What changed in this filing

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Item 1A. Risk Factors

2025-05-14 compared with 2025-02-13 · 52 added, 53 removed, 238 unchanged (31% of the section changed)

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CONDENSED CONSOLIDATED STATE MENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

As of December 31, 2024 and June 30, 2024

As of March 31, 2025 and June 30, 2024

Current assets:

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CONDENSED CONSOLIDATED STATE MENTS OF DISTRIBUTABLE INCOME

For the Three Month and Six Months Ended December 31, 2024 and 2023

For the Three Months and Nine Months Ended March 31, 2025 and 2024

Three Months Ended

Six Months Ended

Nine Months Ended

Oil and natural gas royalties

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TRUST CORPUS

For the Six Months Ended December 31, 2024 and 2023

Six Months Ended

For the Nine Months Ended March 31, 2025 and 2024

Nine Months Ended

Trust corpus, beginning of period

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Distributions per unit

For the Three Months Ended December 31, 2024 and 2023

For the Three Months Ended March 31, 2025 and 2024

Three Months Ended

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NOTES TO CONDENSED CONSOLID ATED FINANCIAL STATEMENTS

December 31, 2024

March 31, 2025

Accounting Policies

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If the 28th day falls on a Saturday, Sunday or legal holiday, the payments are to be made on the immediately succeeding business day.

Total estimated reserve for future expenses deducted from calculated distributable income for the three months ended December 31, 2024 was $102,500.

Total estimated reserve for future expenses deducted from calculated distributable income for the three months ended March 31, 2025 was $75,500.

As stated under “Note 1.

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The Trust’s Indenture provides that the term of the Trust will expire on June 1, 2041, unless extended by the vote of the holders of a majority of the outstanding units of beneficial interest.

The Trust is not permitted to engage in any business activity because it was organized for the sole purpose of providing an efficient, orderly and practical means for the administration and liquidation of rights to payments from certain oil and natural gas leases in the Gulf of Mexico, pursuant to license agreements and amendments between the Trust’s predecessors and Gulf Oil Corporation (“Gulf”).

The Trust is not permitted to engage in any business activity because it was organized for the sole purpose of providing an efficient, orderly and practical means for the administration and liquidation of rights to payments from certain oil and natural gas leases in the Gulf of America, pursuant to license agreements and amendments between the Trust’s predecessors and Gulf Oil Corporation (“Gulf”).

As a result of various transactions that have occurred since 1956, these interests were largely held by Chevron Corporation (“Chevron”) and are now predominantly held by its assignees, including Arena Energy, LP (collectively with Chevron and its assignees, the “Interest Owners”).

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Marine has performed a review of the public records from the Bureau of Ocean Energy Management (BOEM) and Marine's revenue records provided by the operators.

Based on this information, Marine believes that as of December 31, 2024, Marine had an overriding royalty interest in 19 different oil and natural gas leases covering an aggregate of 87,326 gross acres.

The lease acreage is all located in federal waters in the Central and Western areas of the Gulf of Mexico off the coasts of Louisiana and Texas.

Based on this information, Marine believes that as of March 31, 2025, Marine had an overriding royalty interest in 19 different oil and natural gas leases covering an aggregate of 87,326 gross acres.

The lease acreage is all located in federal waters in the Central and Western areas of the Gulf of America off the coasts of Louisiana and Texas.

Leases are typically granted for a term of five years, during which the lease owner must establish commercial production, or the lease expires.

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Of the aggregate of 87,326 total gross acres in which Marine has an overriding royalty interest, there are 210 gross acres located on leases that have commercial production, but the production is not on Marine’s overriding royalty area within those leases.

Marine holds an overriding royalty interest that is equal to three-fourths of one percent of the working interest and is calculated on the value at the well of any oil, natural gas or other minerals produced and sold from 19 leases covering 87,326 gross acres located in the Gulf of Mexico.

Marine’s overriding royalty interest applies only to existing leases and does not apply to any new leases that the Interest Owners may acquire.

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Cash reserves are permitted to be established by the Trustee for certain contingencies that would not be recorded under generally accepted accounting principles in the United States.

Marine did not have any changes in its critical accounting policies or estimates during the three and six months ended December 31, 2024.

Marine did not have any changes in its critical accounting policies or estimates during the three and nine months ended March 31, 2025.

Please see Marine’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 for a detailed discussion of its critical accounting policies.

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Summary of Operating Results

During the six month period ending December 31, 2024, the Trust realized approximately 94% of its royalty income from the sale of oil and approximately 6% of its royalty income from the sale of natural gas and natural gas liquids.

