What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2020-09-28 compared with 2019-08-30 · 86 added, 83 removed, 115 unchanged (60% of the section changed)

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units of beneficial interest.

On August 30, 2019, these outstanding units of record were held by 230 unitholders.

On September 15, 2020, these outstanding units of record were held by 219 unitholders.

There were no changes in the number of outstanding units of beneficial interest during the fiscal year ended June 30,

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Critical Accounting Policies.

The financial statements of Marine have been prepared on the modified cash

basis method and are not intended to present Marines financial position and results of operations in conformity with GAAP.

The financial statements of Marine have been prepared on the modified cash basis

method and are not intended to present Marines financial position and results of operations in conformity with GAAP.

Under the modified cash basis method:

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Expenses are recorded in the month paid rather than in the month incurred.

Depletion is not recorded.

This comprehensive basis of accounting corresponds to the accounting principles permitted for royalty trusts by the SEC as specified by Staff

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Actual results may differ from such estimates.

Revenue Recognition In May 2014, the FASB issued updated guidance for

Revenue Recognition .

In May 2014, the FASB issued updated guidance for

recognizing revenue from contracts with customers.

This update amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods and services to a

customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services.

The Trust has adopted this standards update, as required, beginning with the first quarter of fiscal year 2019.

of this standard has not had a significant impact on its financial statements due to the modified cash basis of reporting used by the Trust.

customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services and revenue streams related solely to oil and gas royalties.

The Trust adopted the disclosure standards of this update, as

required, beginning with the first quarter of fiscal year 2019.

The adoption of this standard has not had a significant impact on its financial statements due to the modified cash basis of reporting used by the Trust.

Effective October 19, 2017, Simmons First National Corporation (SFNC) completed its acquisition of First Texas BHC, Inc., the

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oil and natural gas sold without reduction for any of the expenses of production.

Value at the well for oil means the purchasers selling price at its receiving point onshore, less the cost of transportation from the offshore lease

to the onshore receiving point.

Value at the well for natural gas means the selling price less the cost of compression, dehydration and transportation from the lease to the delivery point of the pipeline transporting the product to

In general, value at the well is determined on the basis of the selling price of oil, natural gas and other minerals produced, saved and sold, or at wellhead prices determined by industry standards, where the selling price does not reflect

value at the well.

In the event an agreement is not arms-length in nature, the value is based upon current market prices.

Value at the

well for oil means the sellers selling price at its receiving point onshore, less the cost of transportation from the offshore lease to the onshore receiving point.

Value at the

well for natural gas means the selling price less the cost of compression, dehydration and transportation from the lease to the delivery point of the pipeline transporting the product to market.

In general, value at the well is determined on

the basis of the selling price of oil, natural gas and other minerals produced, saved and sold, or at wellhead prices determined by industry standards, where the selling price does not reflect value at the well.

In the event an agreement is not

arms-length in nature, the value is based upon current market prices.

Summary Review.

In general, Marine receives royalties two months after oil production

and three months after natural gas production.

The June 2019 distribution of $0.059910 per unit decreased from the March 2019 distribution of $0.079880 per unit.

As disclosed in a press release dated August 20, 2019, the September 2019

distribution of $0.0855 per unit will be an increase from the June 2019 distribution of $0.059910 per unit.

Marines distributable

income for fiscal 2019 amounted to $634,072, or $0.32 per unit, as compared to $661,919 or $0.33 per unit, in fiscal 2018, and $751,506, or $0.38 per unit, in fiscal 2017.

Distributions to unitholders are calculated and paid out net of reserve for

future expenses, which are estimated by the Trustee on a quarterly basis.

These results also include income from the Trusts

interest in Tidelands, which amounted to $0 for fiscal 2019, $56 for fiscal 2018 and $26,355 for fiscal 2017.

Income from Tidelands contributed approximately 0% of Marines royalty income for fiscal 2019 as compared to 0.01% of Marines

royalty income in fiscal 2018 and to 3% of Marines royalty income in fiscal 2017.

The following table shows the number of wells

drilled or recompleted on leases in which Marine has an interest (including its interest in Tidelands) and the number of active wells at the end of each of the past three fiscal years.

In general, Marine receives royalties two

months after oil production and three months after natural gas production.

The June 2020 distribution of $0.10 per unit increased from the March 2020 distribution of $0.07 per unit.

As disclosed in a press release dated August 21, 2020, the

September 2020 distribution of $0.04 per unit will be a decrease from the June 2020 distribution of $0.10 per unit.

distributable income for fiscal 2020 amounted to $574,110, or $0.29 per unit, as compared to $634,072 or $0.32 per unit, in fiscal 2019, and $661,919, or $0.33 per unit, in fiscal 2018.

Distributions to unitholders are calculated and paid out net of

reserve for future expenses, which are estimated by the Trustee on a quarterly basis.

These results also include income from the

Trusts interest in Tidelands, which amounted to $0 for fiscal 2020, $0 for fiscal 2019 and $56 for fiscal 2018.

