Mesa Royalty Trust (MTR) Q4 2025 earnings summary

Executive summary

• FY2025 royalty income was $601,840, down from $649,164; all royalty income received came from San Juan Basin–New Mexico properties.

• Distributions totaled $433,915, or $0.2328 per unit, versus $393,144, or $0.2109 per unit, in 2024; natural gas prices and excess production costs remain key drivers.

Financial highlights

• Royalty income was $601,840 in 2025 versus $649,164 in 2024; interest income was $81,330 versus $96,855, and G&A expense was $171,832 versus $196,399.

• Income available for distribution before reserve adjustments was $510,906 versus $534,956; distributable income per unit was $0.2742 versus $0.2484.

• Distributions were $433,915 in 2025 versus $393,144 in 2024; aggregate distributions per unit were $0.2328 versus $0.2109.

Outlook and guidance

• Inflation, high interest rates, tariff uncertainty, and supply and transportation disruptions are expected to raise operator costs and adversely affect royalty income during 2026.

• The reserve is intended to increase from $1,949,017 to $2.0 million; timing and monthly additions depend on circumstances and will reduce cash available for distributions.

• Operators may recover $938,739 of excess production costs reported at year-end 2025 before further royalty income is paid, versus $793,838 at year-end 2024.