What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-05-16 compared with 2022-02-14 · 106 added, 107 removed, 252 unchanged (46% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

As of December 31, 2021 and June 30, 2021

As of March 31, 2022 and June 30, 2021

Current assets:

11 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME

For the Three and Six Months Ended December 31, 2021 and 2020

For the Three and Nine Months Ended March 31, 2022 and 2021

Three Months Ended

Six Months Ended

Nine Months Ended

Oil and natural gas royalties

Oil and natural gas royalties from affiliate

Interest and dividend income

Oil and natural gas royalties from

Interest and dividend income (loss)

General and administrative

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TRUST CORPUS

For the Six Months Ended December 31, 2021 and 2020

Six Months Ended

For the Nine Months Ended March 31, 2022 and 2021

Nine Months Ended

Trust corpus, beginning of period

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TRUST CORPUS

For the Three Months Ended December 31, 2021 and 2020

For the Three Months Ended March 31, 2022 and 2021

Three Months Ended

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021

March 31, 2022

Accounting Policies

30 unchanged sentences

Total estimated reserve for future expenses deducted from

calculated distributable income for the three months ended December 31, 2021 was $50,000.

calculated distributable income for the three months ended March 31, 2022 was $86,500.

As stated under Note 1.

7 unchanged sentences

Investment in Affiliate Tidelands Royalty Trust B

At December 31, 2021 and 2020, the Trust owned 32.6% of the outstanding units of beneficial interest in Tidelands.

The following summary financial statements have been derived from the unaudited condensed consolidated financial statements of Tidelands:

At March 31, 2022 and 2021, the Trust owned 32.6% of the outstanding units of beneficial interest in Tidelands.

The final distribution

from Tidelands was $93,134 and was received in February 2022.

The following summary financial statements have been derived from the

unaudited condensed consolidated financial statements of Tidelands:

TIDELANDS CONDENSED CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME

7 unchanged sentences

Form 8-K, respectively, were automatically and immediately suspended.

The last distribution Marine received from Tidelands was in the fourth quarter of 2018.

The last regular distribution Marine received from Tidelands was in the fourth quarter of 2018.

The term of Tidelands expired in

Tidelands is currently in the process of winding up and has declared January 31, 2022 as the record date for the final distribution of $0.205883 per unit, which is expected to be paid on February 14, 2022.

Trustees Discussion and Analysis of Financial Condition and Results of Operations

Marine Petroleum Trust (the

Trust) is a royalty trust that was created in 1956 under the laws of the State of Texas.

Effective February 20, 2018, Simmons Bank became corporate trustee of the Trust (the Trustee) as a result of a merger between

Simmons Bank and Southwest Bank, the former corporate Trustee of the Trust.

On November 4, 2021, Simmons Bank, announced that it had entered into an agreement with Argent Trust Company, a Tennessee chartered trust company (Argent),

pursuant to which the Trustee will be resigning as trustee of the Trust and will nominate Argent as successor trustee of the Trust.

The Trustees resignation as trustee, and Argents appointment as successor trustee, are subject to certain

conditions set forth in the agreement, including approval by the unitholders of the Trust and of certain other trusts of which Simmons Bank acts as trustee (or a court) of (i) Argents appointment as successor trustee and (ii) any

amendments to the Trusts Indenture (the Indenture) and the trust agreements and indentures of the other trusts necessary to permit Argent to serve as successor trustee.

The 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.

Tidelands has been wound up and declared January

31, 2022 as the record date for the final distribution which was paid in February 2022.

Discussion and Analysis of Financial Condition and Results of Operations

Marine Petroleum Trust (the Trust) is a royalty trust that was created in 1956 under the laws of the State of Texas.

February 20, 2018, Simmons Bank became corporate trustee of the Trust (the Trustee) as a result of a merger between Simmons Bank and Southwest Bank, the former corporate Trustee of the Trust.

On November 4, 2021, Simmons Bank,

announced that it had entered into an agreement with Argent Trust Company, a Tennessee chartered trust company (Argent), pursuant to which the Trustee will be resigning as trustee of the Trust and will nominate Argent as successor

trustee of the Trust.

The Trustees resignation as trustee, and Argents appointment as successor trustee, are subject to certain conditions set forth in the agreement, including approval by the unitholders of the Trust and of certain

other trusts of which Simmons Bank acts as trustee (or a court) of (i) Argents appointment as successor trustee and (ii) any amendments to the Trusts Indenture (the Indenture) and the trust agreements and indentures

of the other trusts necessary to permit Argent to serve as successor trustee.

