Mesa Royalty Trust (MTR) Q3 2025 earnings summary

Executive summary

• Q3 royalty income rose to $128,993 from $63,966 YoY, entirely from Hilcorp-operated San Juan Basin–New Mexico properties; no royalty income came from Hugoton or Colorado properties.

• Nine-month royalty income declined to $460,810 from $552,994; distributions available after reserve adjustments were $309,943, or $0.1663/unit, versus $335,043, or $0.1797/unit.

Financial highlights

• Q3 income available before cash reserves was $88,894 versus $54,942 YoY; statement distributable income per unit was $0.0477 versus $0.0295.

• Q3 distributions available after contingent-reserve movements were $72,000, or $0.0386/unit, versus $10,314, or $0.0055/unit; nine-month amounts were $309,943, or $0.1663/unit, versus $335,043, or $0.1797/unit.

• Cash and short-term investments were $1,999,792 at Sept. 30, 2025, versus $1,930,126 at Dec. 31, 2024; total assets were $3,222,233 versus $3,187,975.

Outlook and guidance

• Trustee intends to build the contingent reserve to $2.0 million; additions are set monthly and may vary, reducing proceeds available for distributions.

• Future distributions could be materially reduced or absent if royalty receipts do not cover reserve funding; accumulated excess production costs have already reduced income and caused some months without distributions.