What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2023-09-26 compared with 2022-08-31 · 64 added, 60 removed, 116 unchanged (52% of the section changed)

4 unchanged sentences

units of beneficial interest.

On August 15, 2022, these outstanding units of record were held by 203 unitholders.

On September 1, 2023, these outstanding units of record were held by 195 unitholders.

There were no changes in the number of outstanding units of beneficial interest during the fiscal year ended June 30, 2023.

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Written requests should be directed to Mr.

Hooper, Simmons Bank, 2911 Turtle Creek Blvd., Suite 850, Dallas, Texas, 75219.

Hooper, Argent Trust Company, 3838 Oak Lawn Avenue, Suite 1720, Dallas, Texas, 75219.

TRUSTEES DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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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 Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts.

preparation of financial statements in conformity with the modified cash basis method of accounting requires the Trustee to make various estimates and assumptions that affect the reported amount of liabilities at the date of the financial statements

and the reported amount of expenses during the reporting period.

Actual results may differ from such estimates.

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 and revenue streams related solely to oil and gas royalties.

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 parent company of Southwest Bank.

SFNC is the parent of Simmons Bank.

SFNC merged Southwest Bank, the former corporate Trustee of the Trust, with Simmons Bank effective February 20, 2018.

term Trustee as used herein shall refer to Southwest Bank for periods through February 19, 2018 and to Simmons Bank for periods on and after February 20, 2018.

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

Accounting Bulletin Topic 12:E, Financial Statements of Royalty Trusts.

The preparation of financial statements in conformity with the modified cash basis method of

accounting requires the Trustee to make various estimates and assumptions that affect the reported amount of liabilities at the date of the financial statements and the reported amount of expenses during the reporting period.

Actual results may

differ from such estimates.

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 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, SFNC completed its acquisition of First Texas BHC, Inc., the parent company of Southwest Bank.

parent of Simmons.

SFNC merged Southwest Bank, the former corporate trustee of the Trust, with Simmons effective February 20, 2018.

Effective December 30, 2022, Argent Trust Company succeeded Simmons as the corporate trustee of the Trust

following Simmons resignation as trustee.

The defined term Trustee as used herein shall refer to Simmons for periods on and after February 20, 2018 through December 29, 2022, and to Argent Trust Company for periods on and after

December 30, 2022.

Results of Operations.

Marines revenues are derived from the oil and natural gas production activities of third parties.

Marines revenues and distributions fluctuate from period to period based upon factors beyond Marines control, including, without limitation, the number of leases subject to Marines interests, the number of productive wells drilled

on leases subject to Marines interests, the level of production over time from such wells and the prices at which the oil and natural gas from such wells are sold.

Marines revenues are derived from the oil and natural gas production

activities of third parties.

of productive wells drilled on leases subject to Marines interests, the level of production over time from such wells and the prices at which the oil and natural gas from such wells are sold.

Marines results of operations are significantly impacted by oil and natural gas prices and the quantity of oil and natural gas

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In general, Marine receives royalties two months after oil production and three months after natural gas production.

The June 2022 distribution of $0.20 per unit increased from the March 2022 distribution of $0.11 per unit.

The June 2023 distribution of $0.11 per unit decreased from the March 2023 distribution of $0.16 per unit.

As disclosed in a press

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Distributions to unitholders are calculated and paid out net of reserve for future expenses, which are estimated by the Trustee on a quarterly basis.

There was no income from the Trusts interest in Tidelands for fiscal years 2021 and 2020.

However, Marine received $93,134 as a final

distribution from Tidelands during the fiscal year ended June 30, 2022.

The following table shows the number of wells drilled or

recompleted on leases in which Marine has an interest and the number of active wells at the end of each of the past three fiscal years.

There was no income from the Trusts interest in Tidelands for fiscal year 2021.

However, Marine received $93,134 as a final distribution

from Tidelands during the fiscal year ended June 30, 2022.

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

Marine has an interest 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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Natural gas royalties

Net quantities

Net quantities sold:

Natural gas (mcf)

Average price:

Oil (per bbl) (1)

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its royalty income from the sale of oil and 5% 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 2022 increased approximately 249% from fiscal 2021, primarily due to an increase in prices realized for oil and natural gas in addition to an increase in production of oil and natural gas

resulting from an opening up of production.

Income from oil and natural gas royalties in fiscal 2023 increased approximately 19% from fiscal 2022, primarily due to an increase in prices realized for oil and natural gas in addition to an increase in production of oil resulting from an

opening up of oil production.

Revenue from oil royalties amounted to $1,523,466 in fiscal 2023, an increase from the $1,259,133

1 unchanged sentence

The average price realized for a barrel of oil increased to $90.59 in fiscal 2023 from the $78.23 realized in fiscal 2022.

In fiscal 2022, oil production increased to 16,096 bbls from the 9,085 bbls produced

in fiscal 2021.

Revenue from natural gas royalties amounted to $89,121 in fiscal 2022, an increase from the $23,905 realized in fiscal

In fiscal 2022, the average price per mcf of natural gas increased to $5.86 from the $2.80 realized in fiscal 2021.

In fiscal 2022, natural gas production increased to 15,221 mcf from the 8,539 mcf produced in fiscal 2021.

In fiscal 2023, oil production increased to 16,817 bbls from the 16,096 bbls produced in fiscal

Revenue from natural gas royalties amounted to $86,416 in fiscal 2023, a decrease from the $89,121 realized in fiscal 2022.

fiscal 2023, the average price per mcf of natural gas increased to $6.80 from the $5.86 realized in fiscal 2022.

In fiscal 2023, natural gas production decreased to 12,712 mcf from the 15,221 mcf produced in fiscal 2022.

General and administrative expenses for fiscal 2023 amounted to $273,526, an increase from the $237,747 recorded in fiscal 2022, due to

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income from the sale of natural gas in fiscal year 2021.

Income from oil and natural gas royalties in fiscal 2021 decreased approximately 50% from fiscal 2020, primarily due to a decrease in prices realized for oil in addition to a decrease in

production of oil and natural gas resulting from a shutdown of production.

Revenue from oil royalties amounted to $362,751 in fiscal

2021, a decrease from the $691,915 realized in fiscal 2020.

The average price realized for a barrel of oil decreased to $39.93 in fiscal 2021 from the $54.79 realized in fiscal 2020.

In fiscal 2021, oil production decreased to 9,085 bbls from the

12,628 bbls produced in fiscal 2020.

Revenue from natural gas royalties amounted to $23,905 in fiscal 2021, a decrease from the

Income from oil and natural gas royalties in fiscal 2022 increased approximately 249% from fiscal 2021, primarily due to an increase in prices realized for oil and natural gas in addition to

an increase in production of oil and natural gas resulting from an opening up of production.

Revenue from oil royalties amounted to

$1,259,133 in fiscal 2022, an increase from the $362,751 realized in fiscal 2021.

The average price realized for a barrel of oil increased to $78.23 in fiscal 2022 from the $39.93 realized in fiscal 2021.

In fiscal 2022, oil production

increased to 16,096 bbls from the 9,085 bbls produced in fiscal 2021.

Revenue from natural gas royalties amounted to $89,121 in fiscal 2022, an increase from the

$23,905 realized in fiscal 2021.

In fiscal 2022, the average price per mcf of natural gas increased to $5.86 from the $2.80 realized in fiscal 2021.

In fiscal 2021, natural gas production decreased to 8,539 mcf from the 33,639 mcf produced in fiscal

In fiscal 2022, natural gas production increased to 15,221 mcf from the 8,539 mcf produced in fiscal

General and administrative expenses for fiscal 2022 amounted to $237,747, an increase from the $225,237 recorded in fiscal

due to an increase in professional fees, transfer agent fees and printing expenses.

2021, due to an increase in professional fees, investor fees and printing expenses.

Capital Resources and Liquidity .

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reductions in prices or demand for oil and natural gas, due to, for

example, the COVID-19 pandemic, 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;

example, the COVID-19 pandemic or other pandemics, 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;

general economic conditions;

general economic

actions and policies of petroleum producing nations;

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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.

Except as required by applicable securities laws, Marine does not

undertake any obligation to update or revise any forward-looking statements.

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.

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 10-K.

Except as required by applicable securities laws, Marine does

not undertake any obligation to update or revise any forward-looking statements.

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

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