On March 21, 2022, the unitholders of the Trust, by way of written consent, voted (i) to approve the appointment of Argent as successor trustee to serve as

trustee of the Trust once the resignation of Simmons Bank takes effect and (ii) to not approve an amendment to the Indenture to permit a national bank or trust company having its principal office in the United States and having an unimpaired

capital and surplus of at least $3,000,000.00 to serve as trustee of the Trust.

Therefore, Argent has not taken over as successor trustee.

The 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

34 unchanged sentences

Commodity prices may fluctuate widely in response

to (i) relatively minor changes in the supply of and demand for oil and natural gas,

(ii) market uncertainty and (iii) a variety of additional

factors that are beyond the Trustees control.

Factors that may impact future commodity prices, including the price of oil and natural gas, include but are not limited to:

political conditions in major oil producing regions, especially in the Middle East;

to (i) relatively minor changes in the supply of and demand for oil and natural gas, (ii) market uncertainty and (iii) a variety of additional factors that are beyond the Trustees control.

Factors that may impact future commodity

prices, including the price of oil and natural gas, include but are not limited to:

political conditions in major oil producing regions, especially in the Middle East and Russia;

worldwide economic conditions;

38 unchanged sentences

The public records available up to the date of this

report indicate that there were no new well completions made during the three months ended December 31, 2021 on leases in which Marine has an interest.

As of February 1, 2022, public records also indicated that there were no wells in the

process of being drilled or recompleted on other leases in which Marine has an interest.

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 55 leases covering 199,868 gross acres located in the Gulf of Mexico.

Marines overriding royalty interest applies only to

existing leases and does not apply to any new leases that the Interest Owners may acquire.

The Trust also owns a 32.6% interest in Tidelands Royalty Trust B (Tidelands).

As a result of this ownership, the Trust has the right to receive periodic distributions from Tidelands to the extent Tidelands makes distributions to its unitholders.

The term of Tidelands expired in 2021.

Tidelands is currently in the process of

winding up and has declared January 31, 2022 as the record date for the final distribution of $0.205883 per unit, which is expected to be paid on February 14, 2022.

Accordingly, after the distribution is received, we do not expect any

other income from Tidelands.

report indicate that there were no new well completions made during the three months ended March 31, 2022 on leases in which Marine has an interest.

As of May 1, 2022, public records also indicated that there were no wells in the process

of being drilled or recompleted on other leases in which Marine has an interest.

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 55 leases covering 199,868 gross acres located in the Gulf of Mexico.

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

Critical Accounting Policies and Estimates

7 unchanged sentences

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, 2021.

Marine did not have any changes in its critical accounting policies or estimates during the three and nine months ended March 31, 2022.

Please see Marines Annual Report on Form 10-K for the fiscal year ended June 30, 2021 for a detailed discussion of its critical accounting policies.

23 unchanged sentences

Summary of Operating Results

six months ended December 31, 2021, the Trust realized approximately 93% of its royalty income from the sale of oil and approximately 7% of its royalty income from the sale of natural gas.

During the six months ended December 31, 2020, the

nine months ended March 31, 2022, the Trust realized approximately 93% of its royalty income from the sale of oil and approximately 7% of its royalty income from the sale of natural gas.

During the nine months ended March 31, 2021, the

Trust realized approximately 95% of its royalty income from the sale of oil and approximately 5% of its royalty income from the sale of natural gas.

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

Distributable income per unit for the six months ended December 31, 2021 was $0.19 as

compared to $0.02 for the comparable period in 2020.

Distributions per unit amounted to $0.17 per unit for the six months ended December 31, 2021, an increase from distributions of $0.05 per unit for the comparable period in 2020.

six months ended December 31, 2021, the difference between distributable income per unit and distributions per unit resulted from timing differences between the closing of the financial statements and the determination date of the distribution

amount to unitholders.

For the six months ended December 31, 2021, oil production increased to 6,917 barrels (bbls) from 4,659 bbls

and natural gas production increased to 6,775 thousand cubic feet (mcf) from 4,118 mcf as compared to the comparable period in 2020.

For the six months ended December 31, 2021, the average price realized for oil increased to $66.06 per bbl

as compared to the price of $31.70 realized for the comparable period in 2020 and the average price realized for natural gas (net of expenses) increased to $5.46 per mcf as compared to the average price of $1.82 realized for the comparable period in

The following table presents the net production quantities of oil and natural gas and distributable income and distributions per

unit for the last six quarters.

Distributable income per unit for the nine months ended March 31, 2022 was $0.39 as compared to $0.02 for the comparable period in 2021.

Distributions per unit amounted to $0.28 per unit for the nine months ended March 31, 2022, an increase from distributions of $0.07 per unit for the comparable period in 2021.