During the six month period ending December 31, 2023, the Trust realized approximately 99% of its royalty income from the sale of oil and approximately 1% of

its royalty income from the sale of natural gas and natural gas liquids.

During the nine months ended March 31, 2025, the Trust realized approximately 94% of its royalty income from the sale of oil and approximately 6% of its royalty income from the sale of natural gas and natural gas liquids.

During the nine months ended March 31, 2024, the Trust realized approximately 99% of its royalty income from the sale of oil and approximately 1% of its royalty income from

the sale of natural gas and natural gas liquids.

Royalty income includes royalties from oil, natural gas, and natural gas liquids received from producers.

Distributable income per unit for the six months ended December 31, 2024, was $0.16 as compared to $0.21 for the comparable period in 2023.

Distributions per unit also amounted to $0.20 per unit for the six months ended December 31, 2024, a decrease from distributions of $0.21 per unit for the comparable period in 2023.

For the six months ended December 31, 2024, oil production decreased to 5,263 barrels (bbls) from 7,041 bbls for the comparable period in 2023.

Natural gas volumes sold increased to 8,438 thousand cubic feet (mcf) from 5,439 mcf and natural gas liquids sold increased from 10,983 mcf to 14,930 mcf for the six months ended December 31, 2024, as compared to the same period in 2023.

For the six months ended December 31, 2024, the average price realized for oil increased to $79.17 per barrel (bbl) as compared to the price of $75.71 per bbl realized for the comparable period in 2023.

Distributable income per unit for the nine months ended March 31, 2025, was $0.28 as compared to $0.27 for the comparable period in 2024.

Distributions per unit also amounted to $0.27 per unit for the nine months ended March 31, 2025, a decrease from distributions of $0.31 per unit for the comparable period in 2024.

For the nine months ended March 31, 2025, oil production decreased to 9,718 barrels (bbls) from 10,005 bbls for the comparable period in 2024.

Natural gas volumes sold increased to 14,677 thousand cubic feet (mcf) from 7,615 mcf and natural gas liquids sold increased from 14,524 mcf to 26,686 mcf for the nine months ended March 31, 2025, as compared to the same period in 2024.

For the nine months ended March 31, 2025, the average price realized for oil decreased to $75.67 per barrel (bbl) as compared to the price of $76.60 per bbl realized for the comparable period in 2024.

The average price realized for natural gas (net of expenses) increased to $2.10 per mcf as compared to the average price of $0.84 per mcf realized for the comparable period in 2024, and the average price realized for natural gas liquids (net of expenses) increased to $0.46 per mcf as compared to the average price of $0.14 per mcf realized for the comparable period in 2024.

Results of Operations—Three Months Ended December 31, 2024 Compared to the Three Months Ended December 31, 2023

Income from oil and natural gas royalties decreased to $159,064 during the three months ended December 31, 2024, from $249,200 realized for the comparable period in 2023.

Royalties decreased for the three months ended December 31, 2024 as compared to the comparable period in 2023 primarily due to a check from one remitter not being received and processed by the deadline to be included in this quarter’s distribution.

The decrease was partially offset by increases in the production of natural gas and natural gas liquids, and by higher natural gas, and natural gas liquids prices.

Distributable income decreased to $81,138 for the three months ended December 31, 2024, from $199,238 realized for the comparable period in 2023.

Income from oil royalties, for the three months ended December 31, 2024, decreased to $151,919 from $246,941 realized for the comparable period in 2023.

The volume of oil sold in the three months ended December 31, 2024, decreased to 1,999 bbls from 3,077 bbls realized for the comparable period in 2023, and the average price realized for oil decreased to $76.01 per bbl for the three months ended December 31, 2024, from $80.25 per bbl realized for the comparable period in 2023.

Income from natural gas royalties (net of expenses), for the three months ended December 31, 2024, increased to $5,090 from $1,737 for the comparable period in 2023.

The volume of natural gas sold in the three months ended December 31, 2024, increased to 3,343 mcf from 2,291 mcf realized for the comparable period in 2023, and the average price realized for natural gas (net of expenses) increased to $1.52 per mcf for the three months ended December 31, 2024, from $0.76 per mcf realized for the comparable period in 2023.

Income from natural gas liquids royalties (net of expenses), for the three months ended December 31, 2024, increased to $2,055 from $522 for the comparable period in 2023.

The volume of natural gas liquids sold in the three months ended December 31, 2024, increased to 6,493 mcf from 5,471 mcf realized for the comparable period in 2023, and the average price realized for natural gas liquids (net of expenses) increased to $0.32 per mcf for the three months ended December 31, 2024, from $0.10 per mcf realized for the comparable period in 2023.

