Wed, May 14, 8:53 PM (37 days ago)
**ECA Marcellus Trust I (Ticker: ECT)** **Q1 2025 Financial Summary:** **Revenue & Profit Margins:** - Royalty income increased to $1,278,647 from $627,390 in Q1 2024. - Net proceeds to the Trust matched royalty income at $1,278,647. - General and administrative expenses rose to $281,522 from $185,051. - Income available for distribution before reserves was $1,027,940, up from $479,113. - Distributable income available to unitholders was $911,520, more than double the $361,819 from Q1 2024. - Distributable income per common unit was $0.052, up from $0.021. **Cash Flow:** - Cash reserves withheld by the Trustee were $90,000, with an additional $26,420 in interest withheld on cash reserves. - The Trust has been building a cash reserve, with approximately $2.4 million plus $0.2 million of interest withheld as of March 31, 2025. **Earnings Changes & Quarterly Performance:** - Distributable income for Q1 2025 increased to $0.9 million from $0.4 million in Q1 2024. - Royalty income increased by $0.7 million, while general and administrative expenses increased by $0.1 million. - The average sales price realized increased by $1.73 per Mcf, but production decreased by 17.4% due to natural declines. **Trends & Uncertainties:** - The Trust's income is highly dependent on natural gas prices and production volumes, both of which have been volatile. - Geopolitical events, such as the war in Ukraine and tensions in the Middle East, could impact natural gas prices and demand. - The Trust may face early termination if gross proceeds fall below $1.5 million over any four consecutive quarters. **Future Operations Impact:** - The Trust will begin liquidation in March 2030 unless terminated earlier. - Upon termination, 50% of the royalty interests will revert to Greylock Production, and the remaining 50% will be sold, with proceeds distributed to unitholders. - Greylock Production has a right of first refusal to purchase the remaining royalty interests. **Key Metrics (in thousands):** - Total Assets: $14,104,113 (up from $13,719,982) - Total Liabilities and Trust Corpus: $14,104,113 (up from $13,719,982) - Cash: $2,834,837 (up from $2,693,762) - Royalty income receivable: $1,278,647 (up from $743,882) - Net royalty interest in gas properties: $9,990,629 (down from $10,282,338)