During the nine months ended March 31, 2022, the difference

between distributable income per unit and distributions per unit resulted from timing differences between the closing of the financial statements and the determination date of the distribution amount to unitholders.

For the nine months ended March 31, 2022, oil production increased to 11,635 barrels

(bbls) from 6,624 bbls and natural gas production increased to 10,457 thousand cubic feet (mcf) from 5,546 mcf as compared to the comparable period in 2021.

For the nine months ended March 31, 2022, the average price realized for oil

increased to $69.30 per bbl as compared to the price of $34.14 realized for the comparable period in 2021 and the average price realized for natural gas (net of expenses) increased to $5.65 per mcf as compared to the average price of $2.08 realized

for the comparable period in 2021.

The following table presents the net production quantities of oil and natural gas and distributable

income and distributions per unit for the last six quarters.

Net Production

3 unchanged sentences

Distributions

September 30, 2020

December 31, 2020

3 unchanged sentences

December 31, 2021

Results of OperationsThree Months Ended December 31, 2021 Compared to the Three Months Ended December 31,

Income from oil and natural gas royalties, increased to $264,692 during the three months ended December 31, 2021 from

$101,545 realized for the comparable period in 2020.

Royalties increased for the three months ended December 31, 2021 as compared to the comparable period in 2020 primarily due to an increase in production of oil and gas, and also by a sharp

increase in pricing of oil and gas.

Distributable income increased to $181,444 for the three months ended December 31, 2021 from

March 31, 2022

Results of OperationsThree Months Ended March 31, 2022 Compared to the Three Months Ended March 31, 2021

Income from oil and natural gas royalties, increased to $371,382 during the three months ended March 31, 2022 from $82,501

realized for the comparable period in 2021.

Income from oil royalties, for the three months ended December 31, 2021 increased

to $248,187 from $97,903 realized for the comparable period in 2020.

The volume of oil sold in the three months ended December 31, 2021 increased to 3,676 bbls from 2,512 bbls realized for the comparable period in 2020, and the average price

realized for oil increased to $67.52 per bbl for the three months ended December 31, 2021 from $38.98 per bbl realized for the comparable period in 2020.

Income from natural gas royalties (net of expenses), for the three months ended December 31, 2021 increased to $16,505 from $3,642 for

the comparable period in 2020.

The volume of natural gas sold in the three months ended

December 31, 2021 increased to 2,967 mcf from 1,965 mcf realized for the comparable period in 2020, and the average price realized for natural gas (net of expenses) increased to $5.56 per

mcf for the three months ended December 31, 2021 from $1.85 per mcf realized for the comparable period in 2020.

We did not receive

any income from distributions from Tidelands for the three months ended December 31, 2021 and 2020.

The following table presents the

quantities of oil and natural gas sold and the average price realized for the three months ended December 31, 2021, and those realized for the comparable period in 2020.

Three Months Ended

Royalties increased for the three months ended March 31, 2022 as compared to the comparable period in 2021 primarily due to an increase in production of oil and natural gas, and also by a sharp

increase in pricing of oil and natural gas.

Distributable income increased to $386,138 for the three months ended March 31, 2022

from $11,241 realized for the comparable period in 2021.

Income from oil royalties, for the three months ended March 31, 2022

increased to $349,357 from $78,468 realized for the comparable period in 2021.

The volume of oil sold in the three months ended March 31, 2022 increased to 4,718 bbls from 1,965 bbls realized for the comparable period in 2021, and the average

price realized for oil increased to $74.05 per bbl for the three months ended March 31, 2022 from $39.94 per bbl realized for the comparable period in 2021.

Income from natural gas royalties (net of expenses), for the three months ended March 31, 2022 increased to $22,025 from $4,033 for the

comparable period in 2021.

The volume of natural gas sold in the three months ended March 31, 2022 increased to 3,681 mcf from 1,428 mcf realized for the comparable period in 2021, and the average price realized for natural gas (net of

expenses) increased to $5.98 per mcf for the three months ended March 31, 2022 from $2.82 per mcf realized for the comparable period in 2021.

We received $93,134 as a final distribution from Tidelands for the three months ended

March 31, 2022.

We did not receive any income from distributions from Tidelands for the three months ended March 31, 2021.

following table presents the quantities of oil and natural gas sold and the average price realized for the three months ended March 31, 2022, and those realized for the comparable period in 2021.

Three Months Ended March 31,

Average price

Average price, net of expenses

General and administrative expenses decreased to $83,263 for the three months ended December 31, 2021

from $96,583 for the comparable period of 2020, primarily due to lower professional and printing costs.

