What changed in this filing

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Item 1. Financial Statements

2024-05-13 compared with 2023-11-15 · 157 added, 166 removed, 326 unchanged (50% of the section changed)

2 unchanged sentences

OF ASSETS, LIABILITIES AND TRUST CORPUS

September 30, 2023

December 31, 2022

Operating cash

3 unchanged sentences

Reserve fund liability

Trust corpus (230,172,696 royalty trust units authorized, issued and

outstanding as of September 30, 2023 and December 31, 2022)

Trust corpus (230,172,696 royalty trust units authorized, issued and outstanding as of March 31, 2024 and December 31, 2023)

Total liabilities and trust corpus

3 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Royalty income

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Three Months Ended

Nine Months Ended

September 30,

Trust corpus, beginning of period

Trust contributions

Amortization of overriding royalty interests in subject interests

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Therefore, this information should be read in conjunction with the Royalty Trust’s financial

statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2022.

The information furnished herein

reflects all adjustments that are, in the opinion of The Bank of New York Mellon Trust Company, N.A.

(the Trustee), necessary for a fair

statement of the results for the interim periods reported.

All such adjustments are, in the opinion of the Trustee, of a normal recurring

Operating results for the three- and nine-month periods ended September 30, 2023, are not necessarily indicative of the results

that may be expected for the year ending December 31, 2023.

statements and notes contained in its annual report on Form 10-K for the year ended December 31, 2023 (the 2023 Form 10-K).

The information

furnished herein reflects all adjustments that are, in the opinion of The Bank of New York Mellon Trust Company, N.A.

(the Trustee),

necessary for a fair statement of the results for the interim periods reported.

All such adjustments are, in the opinion of the Trustee,

of a normal recurring nature.

Operating results for the three-month period ended March 31, 2024, are not necessarily indicative of the

results that may be expected for the year ending December 31, 2024.

Royalty Trust was created to hold a 5% gross overriding royalty interest (collectively, the overriding royalty interests) in future production

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charges related to production volumes associated with the onshore Highlander subject interest reduced the carrying value of the overriding

royalty interests by $0 and $21,780 during the three- and nine-month periods ended September 30, 2023, respectively, and $34,634 and

$108,101 during the three- and nine-month periods ended September 30, 2022, respectively.

royalty interests by $0 and $21,780 during the three-month periods ended March 31, 2024 and 2023, respectively.

Oil & Gas Assets LLC (HOGA) has a 72 percent working interest and an approximate 48 percent net revenue interest in the onshore Highlander

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operations on the

HOGA has informed the Trustee that the well was shut in effective March 31, 2023 and production from the well has ceased.

that time the well has flowed intermittently but not on a continuous basis.

HOGA has informed the Trustee that the well was shut in effective March 31, 2023 and production from the well has ceased, with

the well having flowed intermittently but not on a continuous basis from that time.

HOGA has informed the Trustee that due to the underground

flow of fluids into the wellbore, the well cannot be salvaged and must be plugged and abandoned.

Abandoning the well will eliminate any

production from the onshore Highlander subject interest, which also will eliminate any proceeds to which the Royalty Trust would be entitled

pursuant to its overriding royalty interests.

Unless another well is drilled on the onshore Highlander subject interest, the Royalty

Trust does not expect to receive any significant income attributable to its overriding royalty interests and accordingly, does not expect

to have any cash available to distribute to Royalty Trust unitholders in future periods.

HOGA currently is evaluating its options regarding

a future drilling of a new well on the Highlander subject interest.

Royalty Trust fully impaired the carrying value of the onshore Highlander subject interest by $308,071 on March 31, 2023.

Trust determined the fair value of the onshore Highlander subject interest to be zero using Level 3 measurements under the fair value

hierarchy of ASC 820 Fair Value Measurement .

Therefore, the Royalty Trust recognized the remaining carrying value of the onshore

Highlander subject interest as of March 31, 2023 as an impairment loss.

Accumulated amortization was $6,756,701 and $6,426,850 at September

30, 2023 and December 31, 2022, respectively.

On March 7, 2024, HOGA notified the

Trustee that operations have begun to permanently plug and abandon the sole well producing from the onshore Highlander subject interest.

Abandoning the well eliminated any production from the onshore Highlander subject interest, which also eliminated any proceeds to which

the Royalty Trust would be entitled pursuant to its overriding royalty interests.

