Company: MTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001104659-25-029944
Chunk: 25

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 25
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 and the Working Interest Owners. Factors that contribute to price fluctuation include, among others:

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political conditions worldwide, in particular political disruption, war or other armed conflicts that affect oil supply;

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worldwide economic conditions, including conditions affecting interest rates and availability of financing;

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weather conditions;

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the supply and price of foreign natural gas;

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the level of consumer demand;

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the price and availability of alternative fuels;

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trade barriers and tariffs;

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the proximity to, and capacity of, transportation facilities;

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the effect of worldwide energy conservation measures; and

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the occurrence or threat of epidemic or pandemic diseases or any government response to such occurrence or threat.

Moreover, government regulations, such as regulation of natural gas transportation, regulation of greenhouse gas and other emissions associated with fossil fuel combustion, and price controls, can affect product prices in the long-term.

Crude oil prices have been historically volatile and fell sharply during the pandemic. Oil demand rebounded in the second half of 2020, and prices increased in 2021 and 2022, decreased in 2023 and increased slightly in 2024. The NYMEX crude oil spot prices per Bbl were $71.72 and $71.65 as of December 31, 2024 and December 30, 2023, respectively. As of March 25, 2025, the price was $69.00 per Bbl. The Trust cannot predict the timing or the duration of any economic cycle or other adverse events and, depending on the prices realized, the financial condition of the Trust could be materially adversely affected. When natural gas prices decline, the Trust is affected in two ways. First, net royalties are reduced. Second, exploration and development activity on the underlying properties may decline as some projects may become uneconomic and are either delayed or eliminated. The volatility of energy prices reduces the predictability of future cash distributions to unitholders. Based on information provided by the Working Interest Owners, natural gas and natural gas liquids produced from the Royalty Properties may be sold under short-term or multi-month contracts or on the spot market.

Any decreases in prices of natural gas on the spot market, or in prices reported by Working Interest Owners under applicable contractual arrangements, may materially and adversely affect cash generated from operations, results of operations and reduce Net Proceeds available to the Trust and distributions to Trust unitholders.

Natural gas prices have been historically volatile and fell sharply during the pandemic. During the five years prior to December 31, 2024, Henry Hub