Results of OperationsSix Months Ended

December 31, 2021 Compared to the Six Months Ended December 31, 2020

Income from oil and natural gas royalties, excluding

the Trusts interest in Tidelands, increased to $493,932 during the six months ended December 31, 2021 from $155,185 realized for the comparable period in 2020.

Royalties increased for the six months ended December 31, 2021 primarily

due to an increase in the price and production of oil as well as an increase in the price and production of natural gas.

Distributable

income increased to $384,656 for the six months ended December 31, 2021 from $37,989 realized for the comparable period in 2020.

Income from oil royalties for the six months ended December 31, 2021 increased to $456,916 from $147,699 realized for the comparable

period in 2020.

The volume of oil sold in the six months ended December 31, 2021 increased to 6,917 bbls from 4,659 bbls realized for the comparable period in 2020, and the average price realized for oil increased to $66.06 per bbl for the six

months ended December 31, 2021 from $31.70 per bbl realized for the comparable period in 2020.

Income from natural gas royalties

(net of expenses) for the six months ended December 31, 2021 increased to $37,016 from $7,487 for the comparable period in 2020.

The volume of natural gas sold in the six months ended December 31, 2021 increased to 6,775 mcf from 4,118 mcf

realized for the comparable period in 2020, and the average price realized for natural gas (net of expenses) increased to $5.46 per mcf for the six months ended December 31, 2021 from $1.82 per mcf realized for the comparable period in 2020.

We did not receive any income from distributions from Tidelands for the six months ended December 31, 2021 and 2020.

The following table presents the quantities of oil and natural gas sold and the average

price realized for the six months ended December 31, 2021, and those realized for the comparable period in 2020, excluding the Trusts interest in Tidelands.

Six Months Ended

General and administrative expenses increased to $78,196 for the three months ended March 31, 2022 from

$71,343 for the comparable period of 2021, primarily due to timing of payment of expenses.

Results of OperationsNine Months Ended March 31,

2022 Compared to the Nine Months Ended March 31, 2021

Income from oil and natural gas royalties, excluding the Trusts

interest in Tidelands, increased to $865,314 during the nine months ended March 31, 2022 from $237,686 realized for the comparable period in 2021.

Royalties increased for the nine months ended March 31, 2022 primarily due to an increase in

the price and production of oil and natural gas, as compared to the comparable period in 2021.

Distributable income increased to $770,793

for the nine months ended March 31, 2022 from $49,229 realized for the comparable period in 2021.

Income from oil royalties for the

nine months ended March 31, 2022 increased to $806,273 from $226,167 realized for the comparable period in 2021.

The volume of oil sold in the nine months ended March 31, 2022 increased to 11,635 bbls from 6,624 bbls realized for the

comparable period in 2021, and the average price realized for oil increased to $69.30 per bbl for the nine months ended March 31, 2022 from $34.14 per bbl realized for the comparable period in 2021.

Income from natural gas royalties (net of expenses) for the nine months ended March 31, 2022 increased to $59,041 from $11,519 for the

comparable period in 2021.

The volume of natural gas sold in the nine months ended March 31, 2022 increased to 10,457 mcf from 5,546 mcf realized for the comparable period in 2021, and the average price realized for natural gas (net of

expenses) increased to $5.65 per mcf for the nine months ended March 31, 2022 from $2.08 per mcf realized for the comparable period in 2021.

We received $93,134 as a final distribution from Tidelands for the nine months ended March 31, 2022.

We did not receive any income from

distributions from Tidelands for the nine months ended March 31, 2021.

The following table presents the quantities of oil and

natural gas sold and the average price realized for the nine months ended March 31, 2022, and those realized for the comparable period in 2021, excluding the Trusts interest in Tidelands.

Nine Months Ended March 31,

Average price

Average price, net of expenses

General and administrative expenses decreased to $109,346 for the six months ended December 31, 2021 from

$117,298 for the comparable period of 2020, primarily due to lower professional and printing costs.

General and administrative expenses decreased to $187,541 for the nine months ended March 31, 2022 from

$188,641 for the comparable period of 2021, primarily due to the timing of payment of expenses.

Forward-Looking Statements

27 unchanged sentences

reasonably practicable after such report is electronically filed with, or furnished, to the SEC.

Quantitative and Qualitative Disclosures About Market Risk

There has been no material change from the information provided in

Marines Annual Report on Form 10-K, Item 7A:

and Qualitative Disclosures About Market Risk

There has been no material change from the information provided in Marines

Annual Report on Form 10-K, Item 7A:

Quantitative and Qualitative Disclosures About Market Risk, for the fiscal year ended June 30, 2021.

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