Company: GULTU
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021996
Chunk: 3

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 3
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 utilized in the impairment assessment are
determined based on inputs not observable in the market and thus represent Level 3 measurements.

2.
FORMATION OF THE ROYALTY TRUST

On
June 3, 2013, Freeport-McMoRan Inc. (FCX) and McMoRan Exploration Co. (MMR) completed the transactions contemplated by the Agreement
and Plan of Merger, dated as of December 5, 2012 (the merger agreement), by and among MMR, FCX, and INAVN Corp., a Delaware corporation
and indirect wholly owned subsidiary of FCX (Merger Sub). Pursuant to the merger agreement, Merger Sub merged with and into MMR, with
MMR surviving the merger as an indirect wholly owned subsidiary of FCX (the merger).

   6  

The
Royalty Trust is a statutory trust created as contemplated by the merger agreement by FCX under the Delaware Statutory Trust Act pursuant
to a trust agreement entered into on December 18, 2012 (inception), by and among FCX, as depositor, Wilmington Trust, National Association,
as Delaware trustee, and certain officers of FCX, as regular trustees. On May 29, 2013, Wilmington Trust, National Association, was replaced
by BNY Trust of Delaware, as Delaware trustee (the Delaware Trustee), through an action of the depositor. Effective June 3, 2013, the
regular trustees were replaced by The Bank of New York Mellon Trust Company, N. A., a national banking association, as trustee (the Trustee).

The
Royalty Trust was created to hold a 5% gross overriding royalty interest (collectively, the overriding royalty interests) in future production
from each of the Inboard Lower Tertiary/Cretaceous exploration prospects of McMoRan Oil & Gas LLC (McMoRan) located in the shallow
waters of the Gulf of Mexico and onshore in South Louisiana that existed as of December 5, 2012, the date of the merger agreement (collectively,
the subject interests). The subject interests were “carved out” of the mineral interests acquired by FCX pursuant to the
merger and were not considered part of FCX’s purchase consideration of MMR.

In
connection with the merger, on June 3, 2013, (1) FCX, as depositor, McMoRan, as grantor, the Trustee