Company: MTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001104659-25-029944
Chunk: 15

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 15
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 proved reserves, future capital expenditures for recovery of reserves not classified as proved are not included in the calculation of estimated future net revenues. Reserve assessment is a subjective process of estimating the recovery from underground accumulations of gas and oil that cannot be measured in an exact way, and estimates of other persons might differ materially from those of Miller and Lents. Accordingly, reserve estimates are often different from the quantities of hydrocarbons that are ultimately recovered.

The Trustee relies on Miller and Lents to prepare the reserve estimates attributable to the Trust’s interests in the Royalty Properties. Although the Trustee inquires with the third-party reserve engineer about the information provided by the Working Interest Owners and the assumptions made and methodologies used by the third-party reserve engineer, the Trustee does not control the information provided by the Working Interest Owners or the assumptions made or methodologies used by the third-party reserve engineer. Accordingly, such information is outside the scope of the internal controls of the Trust and the Trustee. Any past practices not consistent with the Conveyance could also cause the basis for the reserve estimates included above to differ from actual reserve quantities and future net revenues.

Income, Production and Production Prices and Production Costs

Sales and production data from the Royalty Properties for the last two fiscal years is included in the table below. As reflected in the table, natural gas represents the vast majority of production from the Royalty Properties. Although the Trust is exposed to pricing fluctuations with respect to oil and condensate and natural gas liquids, the pricing environment of natural gas has a much more significant impact on Royalty income than any other hydrocarbon. For additional information related to the Trust’s Reserve Report, see “ Note 7  -   Supplemental Reserve Information (Unaudited)” in the Notes to Financial Statements contained in Item 8 of this Form 10-K.

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TABLE OF CONTENTS

  Year ended December 31, 2024:                                                                                                                       
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Average Sales Price                                                  1.69       21.59       68.81        0.55         1.80       18.52       68.81  
  Average Production Costs (1)                                         2.64       45.15      159.36        2.12         7.44       82.31      159.36  
  Net production volumes attributable to the Royalty paid ﻿(2