- Mesa Royalty Trust (MTR, Financial) announces April 2025 income distribution of $0.025015971 per unit.
- Income exclusively from New Mexico properties operated by Hilcorp San Juan LP, totaling $75,928.
- Distributions expected to be materially reduced until $2.0 million cash reserves are built.
Mesa Royalty Trust (MTR) has declared its income distribution for April 2025. Unitholders of record on April 30, 2025, will receive $0.025015971 per unit, payable on July 31, 2025. The income for this period reflects total earnings of $75,928 from the New Mexico portion of the Trust's San Juan Basin properties, operated by Hilcorp San Juan LP. After accounting for administrative expenses, the distributable net profits amount to $46,620.
The Trust has issued a cautionary statement indicating that monthly distributions will be considerably reduced until it accumulates cash reserves totaling $2.0 million. This measure aims to address liquidity needs, given the substantial accumulated excess production costs that are expected to decrease future distributions. Consequently, there might be periods where no distributions will be made to unitholders.
Mesa Royalty Trust's income is subject to various factors, including industry volatility, expenses, and production costs, which could affect the amount available for future distributions. The Trust's management has emphasized the importance of building cash reserves to navigate potential financial uncertainties and operational challenges linked to its oil and gas assets.
