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Item 1. Financial Statements

2023-05-15 compared with 2023-02-14 · 87 added, 84 removed, 273 unchanged (39% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

As of December 31, 2022 and June 30, 2022

As of March 31, 2023 and June 30, 2022

Current assets:

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CONDENSED CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME

For the Three and Six Months Ended December 31, 2022 and 2021

For the Three and Nine Months Ended March 31, 2023 and 2022

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

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, 2022 and 2021

Six Months Ended

For the Nine Months Ended March 31, 2023 and 2022

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, 2022 and 2021

For the Three Months Ended March 31, 2023 and 2022

Three Months Ended

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

March 31, 2023

The financial statements herein include the financial statements of Marine Petroleum Trust (the Trust) and its

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Total estimated reserve for future expenses deducted from

calculated distributable income for the three months ended December 31, 2022 was $109,759.

calculated distributable income for the three months ended March 31, 2023 was $68,000.

As stated under Note 1.

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(iv) dividends paid by MPC, less (v) administrative expenses incurred by the Trust.

Distributions fluctuate from quarter to quarter primarily due to changes in oil and natural gas prices and production quantities and expenses incurred.

Distributions fluctuate from quarter to quarter primarily due to changes in oil and natural gas

prices and production quantities and expenses incurred.

Investment in Affiliate Tidelands Royalty Trust B

At December 31, 2021, the Trust owned 32.6% of the outstanding units of beneficial interest in Tidelands, which entity was wound up prior

to June 30, 2022.

At March 31, 2022, the Trust owned 32.6% of the outstanding units of beneficial interest in Tidelands which entity was wound up prior to

June 30, 2022.

Due to Tidelands being wound up prior to June 30, 2022, there was no market underlying the 452,366 units owned by the Trust at the time Tidelands was wound up.

A reserve of $154,196 has been established for future

reporting and compliance issues that may arise in years to come and will be used for such transactions.

The following summary financial

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

TIDELANDS CONDENSED

CONSOLIDATED STATEMENTS OF DISTRIBUTABLE INCOME

A reserve of $154,196 has been established for future reporting

and compliance issues that may arise in years to come and will be used for such transactions.

The following summary financial statements

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

TIDELANDS CONDENSED CONSOLIDATED

STATEMENTS OF DISTRIBUTABLE INCOME

Ended March 31,

Distributable (loss) before Federal income taxes

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The term of Tidelands expired in

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

Tidelands has been wound up and declared January 31, 2022 as the record date for the final distribution which was paid in February 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.

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Argent Trust Company

2911 Turtle Creek Blvd., Suite 850

Creek Blvd., Suite 850

Dallas, Texas 75219

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Each unitholder should consult its own tax advisor for compliance with U.S.

federal income tax laws and regulations.

federal income tax laws and

Commodity Prices

The Trusts income

and monthly distributions are heavily influenced by commodity prices.

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:

The Trusts income and monthly distributions are heavily influenced by commodity prices.

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, Russia and Ukraine;

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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, 2022 on leases in which Marine has an interest.

As of February 1, 2023, 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.

report indicate that there were no new well completions made during the three months ended March 31, 2023 on leases in which Marine has an interest.

As of May 1, 2023, 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.

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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, 2022.

Marine did not have any changes in its critical accounting policies or estimates during the three and nine months ended March 31, 2023.

Please see Marines Annual Report on Form 10-K for the fiscal year ended June 30, 2022 for a detailed discussion of its critical accounting policies.

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Summary of Operating Results

six months ended December 31, 2022, 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.

During the six months ended December 31, 2021, the

nine months ended March 31, 2023, 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.

During 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.

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

Distributable income per unit for the six months ended December 31, 2022 was $0.45 as compared to $0.19 for the comparable period in

Distributions per unit amounted to $0.51 per unit for the six months ended December 31, 2022, an increase from distributions of $0.17 per unit for the comparable period in 2021.

During the six months ended December 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 six months ended December 31, 2022, oil production increased to 9,499 barrels

(bbls) from 6,917 bbls and natural gas production increased to 7,738 thousand cubic feet (mcf) from 6,775 mcf as compared to the comparable period in 2021.