Income from Tidelands contributed approximately 0% of Marines royalty income for fiscal 2020 and fiscal 2019, as compared to

0.01% of Marines royalty income in fiscal 2018.

The following table shows the number of wells drilled or recompleted on leases in

which Marine has an interest (including its interest in Tidelands) and the number of active wells at the end of each of the past three fiscal years.

Fiscal Year Ended June 30,

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During fiscal 2020, Marine received approximately 89% of

its royalty income from the sale of oil and 9% of its royalty income from the sale of natural gas, as compared to approximately 93% of its royalty income from the sale of oil and 7% of its royalty income from the sale of natural gas in fiscal year

Income from oil and natural gas royalties in fiscal 2019 decreased approximately 3% from fiscal 2018, primarily due to a decrease in production of oil, offset in part by an increase in prices realized for oil and natural gas and the production

of natural gas.

Revenue from oil royalties amounted to $761,232 in fiscal 2019, a decrease from the

its royalty income from the sale of oil and 11% of its royalty income from the sale of natural gas, as compared to approximately 91% of its royalty income from the sale of oil and 9% of its royalty income from the sale of natural gas

in fiscal year 2019.

Income from oil and natural gas royalties in fiscal 2020 decreased approximately 8% from fiscal 2019, primarily due to a decrease in prices realized for oil and natural gas,

offset in part by an increase in production of oil and natural gas.

Revenue from oil royalties amounted to $691,915 in fiscal 2020, a

decrease from the $761,232 realized in fiscal 2019.

The average price realized for a barrel of oil decreased to $54.79 in fiscal 2020 from the $66.85 realized in fiscal 2019.

In fiscal 2020, oil production increased to 12,628 bbls from the

11,382 bbls produced in fiscal 2019.

Revenue from natural gas royalties amounted to $81,913 in fiscal 2020, an increase from the $77,881

realized in fiscal 2019.

In fiscal 2020, the average price per mcf of natural gas decreased to $2.44 from the $3.52 realized in fiscal 2019.

In fiscal 2020, natural gas production increased to 33,639 mcf from the 22,147 mcf produced in fiscal 2019.

General and administrative expenses for fiscal 2020 amounted to $214,075, a decrease from the $226,471 recorded in fiscal 2019,

due to a decrease in professional fees, transfer agent fees and printing expenses.

Fiscal Year 2019 Compared to Fiscal Year 2018 .

During fiscal 2019, Marine received approximately 91% of its royalty income from the sale of oil and 9% of its royalty income from the sale of natural gas, as compared to approximately 93% of its royalty income from the sale of oil and 7% of its

royalty income from the sale of natural gas in fiscal 2018.

Income from oil and natural gas royalties in fiscal 2019 decreased approximately 3% from fiscal 2018, primarily due to a decrease in production of oil and offset in part by an increase in

prices realized for oil and natural gas and the production of natural gas.

Revenue from oil royalties amounted to $761,232 in fiscal

2019, a decrease from the $798,650 realized in fiscal 2018.

The average price realized for a barrel of oil increased to $66.85 in fiscal 2019 from the $50.76 realized in fiscal 2018.

In fiscal 2019, oil production decreased to 11,382 bbls from the 15,138 bbls produced

in fiscal 2018.

Revenue from natural gas royalties amounted to $77,881 in fiscal 2019, an increase from the $64,285 realized in fiscal

In fiscal 2019, oil production decreased to 11,382 bbls from the

15,138 bbls produced in fiscal 2018.

Revenue from natural gas royalties amounted to $77,881 in fiscal 2019, an increase from the $64,285

realized in fiscal 2018.

In fiscal 2019, the average price per mcf of natural gas increased to $3.52 from the $3.10 realized in fiscal 2018.

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an increase in professional fees and printing expenses.

Fiscal Year 2018 Compared to Fiscal Year 2017 .

During fiscal 2018, Marine

received approximately 93% of its royalty income from the sale of oil and 7% of its royalty income from the sale of natural gas, as compared to approximately 90% of its royalty income from the sale of oil and 10% of its royalty income from the sale

of natural gas in fiscal 2017.

Income from oil and natural gas royalties in fiscal 2018 decreased approximately 6% from fiscal 2017, primarily due to a decrease in production of oil and natural gas, offset in part by an increase in prices realized

for oil and natural gas.

Revenue from oil royalties amounted to $798,650 in fiscal 2018, a decrease from the $830,861 realized in fiscal

The average price realized for a barrel of oil increased to $50.76 in fiscal 2018 from the $45.06 realized in fiscal 2017.

In fiscal 2018, oil production decreased to 15,138 bbls from the 18,439 bbls produced in fiscal 2017.

Revenue from natural gas royalties amounted to $64,285 in fiscal 2018, a decrease from the $89,513 realized in fiscal 2017.

In fiscal 2018,

the average price per mcf of natural gas increased to $3.10 from the $2.19 realized in fiscal 2017.

In fiscal 2018, natural gas production decreased to 20,664 mcf from the 40,867 mcf produced in fiscal 2017.

