MTR is a single-asset royalty trust whose income is entirely dependent on one operator in one basin. The repeated warnings about materially reduced distributions and possible zero-payout periods, combined with the $2.0M cash reserve build, suggest the distribution trajectory will continue declining. Monitor the next 10-Q for the pace of cash reserve accumulation and for any indication of production curtailment or cost overruns at Hilcorp's San Juan operations.
Price Chart
Executive Summary
Mesa Royalty Trust reported May 2026 royalty income of $54,382, all from the San Juan Basin properties operated by Hilcorp San Juan LP, with a distributable net profit of $45,668 resulting in a $0.0245/unit distribution payable July 31. No income was received from any other working interest owner. The trust continues to warn that distributions will be materially reduced until cash reserves reach $2.0M, and that substantial accumulated excess production costs may result in no distributions in some periods.
Key Financial Metrics
Key Facts
- May 2026 royalty income: $54,382, all from Hilcorp-operated San Juan Basin New Mexico properties — no income from any other working interest owner
- Distributable net profit after expenses: $45,668
- Distribution of $0.024505172 per unit, payable July 31, 2026 to holders of record May 29
- Trust must increase cash reserves to $2.0M for added liquidity, materially reducing future distributions
- Substantial accumulated excess production costs may result in no distributions in some periods
- Market cap only ~$8M — any operational disruption or cost overhang is magnified
Financial Impact
Monthly income of $54K on an ~$8M market cap implies an annualized run-rate yield of ~8%, but the trust explicitly warns distributions will be materially reduced and may go to zero in some periods
Risk Factors
- Single-operator, single-basin concentration — total dependency on Hilcorp San Juan LP
- Trust explicitly warns distributions may go to zero in some periods due to excess accumulated production costs
- Mandatory cash reserve build to $2.0M will further reduce near-term distributions
- Oil & gas commodity price volatility directly impacts proceeds received
- No diversification — zero income from Kansas Hugoton or Colorado San Juan properties this month
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-063180 |
| Document: tm2614779d1_ex99-1.htm | 0001104659-26-063180 |
| Document: 0001104659-26-063180-index-headers.html | 0001104659-26-063180 |
| Document: 0001104659-26-063180-index.html | 0001104659-26-063180 |
| Document: 0001104659-26-063180.txt | 0001104659-26-063180 |
| 8-K Data (Synthetic) | 0001104659-26-063180 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 6d ago | 8-K | $1.95 | awaiting T+20 | — | $1.95 (−0.26%) |
Aug 21, 2026 9w ago | 8-K | $2.60 $2.43 | ▲ +6.54% | ▲ +7.85% | $1.95 (+25.00%) |
Jun 18, 2026 18w ago | 8-K | $3.17 $3.11 | ▲ +1.89% | ▲ +1.75% | $1.95 (+38.49%) |
May 18, 2026 23w ago | 8-K | $4.09 $3.36 | ▲ +17.85% | ▲ +18.83% | $1.95 (+52.32%) |
Apr 17, 2026 27w ago | 8-K | $4.82 $4.05 | ▼ −15.97% | ▼ −20.18% | $1.95 (−59.54%) |
US Market Status
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