Unless another well is drilled on the onshore Highlander

subject interest, the Royalty Trust does not expect to receive any income attributable to its overriding royalty interests

and accordingly, does not expect to have any cash available to distribute to Royalty Trust unitholders in future periods.

informed the Trustee of any definitive plans to drill a new well on the Highlander subject interest.

Neither the Trustee nor the Royalty

Trust unitholders has any right to control or influence operations of the subject interest.

The Royalty Trust fully impaired the carrying value of the onshore Highlander

subject interest by $308,071 during the quarter ended March 31, 2023.

Unless a new well is drilled on the onshore Highlander subject interest,

the Royalty Trust does not expect to receive any income attributable to its overriding royalty interests.

Therefore, the Royalty Trust

recognized the remaining carrying value of the onshore Highlander subject interest as of March 31, 2023 as an impairment loss.

amortization was $6,756,701 at March 31, 2024 and December 31, 2023.

RELATED PARTY TRANSACTIONS

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The Royalty Trust received royalties of $0 and $386,947 during

the three- and nine-month periods ended September 30, 2023, respectively, and $791,065 and $1,767,784 during the three- and nine-month

periods ended September 30, 2022, respectively.

Royalties received by the Royalty Trust must first be used to (i) satisfy Royalty Trust

administrative expenses and (ii) reduce Royalty Trust indebtedness.

The Royalty Trust had no indebtedness outstanding as of September

30, 2023 and December 31, 2022.

the three-month periods ended March 31, 2024 and 2023, respectively.

Royalties received by the Royalty Trust must first be used to (i)

satisfy Royalty Trust administrative expenses and (ii) reduce Royalty Trust indebtedness.

The Royalty Trust had no indebtedness outstanding

as of March 31, 2024 and December 31, 2023.

quarter, the Trustee will determine the amount of funds available for distribution to the Royalty Trust unitholders.

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Available funds will be reduced by any cash the Trustee reserves against future liabilities.

As of September 30, 2023, the Trustee has established a minimum cash reserve of $302,500.

The minimum cash reserve is not reflective

of the Royalty Trust’s operating cash balance as of September 30, 2023.

As of March 31, 2024, the Trustee has established a minimum cash reserve of $302,500.

The minimum cash reserve is not reflective of the

Royalty Trust’s operating cash balance as of March 31, 2024 and December 31, 2023.

with the distribution to unitholders in the first quarter of 2022, the Royalty Trust withheld $8,750 from the funds otherwise available

for distribution each quarter through the first quarter of 2023, with the intent of gradually building a cash reserve of approximately

As no proceeds were available for distribution in the second and third quarters of 2023, the Royalty Trust did not withhold

any funds for the cash reserve.

Unless another well is drilled on the onshore Highlander subject interest as discussed in Note 2 above,

the Royalty Trust does not intend to withhold funds for the cash reserve in the future, as the Royalty Trust does not expect to have

any cash available to distribute to unitholders in future periods.

This cash is reserved for the payment of future known, anticipated

or contingent expenses or liabilities of the Royalty Trust.

The Trustee may increase or decrease the targeted cash reserve amount at

any time, and may increase or decrease the rate at which it withholds funds to build the cash reserve at any time, without advance notice

to the unitholders.

Cash held in reserve will be invested as required by the royalty trust agreement.

Any cash reserved in excess of

the amount necessary to pay or provide for the payment of future known, anticipated or contingent expenses or liabilities eventually

will be distributed to unitholders, together with interest earned on the funds.

For additional information regarding distributions to

Royalty Trust unitholders, see Note 4.

As no proceeds were available for distribution in the first quarter of 2024, the Royalty Trust did not withhold any funds for

the cash reserve.

Unless a new well is drilled on the onshore Highlander subject interest as discussed in Note 2 above, the Royalty

Trust does not intend to withhold funds for the cash reserve in the future, as the Royalty Trust does not expect to have any cash available

to distribute to unitholders in future periods.

This cash is reserved for the payment of future known, anticipated or contingent expenses

or liabilities of the Royalty Trust.

The Trustee may increase or decrease the targeted cash reserve amount at any time, and may increase

or decrease the rate at which it withholds funds to build the cash reserve at any time, without advance notice to the unitholders.

held in reserve will be invested as required by the amended and restated royalty trust agreement governing the Royalty Trust (the royalty

trust agreement).

Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated

or contingent expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds.

additional information regarding distributions to Royalty Trust unitholders, see Note 4.

of Administrative Expenses.

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to pay administrative expenses.

No such contributions were made during the three-month periods ended September 30, 2023 or 2022.

in light of the shut-in of the sole well on the Highlander subject interest and the cessation of production from the well as described

above, has confirmed to the Trustee that FCX plans to provide funds for the payment of such expenses as they become payable, in accordance

with the provisions of the royalty trust agreement.

In addition to such annual contributions, FCX has agreed to lend money, on an unsecured,

interest-free basis, to the Royalty Trust to fund the Royalty Trust’s ordinary administrative expenses as set forth in the royalty

trust agreement.

No loans were outstanding at September 30, 2023 or December 31, 2022.

On February 1, 2024, pursuant to this provision, FCX contributed approximately $166,000 for the payment

of trust expenses incurred during the year ended December 31, 2023, and contributed the maximum of $350,000 for the payment of trust

expenses incurred during the year ending December 31, 2024.

In addition to such annual contributions, FCX has agreed to lend money, on

an unsecured, interest-free basis, to the Royalty Trust to fund the Royalty Trust’s ordinary administrative expenses as set forth

in the royalty trust agreement.

All funds the Trustee borrows to cover expenses or liabilities, whether from FCX or from any other source,

must be repaid before the Royalty Trust unitholders will receive any distributions.

No loans or repayments were made during the quarters

ending March 31, 2024 or December 31, 2023.

to the royalty trust agreement, FCX agreed to provide and maintain a $1.0 million stand-by reserve account or an equivalent letter of

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of Assets, Liabilities and Trust Corpus.

As of September 30, 2023, the Royalty Trust had not drawn any funds from the reserve account,

and FCX had not requested a reduction of such reserve account.

On February 1, 2024, the Royalty Trust used $14,280 from the reserve account to pay administrative

expenses to the Trustee, which is included in the administrative expenses in the accompanying Statements of Distributable

As of March 31, 2024, FCX had not requested a reduction of the reserve account.

Administration.

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gas sales volumes (measured in thousands of cubic feet, or Mcf), average sales price and net cash proceeds available for distribution

for the three- and nine-month periods ended September 30, 2023 and 2022, are set forth in the table below.

for the three-month periods ended March 31, 2024 and 2023, are set forth in the table below.

Three Months Ended

Nine Months Ended

September 30,

Natural gas sales volumes (Mcf)

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Net cash proceeds available for distribution

summary of quarterly per unit distributions for the three-month periods ended March 31, 2023 and 2022, the three-month periods ended

June 30, 2023 and 2022, and the three-month periods ended September 30, 2023 and 2022, is set forth in the table below.

Per Unit Amount

summary of quarterly per unit distributions for the three-month periods ended March 31, 2024 and 2023, is set forth in the table below.

distributions are not necessarily indicative of future distributions.

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SUBSEQUENT EVENTS

Royalty Trust evaluated all other events subsequent to September 30, 2023, and through the date the Royalty Trust’s financial statements

Royalty Trust evaluated all other events subsequent to March 31, 2024, and through the date the Royalty Trust’s financial statements

were issued, and determined that all events or transactions occurring during this period requiring recognition or disclosure were appropriately

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subject interest to HOGA.

At September 30, 2023, HOGA owned interests in approximately 131 gas leases onshore in South Louisiana, covering

approximately 9,000 gross acres (6,476 acres net to HOGA’s interest) associated with the onshore Highlander subject interest.

or not HOGA maintains the acreage associated with the onshore Highlander subject interest is determined by HOGA’s current and future

plans, over which the Royalty Trust has no control.

As of September 30, 2023, the onshore Highlander subject interest had minimal production,

prompting HOGA to shut-in the well.

At March 31, 2024, HOGA owned interests in gas leases onshore in South Louisiana, covering approximately 9,000

gross acres associated with the onshore Highlander subject interest.

Whether or not HOGA maintains the acreage associated with the onshore

Highlander subject interest is determined by HOGA’s current and future plans and other outside factors, over which the Royalty

Trust has no control.

