The Trust, which owns an overriding royalty interest in oil and gas properties located in the Hugoton field of Kansas and the San Juan Basin fields of New Mexico and Colorado, indicated that the amount of monthly distributions is subject to fluctuation based on various factors, including production levels, oil and natural gas prices, and administrative expenses. Furthermore, the Trust's recent filings suggest that distributions may be materially reduced until cash reserves reach a total of $2.0 million to enhance liquidity.
The announcement comes amid ongoing volatility in the oil and gas industry, which has historically impacted the Trust's ability to pay distributions. The Trust cautioned that proceeds reported by working interest owners may not accurately represent future net proceeds, and that accumulated excess production costs could further decrease distributions. The Trust's management emphasized the importance of monitoring these factors closely, as they directly affect the cash available for distribution to unitholders.
This press release contains forward-looking statements, and the Trust does not guarantee that the expectations outlined will be met. Unitholders are encouraged to consult their tax advisors regarding their specific circumstances. For further information, unitholders can contact Elaina Rodgers at The Bank of New York Mellon Trust Company, N.A., the Trustee, at 713-483-6020.