For the six months ended December 31, 2022, the average price realized for oil

increased to $100.65 per bbl as compared to the price of $66.06 realized for the comparable period in 2021 and the average price realized for natural gas (net of expenses) increased to $8.40 per mcf as compared to the average price of $5.46 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.

Distributable income per unit for the nine months ended March 31, 2023 was $0.56 as compared to $0.39 for the comparable period in 2022.

Distributions per unit amounted to $0.67 per unit for the nine months ended March 31, 2023, an increase from distributions of $0.28 per unit for the comparable period in 2022.

During the nine months

ended March 31, 2023, 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, 2023, oil production increased to

12,888 barrels (bbls) from 11,635 bbls and natural gas production decreased to 9,652 thousand cubic feet (mcf) from 10,457 mcf as compared to the comparable period in 2022.

For the nine months ended March 31, 2023, the average price

realized for oil increased to $95.71 per bbl as compared to the price of $69.30 realized for the comparable period in 2022 and the average price realized for natural gas (net of expenses) increased to $7.89 per mcf as compared to the average price

of $5.65 realized for the comparable period in 2022.

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

4 unchanged sentences

Distributions

September 30, 2021

December 31, 2021

3 unchanged sentences

December 31, 2022

March 31, 2023

(1) Excludes the Trusts interest in Tidelands prior to its being wound up.

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

Income from oil and natural gas royalties, increased to $425,321 during the three months ended December 31, 2022 from $264,692 realized

for the comparable period in 2021.

Royalties increased for the three months ended December 31, 2022 as compared to the comparable period in 2021 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 $378,969 for the three months ended December 31, 2022 from $181,444 realized for

Results of OperationsThree Months Ended March 31, 2023 Compared to the Three Months Ended March 31, 2022

Income from oil and natural gas royalties, decreased to $288,614 during the three months ended March 31, 2023 from $371,382 realized for

the comparable period in 2022.

Income from oil royalties, for the three months ended December 31, 2022 increased to $397,391 from

Royalties decreased for the three months ended March 31, 2023 as compared to the comparable period in 2022 primarily due to a decrease in production of oil and gas, partially offset by an increase in the pricing

Distributable income decreased to $215,803 for the three months ended March 31, 2023 from $386,137 realized for the

comparable period in 2022.

Income from oil royalties, for the three months ended March 31, 2023 decreased to $277,476 from $349,357

realized for the comparable period in 2022.

The volume of oil sold in the three months ended December 31, 2022 increased to 4,311 bbls from 3,676 bbls realized for the comparable period in 2021, and the average price realized for oil

increased to $92.18 per bbl for the three months ended December 31, 2022 from $67.52 per bbl realized for the comparable period in 2021.

Income from natural gas royalties (net of expenses), for the three months ended December 31, 2022 increased to $27,931 from $16,505 for

the comparable period in 2021.

The volume of natural gas sold in the three months ended December 31, 2022 increased to 3,321 mcf from 2,967 mcf realized for the comparable period in 2021, and the average price realized for natural gas (net of

expenses) increased to $8.41 per mcf for the three months ended December 31, 2022 from $5.56 per mcf realized for the comparable period in 2021.

The volume of oil sold in the three months ended March 31, 2023 decreased to 3,390 bbls from 4,718 bbls realized for the comparable period in 2022, and the average price realized for oil increased to

$81.85 per bbl for the three months ended March 31, 2023 from $74.05 per bbl realized for the comparable period in 2022.

natural gas royalties (net of expenses), for the three months ended March 31, 2023 decreased to $11,138 from $22,025 for the comparable period in 2022.

The volume of natural gas sold in the three months ended March 31, 2023 decreased to

1,914 mcf from 3,681 mcf realized for the comparable period in 2022, and the average price realized for natural gas (net of expenses) decreased to $5.82 per mcf for the three months ended March 31, 2023 from $5.98 per mcf realized for the

comparable period in 2022.

Prior to June 30, 2022, Tidelands was wound up and allowed to terminate.

1 unchanged sentence

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

price realized for the three months ended December 31, 2022, and those realized for the comparable period in 2021.