As of March 31, 2024, the onshore Highlander subject interest had no production, as HOGA had commenced operations

to permanently plug and abandon the well in early March 2024.

of the Onshore Highlander Subject Interest

5 unchanged sentences

operations on the

HOGA has informed the Trustee that the well was shut in effective March 31, 2023 and production from the well has ceased.

that time the well has flowed intermittently but not on a continuous basis.

HOGA has informed the Trustee that the well was shut in effective March 31, 2023 and production from the well has ceased, with

the well having flowed intermittently but not on a continuous basis from that time.

HOGA has informed the Trustee that due to the underground

flow of fluids into the wellbore, the well cannot be salvaged and must be plugged and abandoned.

Abandoning the well will eliminate any

production from the onshore Highlander subject interest, which also will eliminate any proceeds to which the Royalty Trust would be entitled

pursuant to its overriding royalty interests.

Unless another well is drilled on the onshore Highlander subject interest, the Royalty

Trust does not expect to receive any significant income attributable to its overriding royalty interests and accordingly, does not expect

Abandoning the well eliminated any production

from the onshore Highlander subject interest, which also eliminated any proceeds to which the Royalty Trust would be entitled pursuant

to its overriding royalty interests.

Unless a new well is drilled on the onshore Highlander subject interest,

the Royalty Trust does not expect to receive any income attributable to its overriding royalty interests and accordingly, does not expect

to have any cash available to distribute to Royalty Trust unitholders in future periods.

HOGA currently is evaluating its options regarding

the drilling of a new well on the Highlander subject interest.

HOGA has not informed the Trustee of any definitive

plans to drill a new well on the Highlander subject interest.

Neither the Trustee nor the Royalty Trust unitholders has any right to control

or influence operations of the subject interest.

AND CAPITAL RESOURCES

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or interest due, to the extent the Royalty Trust lacks sufficient funds to pay administrative expenses.

No such contributions by FCX

were made during the nine-month periods ended September 30, 2023 or 2022.

FCX, in light of the shut-in of the sole well on the Highlander

subject interest and the cessation of production from the well as described above, has confirmed to the Trustee that FCX plans to provide

funds for the payment of such expenses as they become payable, in accordance with the provisions of the royalty trust agreement.

to such annual contributions, FCX has agreed to lend money, on an unsecured, interest-free basis, to the Royalty Trust to fund the Royalty

Trust’s ordinary administrative expenses as set forth in the royalty trust agreement.

No loans were outstanding as of September

30, 2023, or December 31, 2022.

All funds the Trustee borrows to cover expenses or liabilities, whether from FCX or from any other source,

must be repaid before the Royalty Trust unitholders receive any distributions.

On February 1, 2024, pursuant

to this provision, FCX contributed approximately $166,000 for the payment of trust expenses incurred during the year ended December 31,

2023, and contributed the maximum of $350,000 for the payment of trust expenses incurred during the year ending December 31, 2024.

addition to such annual contributions, FCX has agreed to lend money, on an unsecured, interest-free basis, to the Royalty Trust to fund

the Royalty Trust’s ordinary administrative expenses as set forth in the royalty trust agreement.

All funds the Trustee borrows

to cover expenses or liabilities, whether from FCX or from any other source, must be repaid before the Royalty Trust unitholders will

receive any distributions.

No loans or repayments were made during the quarters ending March 31, 2024 or December 31, 2023.

to the royalty trust agreement, FCX agreed to provide and maintain a $1.0 million stand-by reserve account or an equivalent letter of

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The $1.0 million, plus

interest collected thereon, is held in reserve fund cash.

As of September 30, 2023, the Royalty Trust had not drawn any funds from the

reserve account, and FCX had not requested a reduction of such reserve account.

interest collected thereon, is reflected as reserve fund cash, with a corresponding reserve fund liability in the accompanying Statements

of Assets, Liabilities and Trust Corpus.

On February 1, 2024, the Royalty Trust used $14,280 from the reserve account to pay administrative

expenses to the Trustee, which is included in the administrative expenses in the accompanying Statements of Distributable

As of March 31, 2024, FCX had not requested a reduction of the reserve account.

connection with the completion of the Highlander Sale, HOGA assumed all administrative and reporting responsibilities with respect to

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month in which production payments are received by HOGA.