The following table presents the quantities of oil, natural gas, and natural gas liquids sold and the average price realized for the three months ended December 31, 2024, and those realized for the comparable period in 2023.

The three months ended December 31, 2023 has been revised from the prior presentation to present the natural gas liquids separately from natural gas.

Results of Operations—Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Income from oil and natural gas royalties increased to $332,993 during the three months ended March 31, 2025, from $234,500 realized for the comparable period in 2024.

Royalties increased for the three months ended March 31, 2025 as compared to the comparable period in 2024 primarily due to increases in the production of oil, natural gas, and natural gas liquids.

Distributable income increased to $242,418 for the three months ended March 31, 2025, from $115,524 realized for the comparable period in 2024.

Income from oil royalties, for the three months ended March 31, 2025, increased to $318,672 from $233,186 realized for the comparable period in 2024.

The volume of oil sold in the three months ended March 31, 2025, increased to 4,455 bbls from 2,964 bbls realized for the comparable period in 2024, and the average price realized for oil decreased to $71.53 per bbl for the three months ended March 31, 2025, from $78.67 per bbl realized for the comparable period in 2024.

Income from natural gas royalties (net of expenses), for the three months ended March 31, 2025, increased to $10,319 from $1,058 for the comparable period in 2024.

The volume of natural gas sold in the three months ended March 31, 2025, increased to 6,239 mcf from 2,176 mcf realized for the comparable period in 2024, and the average price realized for natural gas (net of expenses) increased to $1.65 per mcf for the three months ended March 31, 2025, from $0.49 per mcf realized for the comparable period in 2024.

Income from natural gas liquids royalties (net of expenses), for the three months ended March 31, 2025, increased to $4,001 from $257 for the comparable period in 2024.

The volume of natural gas liquids sold in the three months ended March 31, 2025, increased to 11,756 mcf from 3,541 mcf realized for the comparable period in 2024, and the average price realized for natural gas liquids (net of expenses) increased to $0.34 per mcf for the three months ended March 31, 2025, from $0.07 per mcf realized for the comparable period in 2024.

The following table presents the quantities of oil, natural gas, and natural gas liquids sold and the average price realized for the three months ended March 31, 2025, and those realized for the comparable period in 2024.

The three months ended March 31, 2024 has been revised from the prior presentation to present the natural gas liquids separately from natural gas.

In previous years, the natural gas liquids revenue was included with the natural gas revenue and the average price of natural gas was calculated using the combined revenue number but did not include the natural gas liquids quantities sold.

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Average price

General and administrative expenses increased to $84,758 for the three months ended December 31, 2024 from $63,676 for the comparable period of 2023, primarily due to the timing of payment of professional fees.

Results of Operations—Six Months Ended December 31, 2024 Compared to the Six Months Ended December 31, 2023

Income from oil and natural gas royalties decreased to $445,562 during the six months ended December 31, 2024, from $540,221 realized for the comparable period in 2023.

Royalties decreased for the six months ended December 31, 2024, primarily due to a decrease in production of oil, offset somewhat by increases in the price of oil, natural gas and natural gas liquids, as well as increases in the production of natural gas and natural gas liquids.

Distributable income decreased to $314,690 for the six months ended December 31, 2024 from $427,295 realized for the comparable period in 2023.

Income from oil royalties for the six months ended December 31, 2024, decreased to $416,705 from $533,109 realized for the comparable period in 2023.

The volume of oil sold in the six months ended December 31, 2024, decreased to 5,263 bbls from 7,041 bbls realized for the comparable period in 2023, and the average price realized for oil inccreased to $79.17 per bbl for the six months ended December 31, 2024, from $75.71 per bbl realized for the comparable period in 2023.

Income from natural gas royalties (net of expenses) for the six months ended December 31, 2024, increased to $20,474 from $5,272 for the comparable period in 2023.

The volume of natural gas sold in the six months ended December 31, 2024, increased to 8,438 mcf from 5,439 mcf realized for the comparable period in 2023, and the average price realized for natural gas (net of expenses) decreased to $2.43 per mcf for the six months ended December 31, 2024, from $0.97 per mcf realized for the comparable period in 2023.

Income from natural gas liquids royalties (net of expenses), for the six months ended December 31, 2024, increased to $8,383 from $1,839 for the comparable period in 2023.

The volume of natural gas liquids sold in the six months ended December 31, 2024, increased to 14,930 mcf from 10,983 mcf realized for the comparable period in 2023, and the average price realized for natural gas liquids (net of expenses) increased to $0.56 per mcf for the six months ended December 31, 2024, from $0.17 per mcf realized for the comparable period in 2023.

