Mesa Royalty Trust continues losses

 

The last time the Mesa Royalty Trust reported any distribution of income was in May of 2020.

Like it has since June 2020, the Trust won’t have any monthly distribution for March according to an announcement.

The trust announced to holders of record that costs, charges and expenses exceeded the revenue receive from the sale of oil, natural gas and other hydrocarbons drawn from its properties in the Hugoton field of Southwest Kansas and the San Juan Basin fields of New Mexico and Colorado.

There was a substantial decrease in oil and natural gas prices in 2020 due in part to significantly decreased demand as a result of the COVID-19 pandemic and an oversupply of crude oil. The trust’s announcement stated that oil and natural gas prices could remain low for an extended period of time, which in turn could have a material adverse effect on Trust distributions.

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