Wed, Aug 14, 9:18 PM (153 days ago)
For the quarter ending June 30, 2024, Gulf Coast Ultra Deep Royalty Trust reported no royalty income, a significant decline from $14,331 in Q2 2023, due to the abandonment of its sole producing well, resulting in a complete halt of production. Total assets decreased to $1,130,583, with liabilities primarily from a reserve liability of $1,145,434. Distributable income was absent, contrasting with $197,331 in the same quarter last year. Administrative expenses were lower at $156,042 compared to $171,714 in Q2 2023, reflecting reduced operational costs. The trust's future income remains uncertain as no new drilling plans have been disclosed by the operator, HOGA. The Royalty Trust's liquidity is supported by contributions from Freeport-McMoRan Inc., ensuring it can cover administrative expenses, but without production, no distributions are anticipated for unitholders. Overall, the trust faces significant operational challenges, with no current income or cash available for future distributions.