Company: MTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001104659-25-029944
Chunk: 61

Company: MESA ROYALTY TRUST/TX
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 61
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 as of December 31, 2024 and equal to $1,730,214 as of December 31, 2023.

The effect on distributable income per unit of adjustments to the Contingent Reserve for the years ended December 31 is as follows:

 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Income available for distribution prior to cash reserves withheld for Trust expenses        534,956        3,206,814  
  Increase in the Contingent Reserve                                                        (763,366)      (3,509,911)  
  Withdrawal from the Contingent Reserve                                                      621,554        3,076,865  
  Distributable Income Available for Distribution                                             393,144        2,773,768  
  Distributable Income Available for Distribution per unit                                     0.2109           1.4884  
  Units outstanding                                                                         1,863,590        1,863,590  

Note 7  -   Supplemental Reserve Information (Unaudited)

Estimates of the proved oil and gas reserves attributable to the Hugoton and San Juan Basin Royalty Properties as of December 31, 2024 and December 31, 2023 are based on the reserve report prepared by Miller and Lents, independent petroleum engineering consultants. The estimates were prepared in accordance with guidelines established by the SEC. Accordingly, the estimates were based on existing economic and operating conditions. The reserve volumes and revenue values for the Trust’s Royalty were estimated by allocating to the Trust a portion of the estimated combined net reserve volumes of the Hugoton Royalty Properties and San Juan Basin Royalty Properties based on future net revenue. Production volumes are allocated based solely on Royalty income. Because the net reserve volumes attributable to the Trust’s Royalty are estimated using an allocation of reserve volumes based on estimates of future net revenue, a change in prices or costs will result in changes in the estimated net reserve volumes. Therefore, the estimated

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net reserve volumes attributable to the Trust’s Royalty will vary if different future price and cost assumptions are used. Only costs necessary to develop and produce existing proved reserve volumes were assumed in the allocation of reserve volumes to the Royalty.

In accordance with revised SEC regulations, reserves for natural gas and oil, condensate and natural gas liquids at December 31, 2024 were based on the average price during the twelvemonth period