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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 Form 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period endedMarch 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from to
 Commission File Number 1-12474
 Torch Energy Royalty Trust
  Delaware
    
    74-6411424(State or Other Jurisdiction of
    
    (I.R.S. EmployerIncorporation or Organization)
    
    Identification Number)Rodney Square North1100 North Market Street, Wilmington, Delaware
    
    19890(Address of Principal Executive Offices)
    
    (Zip Code)
 Registrants telephone number, including area code
 Former name, former address and former fiscal year,
  þ o
  o o þ
 o þ




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TABLE OF CONTENTS  PART 1  FINANCIAL INFORMATIONItem I. Financial StatementsItem 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 3. Quantitative and Qualitative Disclosures about Market RiskItem 4. Controls and ProceduresPART II. OTHER INFORMATIONITEM 1. Legal ProceedingsITEM 1A. Risk FactorsITEM 2. Unregistered Sales of Equity Securities and Use of ProceedsITEM 3. Defaults upon Senior SecuritiesITEM 4. Submission of Matters to a Vote of Security HoldersITEM 5. Other InformationITEM 6. ExhibitsSIGNATURESIndex to ExhibitsCertification Pursuant to Section 302Certification Pursuant to Section 906    Table of Contents  TORCH ENERGY ROYALTY TRUST
 
  
 Item I. Financial Statements
  Introduction
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TORCH ENERGY ROYALTY TRUST
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TORCH ENERGY ROYALTY TRUST
 
 March 31, 2007
    
    
    December 31, 2006(Unaudited)ASSETSCash
    
    $
    1
    
    
    $
    1Net profits interests in oil and gas properties
(Net of accumulated amortization of $162,705 and
$162,215 at March 31, 2007 and December 31, 2006,
respectively)
    
    
    17,895
    
    
    
    18,385$
    17,896
    
    
    $
    18,386LIABILITIES AND TRUST CORPUSTrust expense payable
    
    $
    248
    
    
    $
    222Trust corpus
    
    
    17,648
    
    
    
    18,164$
    17,896
    
    
    $
    18,386
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TORCH ENERGY ROYALTY TRUST
 
  Three Months Ended March 31,2007
    
    
    2006Net profits income
    
    $
    1,082
    
    
    $
    3,216Infill Well Net Proceeds
    
    
    
    
    
    
    1131,082
    
    
    
    3,329General and administrative
expenses
    
    
    257
    
    
    
    245Interest expense
    
    
    
    
    
    
    81257
    
    
    
    326Distributable income
    
    $
    825
    
    
    $
    3,003Distributable income
per Unit (8,600,000 Units)
    
    $
    .10
    
    
    $
    .35Distributions per Unit
    
    $
    .10
    
    
    $
    .35
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TORCH ENERGY ROYALTY TRUST
 
  Three Months Ended March 31,2007
    
    
    2006Trust corpus, beginning of period
    
    $
    18,164
    
    
    $
    21,441Amortization of Net Profits Interests
    
    
    (490
    )
    
    
    (434
    )Distributable income
    
    
    825
    
    
    
    3,003Distributions to Unitholders
    
    
    (851
    )
    
    
    (3,019
    )Trust corpus, end of period
    
    $
    17,648
    
    
    $
    20,991
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TORCH ENERGY ROYALTY TRUST
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
    
    Revenues are recognized in the period in which amounts are received by the Trust. Therefore, revenues recognized during the
three-month periods ended March 31, 2007 and 2006 are derived from oil and gas production sold during the three-month
periods ended December 31, 2006 and 2005, respectively. General and administrative expenses are recognized on an accrual
basis.
    
    Amortization of the Net Profits Interests is calculated on a unit-of-production basis
and charged directly to trust corpus.
    
    Distributions to Unitholders are recorded when declared by the Trustee.
    
    An impairment loss is recognized when the net carrying value of the Net Profits Interests exceeds its fair market value. No
impairment loss was recognized during the first quarters of 2007 and 2006.
    
    The financial statements of the Trust differ from financial statements prepared in accordance with GAAP because net profits
income is not accrued in the period of production and amortization of the Net Profits Interests is not charged against
operating results.
    