General and administrative expenses for fiscal 2018 amounted to $210,723, an increase from the $198,032 recorded in fiscal 2017, due to an

increase in investor costs, professional fees, operation data services and transfer agent fees, offset in part by a decrease in printing expenses.

Capital Resources and Liquidity .

The Trusts Indenture (and the charter and by-laws of

MPC) expressly prohibits the operation of any kind of trade or business.

Due to the limited purpose of the Trust as stated in the Trusts Indenture, there is no requirement for capital.

Its only obligation is to distribute to unitholders the

distributable income actually collected.

As an administrator of oil and natural gas royalty properties, the Trust collects income

monthly, pays expenses of administration and disburses all distributable income collected to its unitholders each quarter, less an amount reserved for accrued liabilities and estimated future expenses.

Because all of Marines revenues are

invested in liquid funds pending distribution, Marine does not experience liquidity problems.

Marines oil and natural gas

properties are depleting assets and are not being replaced due to the prohibition against these investments.

These restrictions, along with other factors, allow the Trust to be treated as a non-taxable grantor

trust for U.S.

The Trusts Indenture (and the

charter and by-laws of MPC) expressly prohibits the operation of any kind of trade or business.

Due to the limited purpose of the Trust as stated in the Trusts Indenture, there is no requirement for

Its only obligation is to distribute to unitholders the distributable income actually collected.

As an administrator of oil and

natural gas royalty properties, the Trust collects income monthly, pays expenses of administration and disburses all distributable income collected to its unitholders each quarter, less an amount reserved for accrued liabilities and estimated future

Because all of Marines revenues are invested in liquid funds pending distribution, Marine does not experience liquidity problems.

Marines oil and natural gas properties are depleting assets and are not being replaced due to the prohibition against these investments.

These restrictions, along with other factors, allow the Trust to be treated as a non-taxable grantor trust for U.S.

Federal income tax purposes.

Accordingly, all of Marines income and deductions should flow through to its unitholders on a proportionate basis.

Accordingly, all of Marines income and deductions should

flow through to its unitholders on a proportionate basis.

MPC will owe U.S.

Federal (and state) income taxes with respect to its income after

deducting statutory depletion.

MPCs income specifically excludes 98% of oil and natural gas royalties collected by MPC, which are retained by and delivered to the Trust in respect of the Trusts net profits interest.

The Trust does not currently have any long term contractual obligations, other than the obligation to make distributions to unitholders

pursuant to the Indenture.

The Trust does not maintain any off-balance sheet arrangements within the meaning of Item 303 of Regulation S-K.

Federal (and state) income taxes with respect to its income after deducting statutory depletion.

MPCs income specifically excludes 98% of oil and natural gas

royalties collected by MPC, which are retained by and delivered to the Trust in respect of the Trusts net profits interest.

Trust does not currently have any long term contractual obligations, other than the obligation to make distributions to unitholders pursuant to the Indenture.

The Trust does not maintain any off-balance sheet

arrangements within the meaning of Item 303 of Regulation S-K.

Forward-Looking Statements .

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expected results because of factors, risks and uncertainties including, but not limited to, the following:

reductions in prices or demand for oil and natural gas, which might then lead to decreased production or impair Marines ability to make

distributions;

reductions in production due to the depletion of existing wells or disruptions in service, which may be caused by storm damage to production facilities, blowouts or other production accidents, or geological changes such as cratering

of productive formations;

reductions in prices or demand for oil and natural gas, due to, for example, the COVID-19 pandemic or

the oversupply of crude oil driven by a dispute between members of OPEC and Russia, which might then lead to decreased production or impair Marines ability to make distributions;

reductions in production due to the depletion of existing wells

or disruptions in service, which may be caused by storm damage to production facilities, blowouts or other production accidents, or geological changes such as cratering of productive formations;

changes in regulations;

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the resignation of the Trustee;

and the expiration,

termination or release of leases subject to Marines interests.

Events may occur in the future that Marine is unable to accurately predict, or over which it has no control.

If one or more of these uncertainties as well as other risks of which

we are not aware materialize, or if underlying assumptions prove incorrect, actual outcomes may vary materially from those contained in the forward-looking statements included in this Annual Report on Form

Marine has an Internet website and has made available its Annual

Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to such reports, filed or

furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, at www.marps-marine.com.

Each of these reports will be posted on this website as soon as reasonably practicable after such report is electronically filed with or furnished to the

and the expiration, termination or release of leases subject to Marines interests.

occur in the future that Marine is unable to accurately predict, or over which it has no control.

If one or more of these uncertainties as well as other risks of which we are not aware materialize, or if underlying assumptions prove incorrect,

actual outcomes may vary materially from those contained in the forward-looking statements included in this Annual Report on Form 10-K.

Marine has an Internet website and has made available its Annual Reports on Form

10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to such reports, filed or furnished pursuant to

Section 13(a) or 15(d) of the Exchange Act, at www.marps-marine.com.

Each of these reports will be posted on this website as soon as reasonably practicable after such report is electronically filed with or furnished to the SEC.

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-K

Item 5. Market for Registrant’s Common Equity