The Royalty Trust received royalties of $0 and $401,278 during the three- and

nine-month periods ended September 30, 2023, respectively, and $791,065 and $1,767,784 during the three- and nine-month periods ended

September 30, 2022, respectively.

The Royalty Trust received royalties of $0 and $386,947 during the three-month

periods ended March 31, 2024 and 2023, respectively.

received by the Royalty Trust must first be used to (i) satisfy Royalty Trust administrative expenses and (ii) reduce Royalty Trust indebtedness.

The Royalty Trust had no indebtedness outstanding as of September 30, 2023 and December 31, 2022.

The Royalty Trust had no indebtedness outstanding as of March 31, 2024 and December 31, 2023.

quarter, the Trustee will determine the amount of funds available for distribution to the Royalty Trust unitholders.

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future liabilities.

As of September 30, 2023, the Trustee has established a minimum cash reserve of $302,500.

The minimum cash reserve

is not reflective of the Royalty Trust’s operating cash balance as of September 30, 2023.

As of March 31, 2024, the Trustee has established a minimum cash reserve of $302,500.

The minimum cash reserve is

not reflective of the Royalty Trust’s operating cash balance as of March 31, 2024 and December 31, 2023.

with the distribution to unitholders in the first quarter of 2022, the Royalty Trust withheld $8,750 from the funds otherwise available

for distribution each quarter through the first quarter of 2023, with the intent of gradually building a cash reserve of approximately

As no proceeds were available for distribution in the second or third quarters of 2023, the Royalty Trust did not withhold

any funds for the cash reserve.

Unless another well is drilled on the onshore Highlander subject interest as discussion “Overview

Status of the Onshore Highlander Subject Interest”

above, the Royalty Trust does not intend to withhold funds for the cash

reserve as the Royalty Trust does not expect to have any cash available to distribute to unitholders in future periods.

reserved for the payment of future known, anticipated or contingent expenses or liabilities of the Royalty Trust.

The Trustee may increase

or decrease the targeted cash reserve amount at any time, and may increase or decrease the rate at which it is withholding funds to build

the cash reserve at any time, without advance notice to the unitholders.

Cash held in reserve will be invested as required by the royalty

trust agreement.

Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or

contingent expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds.

As no proceeds were available for distribution in the first quarter of 2024, the Royalty Trust did not withhold any funds for

the cash reserve.

Unless another well is drilled on the onshore Highlander subject interest as discussion “Overview –

of the Onshore Highlander Subject Interest”

above, the Royalty Trust does not intend to withhold funds for the cash reserve as

the Royalty Trust does not expect to have any cash available to distribute to unitholders in future periods.

This cash is reserved for

the payment of future known, anticipated or contingent expenses or liabilities of the Royalty Trust.

The Trustee may increase or decrease

the targeted cash reserve amount at any time, and may increase or decrease the rate at which it is withholding funds to build the cash

reserve at any time, without advance notice to the unitholders.

Cash held in reserve will be invested as required by the royalty trust

Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent

expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds.

Distributable

income totaled $0 and $197,331 during the three- and nine-month periods ended September 30, 2023, respectively, and $657,410 and $1,220,922

during the three- and nine-month periods ended September 30, 2022, respectively.

These distributions are not necessarily indicative of

future distributions, particularly in light of the shutting in of the sole well producing from the Highlander subject interest, as discussed

above, and the cessation of production from the well, effective March 31, 2023.

HOGA has informed the Trustee that due to the underground

flow of fluids into the wellbore that the well cannot be salvaged and needs to be plugged and abandoned.

Abandoning the well will eliminate

any production from the onshore Highlander subject interest, which also will eliminate any proceeds to which the Royalty Trust would

be entitled pursuant to its overriding royalty interest.

Unless another well is drilled on the onshore Highlander subject interest, the

Royalty Trust does not expect to receive any significant income attributable to its overriding royalty interests and accordingly, does

not expect to have any cash available to distribute to Royalty Trust unitholders in future periods.

The Royalty Trust’s only other

sources of liquidity are mandatory annual contributions, any loans and the required standby reserve account or letter of credit from

As a result, any material adverse change in FCX’s, McMoRan’s or HOGA’s financial condition or results of operations

could materially and adversely affect the Royalty Trust and the underlying royalty trust units.

income totaled $0 and $197,331 during the three-month periods ended March 31, 2024 and 2023, respectively.