The following table presents the quantities of oil and natural gas sold and the average price realized for the six months ended December 31, 2024, and those realized for the comparable period in 2023.

The six months ended December 31, 2023, has been revised from the prior presentation to present the natural gas liquids separately from natural gas.

General and administrative expenses decreased to $95,670 for the three months ended March 31, 2025 from $132,046 for the comparable period of 2024, primarily due to the timing of payment of professional fees.

Results of Operations—Nine months Ended March 31, 2025 Compared to the Nine months ended March 31, 2024

Income from oil and natural gas royalties increased to $778,554 during the nine months ended March 31, 2025, from $774,721 realized for the comparable period in 2024.

Royalties increased for the nine months ended March 31, 2025, primarily due to an increase in the price and volume of natural gas and natural gas liquids.

Distributable income increased to $557,108 for the nine months ended March 31, 2025 from $542,819 realized for the comparable period in 2024.

Income from oil royalties for the nine months ended March 31, 2025, decreased to $735,377 from $766,295 realized for the comparable period in 2024.

The volume of oil sold in the nine months ended March 31, 2025, decreased to 9,718 bbls from 10,005 bbls realized for the comparable period in 2024, and the average price realized for oil decreased to $75.67 per bbl for the nine months ended March 31, 2025, from $76.60 per bbl realized for the comparable period in 2024.

Income from natural gas royalties (net of expenses) for the nine months ended March 31, 2025, increased to $30,848 from $6,395 for the comparable period in 2024.

The volume of natural gas sold in the nine months ended March 31, 2025, increased to 14,677 mcf from 7,615 mcf realized for the comparable period in 2024, and the average price realized for natural gas (net of expenses) increased to $2.10 per mcf for the nine months ended March 31, 2025, from $0.84 per mcf realized for the comparable period in 2024.

Income from natural gas liquids royalties (net of expenses), for the nine months ended March 31, 2025, increased to $12,330 from $2,031 for the comparable period in 2024.

The volume of natural gas liquids sold in the nine months ended March 31, 2025, increased to 26,686 mcf from 14,524 mcf realized for the comparable period in 2024, and the average price realized for natural gas liquids (net of expenses) increased to $0.46 per mcf for the nine months ended March 31, 2025, from $0.14 per mcf realized for the comparable period in 2024.

The following table presents the quantities of oil and natural gas sold and the average price realized for the nine months ended March 31, 2025, and those realized for the comparable period in 2024.

The nine months ended March 31, 2024, has been revised from the prior presentation to present the natural gas liquids separately from natural gas.

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financial statements or distributable income.

Six Months Ended

Nine Months Ended

Average price

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Average price

General and administrative expenses increased to $153,398 for the six months ended December 31, 2024 from $140,294 for the comparable period of 2023, primarily due to the timing of payment of professional fees.

General and administrative expenses decreased to $249,073 for the nine months ended March 31, 2025 from $272,340 for the comparable period of 2024, primarily due to the timing of payment of professional fees.

Forward-Looking Statements

The statements discussed in this Quarterly Report on Form 10-Q regarding Marine’s future financial performance and results, and other statements that are not historical facts, are forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are intended to be covered by the safe harbor created thereby.

The statements discussed in this Quarterly Report on Form 10-Q regarding Marine’s future financial performance and results, and other statements that are not historical facts, are forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are intended to be covered by the safe harbor created thereby.

This report uses the words “anticipate,”

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files or submits under the Exchange Act is accumulated and communicated to the Trustee as appropriate to allow timely decisions regarding required disclosure

As of December 31, 2024, the Trustee carried out an evaluation of the effectiveness of the design and operation of Marine’s disclosure controls and procedures pursuant to Rules 13a-15(b) and 15d-15(b) of the Exchange Act.

Based upon that evaluation, the Trustee concluded that Marine’s disclosure controls and procedures were effective as of December 31, 2024.

As of March 31, 2025, the Trustee carried out an evaluation of the effectiveness of the design and operation of Marine’s disclosure controls and procedures pursuant to Rules 13a-15(b) and 15d-15(b) of the Exchange Act.

Based upon that evaluation, the Trustee concluded that Marine’s disclosure controls and procedures were effective as of March 31, 2025.

Changes in Internal Control Over Financial Reporting

There have not been any changes in Marine’s internal control over financial reporting during the quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, Marine’s internal control over financial reporting.

There have not been any changes in Marine’s internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, Marine’s internal control over financial reporting.

OT HER INFORMATION

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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 1A. Risk Factors