Three Months Ended December 31,

price realized for the three months ended March 31, 2023, and those realized for the comparable period in 2022.

Three Months Ended March 31,

Average price

Average price, net of expenses

General and administrative expenses decreased to $56,160 for the three months ended December 31, 2022

from $83,263 for the comparable period of 2021, primarily due to the timing of payment of professional fees.

Results of OperationsSix Months

Ended December 31, 2022 Compared to the Six Months Ended December 31, 2021

Income from oil and natural gas royalties

increased to $1,021,040 during the six months ended December 31, 2022 from $493,932 realized for the comparable period in 2021.

Royalties increased for the six months ended December 31, 2021 primarily due to an increase in the price and

production of oil and natural gas.

Distributable income increased to $901,338 for the six months ended December 31, 2022 from

General and administrative expenses increased to $84,804 for the three months ended March 31, 2023 from

$78,196 for the comparable period of 2022, primarily due to an increase in professional fees incurred due to the change in Trustee and timing of payment of professional expenses.

Results of OperationsNine Months Ended March 31, 2023 Compared to the Nine Months Ended March 31, 2022

Income from oil and natural gas royalties increased to $1,309,654 during the nine months ended March 31, 2023 from $865,314 realized for

the comparable period in 2022.

Royalties increased for the nine months ended March 31, 2023 primarily due to an increase in the price of oil and natural gas and an increase in the production of oil, partially offset by a decrease in the

production of natural gas.

Distributable income increased to $1,117,141 for the nine months ended March 31, 2023 from $770,793

realized for the comparable period in 2022.

Income from oil royalties for the six months ended December 31, 2022 increased

to $956,030 from $456,916 realized for the comparable period in 2021.

The volume of oil sold in the six months ended December 31, 2022 increased to 9,499 bbls from 6,917 bbls realized for the comparable period in 2021, and the average price

realized for oil increased to $100.65 per bbl for the six months ended December 31, 2022 from $66.06 per bbl realized for the comparable period in 2021.

Income from natural gas royalties (net of expenses) for the six months ended December 31, 2022 increased to $65,010 from $37,016 for the

Income from oil royalties for the nine months ended March 31, 2023 increased to

$1,233,506 from $806,273 realized for the comparable period in 2022.

The volume of oil sold in the nine months ended March 31, 2023 increased to 12,888 bbls from 11,635 bbls realized for the comparable period in 2022, and the average price

realized for oil increased to $95.71 per bbl for the nine months ended March 31, 2023 from $69.30 per bbl realized for the comparable period in 2022.

Income from natural gas royalties (net of expenses) for the nine months ended March 31, 2023 increased to $76,148 from $59,041 for the

comparable period in 2022.

The volume of natural gas sold in the six months ended December 31, 2022 increased to 7,738 mcf from 6,775 mcf realized for the comparable period in 2021, and the average price realized for natural gas (net of

expenses) increased to $8.40 per mcf for the six months ended December 31, 2022 from $5.46 per mcf realized for the comparable period in 2021.

The following table presents the quantities of oil and natural gas sold and the average price realized for the six months ended

December 31, 2022, and those realized for the comparable period in 2021.

Six Months Ended December 31,

The volume of natural gas sold in the nine months ended March 31, 2023 decreased to 9,652 mcf from 10,457 mcf realized for the comparable period in 2022, and the average price realized for natural gas (net of

expenses) increased to $7.89 per mcf for the nine months ended March 31, 2023 from $5.65 per mcf realized for the comparable period in 2022.

The following table presents the quantities of oil and natural gas sold and the average price realized for the nine months ended

March 31, 2023, and those realized for the comparable period in 2022.

Nine Months Ended March 31,

Average price

Average price, net of expenses

General and administrative expenses increased to $134,241 for the six months ended

December 31, 2022 from $109,346 for the comparable period of 2021, primarily due to an increase in professional fees incurred due to the change in Trustee and timing of payment of professional expenses.

General and administrative expenses increased to $219,045 for the nine months ended March 31, 2023 from

$187,541 for the comparable period of 2022, primarily due to an increase in professional fees incurred due to the change in Trustee and timing of payment of professional expenses.

Forward-Looking Statements

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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