Company: MTR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001104659-25-078590
Chunk: 11

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 as necessary when funds are added or removed. The net effects of such adjustments for the three months ended June 30, 2025 resulted in the balance of the Contingent Reserve being equal to $1,910,899 as of June 30, 2025 and equal to $1,823,165 as of June 30, 2024.

10

The effect on distributable income per unit of adjustments to the Contingent Reserve is as follows:

                                                                                     Three Months                         Six Months                 
                                                                                   Ended June 30,                     Ended June 30,                 
                                                                                             2025                               2025                 
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Distributable income before reserve for contingent liabilities and expenses             195,817        270,651             276,815        417,680  
  Increase in the Contingent Reserve                                                    (241,301)      (329,789)           (371,992)      (537,673)  
  Withdrawal from the Contingent Reserve                                                  221,820        268,880             333,119        444,722  
  Distributable income available for distribution                                         176,336        209,742             237,942        324,729  
  Distributable income available for distribution per unit                                 0.0946         0.1125              0.1277         0.1742  
  Units outstanding                                                                     1,863,590      1,863,590           1,863,590      1,863,590  

Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations.

The following review of the financial condition and results of operations of Mesa Royalty Trust (the “ Trust”) should be read in conjunction with the financial statements and notes thereto. The discussion of net production attributable to the Hugoton Royalty Properties and San Juan Basin Royalty Properties (as each is defined below) represents production volumes that are to a large extent hypothetical as the Trust does not own and is not entitled to any specific production volumes. Any discussion of “actual” production volumes represents the hydrocarbons that were produced from the properties in which the Trust has an overriding royalty interest. See Note 7 to the financial statements in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2024.

The Trust was created on November