These distributions are not

necessarily indicative of future distributions.

As previously disclosed, the sole well producing from the onshore Highlander subject

interest experienced an operational issue on January 19, 2023, resulting in substantial amounts of water entering the well, which caused

a shut in of the well before production resumed at significantly reduced levels.

Following an evaluation by HOGA’s field operations

team, HOGA determined that it would be necessary to commence operations to control the water production, in expectation of eventually

initiating “kill”

operations on the well.

HOGA informed the Trustee that the well was shut in effective March 31, 2023 and

production from the well has ceased with the well having flowed intermittently but not on a continuous basis from that time.

2023, HOGA informed the Trustee that due to the underground flow of fluids into the wellbore, the well cannot be salvaged and must be

plugged and abandoned.

HOGA subsequently informed the Trustee that operations to permanently plug and abandon the well commenced in early

The onshore Highlander subject interest is the only subject interest that has established commercial production.

the well eliminated any production from the onshore Highlander subject interest, which also eliminated any proceeds to which the Royalty

Trust would be entitled pursuant to its overriding royalty interests during the same period.

Unless another well is drilled on the onshore

Highlander subject interest, the Royalty Trust does not expect to receive any income attributable to its overriding royalty interests

and accordingly, does not expect to have any cash available to distribute to Royalty Trust unitholders in future periods.

informed the Trustee of any definitive plans to drill a new well on the Highlander subject interest.

Neither the Trustee nor the Royalty

Trust unitholders has any right to control or influence operations of the subject interest.

Royalty Trust’s only other sources of liquidity are mandatory annual contributions, any loans and the required standby reserve

account or letter of credit from FCX.

As a result, any material adverse change in FCX’s, McMoRan’s or HOGA’s financial

condition or results of operations could materially and adversely affect the Royalty Trust and the underlying royalty trust units.

SHEET ARRANGEMENTS

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OF OPERATIONS

In accordance with the terms of the master conveyance, during the three-month period ended September 30, 2023, the Royalty

Trust did not receive royalty income.

During the three-month period ended September 30, 2022, the Royalty Trust received royalties of

$791,065 related to 104,953 Mcf of natural gas production attributable to the onshore Highlander subject interest with average post-production

costs of $0.43 per Mcf and an average sales price of $7.97 per Mcf.

the nine-month period ended September 30, 2023, the Royalty Trust received royalties of $401,278 related to 101,352 Mcf of natural gas

production attributable to the onshore Highlander subject interest with average post-production costs of $0.67 per Mcf and an average

sales price of $4.63 per Mcf.

During the nine-month period ended September 30, 2022, the Royalty Trust received royalties of $1,767,784

In accordance with the terms of the master conveyance, during the three-month period ended March 31, 2024, the Royalty Trust

did not receive royalty income.

During the three-month period ended March 31, 2023, the Royalty Trust received royalties of $386,947

related to 87,121 Mcf of natural gas production attributable to the onshore Highlander subject interest with average post-production

costs of $0.54 per Mcf and an average sales price of $4.98 per Mcf.

income was lower during the three- and nine-month periods ended September 30, 2023, as compared to the corresponding 2022 periods, primarily

due to lower production resulting from the operational issues relating to the sole well producing from the Highlander subject interest

and ultimately the shutting in of the well.

Administrative

1 unchanged sentence

of the Royalty Trust.

During the three-month periods ended September 30, 2023 and 2022, the Royalty Trust paid administrative expenses

of $108,432 and $127,201, respectively.

During the nine-month periods ended September 30, 2023 and 2022, the Royalty Trust paid administrative

expenses of $469,822 and $523,291, respectively.

Administrative expenses were lower for the three- and nine-month periods ended September

30, 2023, as compared to the corresponding 2022 periods, primarily due to the timing of payments for professional services.

During the three-month periods ended March 31, 2024 and 2023, the Royalty Trust paid administrative expenses of

$421,723 and $189,676, respectively.

Administrative expenses were higher for the three-month period ended March 31, 2024, as compared

to the corresponding period in 2023, primarily due to the Trust’s payment of fourth quarter 2023 administrative expenses in the

first quarter of 2024.

ACCOUNTING STANDARDS

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements