What changed in this filing

/stocks — the workspaceLOADING

Item 1A. Risk Factors

2026-02-12 compared with 2025-11-13 · 72 added, 48 removed, 213 unchanged (36% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED STATE MENTS OF ASSETS, LIABILITIES AND TRUST CORPUS

As of September 30, 2025 and June 30, 2025

September 30,

As of December 31, 2025 and June 30, 2025

Current assets:

11 unchanged sentences

CONDENSED CONSOLIDATED STATE MENTS OF DISTRIBUTABLE INCOME

For the Three Months Ended September 30, 2025 and 2024

For the Three Months and Six Months Ended December 31, 2025 and 2024

Three Months Ended

September 30,

Six Months Ended

Oil and natural gas royalties

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TRUST CORPUS

For the Three Months Ended September 30, 2025 and 2024

For the Six Months Ended December 31, 2025 and 2024

Six Months Ended

Trust corpus, beginning of period

Distributable income

Distributions to unitholders

Trust corpus, end of period

Distributions per unit

For the Three Months Ended December 31, 2025 and 2024

Three Months Ended

September 30,

Trust corpus, beginning of period

6 unchanged sentences

NOTES TO CONDENSED CONSOLID ATED FINANCIAL STATEMENTS

September 30, 2025

December 31, 2025

Accounting Policies

9 unchanged sentences

Royalty income is recognized in the month when received by Marine rather than in the month of production.

Marine’s expenses (including accounting, legal, other professional fees, trustee's fees and out-of-pocket expenses) are recorded on an actual paid basis in the month paid rather than in the month incurred.

Marine’s expenses (including accounting, legal, other professional fees, trustee’s fees and out-of-pocket expenses) are recorded on an actual paid basis in the month paid rather than in the month incurred.

Reserves for liabilities that are contingent or uncertain in amount may also be established if considered necessary, which would not be recorded under GAAP.

9 unchanged sentences

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 September 30, 2025 was $84,500.

Total estimated reserve for future expenses deducted from calculated distributable income for the three months ended December 31, 2025, was $110,000.

As stated under “Note 1.

8 unchanged sentences

For the Three Months Ended

September 30,

For the Six Months Ended

Argent Trust Company

33 unchanged sentences

Notwithstanding the foregoing, the middlemen holding Trust units on behalf of unitholders, and not the Trustee of the Trust, are solely responsible for complying with the information reporting requirements under the U.S.

Treasury Regulations with respect to such Trust units, including the issuance of IRS Forms 1099 and certain written tax statements.

Treasury Regulations with respect to such Trust units, including the issuance of Internal Revenue Service Forms 1099 and certain written tax statements.

Unitholders whose Trust units are held by middlemen should consult with such middlemen regarding the information that will be reported to them by the middlemen with respect to the Trust units.

Each unitholder should consult its own tax advisor regarding Trust tax compliance matters.

Each unitholder should consult their own tax advisor regarding Trust tax compliance matters.

Commodity Prices

2 unchanged sentences

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

political conditions worldwide, and in particular, political disruptions, terrorist activities, wars or other armed conflicts in oil producing regions, including the Middle East and Eastern Europe;

political conditions worldwide, and in particular, political disruptions, terrorist activities, wars or other armed conflicts in oil producing regions, Eastern Europe, the Middle East and South America;

worldwide economic conditions;

19 unchanged sentences

The Trust’s oil and natural gas properties are depleting assets that are not being replaced due to the prohibition against investments.

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

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

federal income tax purposes.

A grantor trust is not subject to tax at the trust level.

As a grantor trust, unitholders are taxed directly on their proportionate share of income, deduction and credit of the Trust consistent with each such unitholder's tax status and applicable facts as though no trust were in existence.

As a grantor trust, unitholders are taxed directly on their proportionate share of income, deduction and credit of the Trust consistent with each such unitholder’s tax status and applicable facts as though no trust were in existence.

The State of Texas imposes a franchise tax, but the Trust does not believe that it is subject to the franchise tax because at least 90% of its federal gross income is from passive sources.

Please see Marine’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for further information.

MPC is a taxable entity that pays state and U.S.

MPC is a taxable entity that may owe state and U.S.

federal income taxes and state franchise taxes.

1 unchanged sentence

Each unitholder should consult its own tax advisor regarding income and franchise tax requirements, if any, applicable to such person’s ownership of Trust units.

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 September 30, 2025, Marine had an overriding royalty interest in 19 different oil and natural gas leases covering an aggregate of 87,646 gross acres.

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, 2025, Marine had an overriding royalty interest in 19 different oil and natural gas leases covering an aggregate of 87,646 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.

13 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 months ended September 30, 2025.

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

Please see Marine’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 for a detailed discussion of its critical accounting policies.

New Accounting Pronouncements

Since the Trust financial statements are prepared on a modified-cash basis, most accounting pronouncements are not applicable to the Trust.

Since the Trust’s financial statements are prepared on a modified-cash basis, most accounting pronouncements are not applicable to the Trust.

No new accounting pronouncements have been adopted or issued that would have a significant impact on Marine’s financial statements.

4 unchanged sentences

The oil and natural gas companies that lease tracts subject to Marine’s interests are responsible for the production and sale of oil and natural gas and the calculation of royalty payments to Marine.

The only obligation of the working interest owners to Marine is to make monthly overriding royalty payments that reflect Marine’s interest in the oil and natural gas sold.

The only obligation of the working interest owners to Marine is to make monthly overriding royalty payments that

reflect Marine’s interest in the oil and natural gas sold.

Marine’s distributions are processed and paid by its transfer agent, Equiniti Trust Company.

4 unchanged sentences

Summary of Operating Results

During the three months ended September 30, 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 three months ended September 30, 2024, the Trust realized approximately 92% of its royalty income from the sale of oil and approximately 8% of its royalty income from the sale of natural gas and natural gas liquids.

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

Distributable income per unit for the three months ended September 30, 2025 was $0.07 as compared to $0.12 for the comparable period in 2024.

Distributions per unit also amounted to $0.07 per unit for the three months ended September 30, 2025, a decrease from distributions of $0.09 per unit for the comparable period in 2024.

For the three months ended September 30, 2025, oil production decreased to 3,226 barrels (bbls) from 3,265 bbls for the comparable period in 2024.

Natural gas volumes sold decreased to 3,567 thousand cubic feet (mcf) from 5,095 mcf and natural gas liquids sold decreased to 6,290 mcf from 8,437 mcf for the three months ended September 30, 2025, as compared to the same period in 2024.

For the three months ended September 30, 2025, the average price realized for oil decreased to $63.52 per barrel (bbl) as compared to the price of $81.11 per bbl realized for the comparable period in 2024.

During the six month period ending December 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 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.

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, 2025, was $0.16 as compared to $0.16 for the comparable period in 2024.

Distributions per unit also amounted to $0.12 per unit for the six months ended December 31, 2025, a decrease from distributions of $0.20 per unit for the comparable period in 2024.

For the six months ended December 31, 2025, oil production increased to 7,090 barrels (bbls) from 5,263 bbls for the comparable period in 2024.

Natural gas volumes sold decreased to 7,218 thousand cubic feet (mcf) from 8,438 mcf and natural gas liquids sold decreased to 13,657 mcf from 14,930 mcf for the six months ended December 31, 2025, as compared to the same period in 2024.

For the six months ended December 31, 2025, the average price realized for oil decreased to $64.15 per barrel (bbl) as compared to the price of $79.17 per bbl realized for the comparable period in 2024.

The average price realized for natural gas (net of expenses) increased to $3.02 per mcf as compared to the average price of $2.43 per mcf realized for the comparable period in 2024, and the average price realized for natural gas liquids (net of expenses) decreased to $0.38 per mcf as compared to the average price of $0.56 per mcf realized for the comparable period in 2024.

Results of Operations—Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

Income from oil and natural gas royalties decreased to $218,526 during the three months ended September 30, 2025 from $286,498 realized for the comparable period in 2024.

Royalties decreased for the three months ended September 30, 2025 as compared to the comparable period in 2024 primarily due to decreases in the prices of oil and natural gas liquids and decreases in production of oil, natural gas, and natural gas liquids, partially offset by higher natural gas pricing.

Distributable income decreased to $130,813 for the three months ended September 30, 2025 from $233,552 realized for the comparable period in 2024.

Income from oil royalties, for the three months ended September 30, 2025 decreased to $204,913 from $264,786 realized for the comparable period in 2024.

The volume of oil sold in the three months ended September 30, 2025 decreased to 3,226 bbls from 3,265 bbls realized for the comparable period in 2024, and the average price realized for oil decreased to $63.52 per bbl for the three months ended September 30, 2025 from $81.11 per bbl realized for the comparable period in 2024.

Income from natural gas royalties (net of expenses), for the three months ended September 30, 2025 decreased to $11,194 from $15,362 for the comparable period in 2024.

The volume of natural gas sold in the three months ended September 30, 2025 decreased to 3,567 mcf from 5,095 mcf realized for the comparable period in 2024, and the average price realized for natural gas (net of expenses) increased to $3.14 per mcf for the three months ended September 30, 2025 from $3.02 per mcf realized for the comparable period in 2024.

Income from natural gas liquids royalties (net of expenses), for the three months ended September 30, 2025 decreased to $2,419 from $6,350 for the comparable period in 2024.

The volume of natural gas liquids sold in the three months ended September 30, 2025 decreased to 6,290 mcf from 8,437 mcf realized for the comparable period in 2024, and the average price realized for natural gas liquids

(net of expenses) decreased to $0.38 per mcf for the three months ended September 30, 2025 from $0.75 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 September 30, 2025, and those realized for the comparable period in 2024.

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

Income from oil and natural gas royalties increased to $263,371 during the three months ended December 31, 2025, from $159,064 realized for the comparable period in 2024.

Royalties increased for the three months ended December 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, along with higher natural gas and natural gas liquids prices;

partially offset by lower oil prices.

The increase in production for 2025 is due to the fact that a check from one remitter was not received and processed by the deadline to be included in the three months ended December 31, 2024 oil and natural gas royalty income.

Distributable income increased to $191,844 for the three months ended December 31, 2025, from $81,138 realized for the comparable period in 2024.

Income from oil royalties, for the three months ended December 31, 2025, increased to $249,975 from $151,919 realized for the comparable period in 2024.

The volume of oil sold in the three months ended December 31, 2025, increased to 3,864 bbls from 1,999 bbls realized for the comparable period in 2024, and the average price realized for oil decreased to $64.68 per bbl for the three months ended December 31, 2025, from $76.01 per bbl realized for the comparable period in 2024.

Income from natural gas royalties (net of expenses), for the three months ended December 31, 2025, increased to $10,574 from $5,090 for the comparable period in 2024.

The volume of natural gas sold in the three months ended December 31, 2025, increased to 3,651 mcf from 3,343 mcf realized for the comparable period in 2024, and the average price realized for natural gas (net of expenses) increased to $2.90 per mcf for the three months ended December 31, 2025, from $1.52 per mcf realized for the comparable period in 2024.

Income from natural gas liquids royalties (net of expenses), for the three months ended December 31, 2025, increased to $2,822 from $2,054 for the comparable period in 2024.

The volume of natural gas liquids sold in the three months ended December 31, 2025, increased to 7,367 mcf from 6,493 mcf realized for the comparable period in 2024, and the average price realized for natural gas liquids (net of expenses) increased to $0.38 per mcf for the three months ended December 31, 2025, from $0.32 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 December 31, 2025, and those realized for the comparable period in 2024.

Three Months Ended

September 30,

Average price

2 unchanged sentences

Average price

General and administrative expenses increased to $92,589 for the three months ended September 30, 2025 from $68,640 for the comparable period of 2024, primarily due to the timing of payment of professional fees.

General and administrative expenses decreased to $76,335 for the three months ended December 31, 2025 from $84,758 for the comparable period of 2024, primarily due to the timing of payment of professional fees.

Results of Operations—Six Months Ended December 31, 2025 Compared to the Six Months Ended December 31, 2024

Income from oil and natural gas royalties increased to $481,897 during the six months ended December 31, 2025, from $445,562 realized for the comparable period in 2024.

Royalties increased for the six months ended December 31, 2025, primarily due to an increase in production of oil, and natural gas prices, offset somewhat by decreases in the price of oil and natural gas liquids, as well as decreases in the production of natural gas and natural gas liquids.

Distributable income increased to $322,658 for the six months ended December 31, 2025 from $314,690 realized for the comparable period in 2024.

Income from oil royalties for the six months ended December 31, 2025, increased to $454,888 from $416,705 realized for the comparable period in 2024.

The volume of oil sold in the six months ended December 31, 2025, increased to 7,090 bbls from 5,263 bbls realized for the comparable period in 2024, and the average price realized for oil decreased to $64.15 per bbl for the six months ended December 31, 2025, from $79.17 per bbl realized for the comparable period in 2024.

Income from natural gas royalties (net of expenses) for the six months ended December 31, 2025, increased to $21,764 from $20,474 for the comparable period in 2024.

The volume of natural gas sold in the six months ended December 31, 2025, decreased to 7,218 mcf from 8,438 mcf realized for the comparable period in 2024, and the average price realized for natural gas (net of expenses) increased to $3.02 per mcf for the six months ended December 31, 2025, from $2.43 per mcf realized for the comparable period in 2024.

Income from natural gas liquids royalties (net of expenses), for the six months ended December 31, 2025, decreased to $5,245 from $8,383 for the comparable period in 2024.

The volume of natural gas liquids sold in the six months ended December 31, 2025, decreased to 13,657 mcf from 14,930 mcf realized for the comparable period in 2024, and the average price realized for natural gas liquids (net of expenses) decreased to $0.38 per mcf for the six months ended December 31, 2025, from $0.56 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 six months ended December 31, 2025, and those realized for the comparable period in 2024.

Six Months Ended

Average price

Average price, net of expenses

Natural Gas Liquids

Average price

General and administrative expenses increased to $168,924 for the six months ended December 31, 2025 from $153,398 for the comparable period of 2024, primarily due to the timing of payment of professional fees.

Forward-Looking Statements

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reductions in price or demand for oil and natural gas, which might then lead to decreased production or impair Marine’s ability to make distributions;

the impact of public health concerns, such as COVID-19, on future production and 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;

3 unchanged sentences

other changes in domestic and international energy markets;

the impact of pandemics or other public health concerns;

and the expiration, termination or release of leases subject to Marine’s interests.

12 unchanged sentences

Argent Trust Company, as Trustee of the Trust, is responsible for establishing and maintaining Marine’s disclosure controls and procedures.

Marine’s disclosure controls and procedures include controls and other procedures that are designed to ensure that information required to be disclosed by Marine in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

summarized and reported within the time periods specified in the SEC’s rules and forms.

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by Marine in the reports that it 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 September 30, 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 September 30, 2025.

As of December 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 December 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 September 30, 2025 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 December 31, 2025, that have materially affected, or are reasonably likely to materially affect, Marine’s internal control over financial reporting.

OT HER INFORMATION

5 unchanged sentences

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