    Estimates and assumptions have been made in preparing the financial statements of the Trust in order for the financial
statements to be in conformity with accounting principles generally accepted in the United States.
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Marketing Arrangements
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Gathering, Treating and Transportation Arrangements
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Administrative Services Agreement
  Operator Overhead Fees
  Compensation of the Trustee and Transfer Agent
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
 Three Months Ended March 31, 2007 Compared to Three Months Ended March 31, 2006
  Three Months Ended March 31,2007
    
    
    2006Bbls
    
    
    Mcf
    
    
    Bbls
    
    
    Mcfof Oil
    
    
    of Gas
    
    
    of Oil
    
    
    of GasChalkley Field
    
    
    1,028
    
    
    
    259,886
    
    
    
    1,258
    
    
    
    299,627Robinsons Bend Field
    
    
    
    
    
    
    435,075
    
    
    
    
    
    
    
    456,756Cotton Valley Fields
    
    
    202
    
    
    
    163,658
    
    
    
    268
    
    
    
    166,152Austin Chalk Fields
    
    
    3,889
    
    
    
    51,704
    
    
    
    3,533
    
    
    
    46,5415,119
    
    
    
    910,323
    
    
    
    5,059
    
    
    
    969,076
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Three Months Ended March 31, 2007
    
    
    Three Months Ended March 31, 2006Chalkley,
    
    
    
    
    
    
    
    
    
    
    Chalkley,Cotton Valley
    
    
    
    
    
    
    
    
    
    
    Cotton Valleyand Austin
    
    
    Robinsons
    
    
    
    
    
    
    and Austin
    
    
    RobinsonsChalk Fields
    
    
    Bend Field
    
    
    Total
    
    
    Chalk Fields
    
    
    Bend Field
    
    
    TotalOil and gas revenues
    
    $
    2,236
    
    
    $
    1,604
    
    
    $
    3,840
    
    
    $
    3,913
    
    
    $
    2,937
    
    
    $
    6,850Direct operating expenses:Lease operating expenses and
Property tax
    
    
    671
    
    
    
    1,478
    
    
    
    2,149
    
    
    
    497
    
    
    
    1,470
    
    
    
    1,967Severance tax
    
    
    210
    
    
    
    144
    
    
    
    354
    
    
    
    250
    
    
    
    310
    
    
    
    560881
    
    
    
    1,622
    
    
    
    2,503
    
    
    
    747
    
    
    
    1,780
    
    
    
    2,527Net proceeds before capital
expenditures
    
    
    1,355
    
    
    
    (18
    )
    
    
    1,337
    
    
    
    3,166
    
    
    
    1,157
    
    
    
    4,323Capital expenditures
    
    
    216
    
    
    
    32
    
    
    
    248
    
    
    
    313
    
    
    
    51
    
    
    
    3641,139
    
    
    
    (50
    )
    
    
    1,089
    
    
    
    2,853
    
    
    
    1,106
    
    
    
    3,959Cumulative deficit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (574
    )
    
    
    (574
    )Net proceeds
    
    
    1,139
    
    
    
    (50
    )
    
    
    1,089
    
    
    
    2,853
    
    
    
    532
    
    
    
    3,385Net profits percentage
    
    
    95
    %
    
    
    
    
    
    
    
    
    
    
    95
    %
    
    
    95
    %
    
    
    95
    %Net profits income
    
    $
    1,082
    
    
    $
    
    
    
    $
    1,082
    
    
    $
    2,710
    
    
    $
    506
    
    
    $
    3,216
 
 Item 3. Quantitative and Qualitative Disclosures about Market Risk
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Item 4. Controls and Procedures
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ITEM 1.
    
    Legal Proceedings
  
 ITEM 1A.
    
    Risk Factors
  
 ITEM 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
  
 ITEM 3.
    
    Defaults upon Senior Securities
  
 ITEM 4.
    
    Submission of Matters to a Vote of Security Holders
  
 ITEM 5.
    
    Other Information
  
 ITEM 6.
    
    Exhibits
  4.
    
    Instruments of defining the rights of security holders, including indentures.
 4.1
    
    Form of Torch Energy Royalty Trust Agreement.*4.2
    
    Form of Louisiana Trust Agreement. *4.3
    
    Specimen Trust Unit Certificate. *4.4
    
    Designation of Ancillary Trustee. *31.1
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**32.1
    
    Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.**
 
 *
    
    Incorporated by reference from Registration Statements on Form S-1 of Torch Energy
Advisors Incorporated (Registration No. 33-68688) dated November 16, 1993.**
    
    Furnished herewith. 18




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SIGNATURES
  TORCH ENERGY ROYALTY TRUSTBy: Wilmington Trust Company, not in its individual capacity but solely as Trustee for the TrustBy:
    
    /s/ Bruce L. Bisson

Bruce L. BissonVice President
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4.1
    
    Form of Torch Energy Royalty Trust Agreement.*4.2
    
    Form of Louisiana Trust Agreement. *4.3
    
    Specimen Trust Unit Certificate. *4.4
    
    Designation of Ancillary Trustee. *31.1
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**32.1
    
    Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.**
 
 *
    
    Incorporated by reference from Registration Statements on Form S-1 of Torch Energy
Advisors Incorporated (Registration No. 33-68688) dated November 16, 1993.**
    
    Furnished herewith.