Mesa Royalty Trust (MTR) Q4 2024 earnings summary

Executive summary

• 2024 distributable income fell to $462,956 from $2.86 million in 2023; distributable income per unit declined to $0.2484 from $1.5330.

• Lower natural gas and NGL prices and reduced production drove the decline, partly offset by lower operating and capital costs in some areas.

Financial highlights

• Royalty income was $649,164 in 2024 versus $3,279,909 in 2023; interest income was $96,855 versus $99,057.

• G&A expense increased to $196,399 from $186,843; other income (loss) was $(14,664) versus $14,691.

• Income available before reserve changes was $534,956 versus $3,206,814; $72,000 was withheld for current expenses in 2024 versus $350,000 in 2023.

• Cash distributions totaled $393,144, or $0.2109 per unit, versus $2,773,768, or $1.4884 per unit, in 2023.

Outlook and guidance

• The Trustee intends to increase the Contingent Reserve from $1.872 million at year-end to $2.0 million; the timing and amounts will be set monthly and will reduce cash available for distribution.

• No drilling was reported in 2024 at Hugoton; two major recomplete projects were completed in San Juan Basin–New Mexico during 2024.

• Proved reserves totaled 4,536 MMcf of gas, 337 Mbbl of NGLs and 9 Mbbl of oil and condensate at year-end 2024; standardized discounted future Royalty income was $8.907 million.