The COVID-19 pandemic is again blamed for Mesa Royalty Trust declare no distribution to be paid from its royalty holdings in the Hugoton gas field of southwest Kansas and the oil and gas operations in New Mexico’s San Juan Basin.
The Houston-based Trust, formed to own an overriding royalty interest of the net proceeds from the producing oil and gas properties in the two regions announced no distribution will be paid for the month ended December 2020.
It stated the costs, charges and expenses attributable to the royalty properties exceeded the revenue from the sale of oil, natural gas and other hydrocarbons produced from the properties.
“There has been 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,” stated the trust in the announcement.
It said continued low prices will reduced proceeds for the trust and also the amount of cash available for distribution to unitholders.
Source: BusinessWire
