ECA Marcellus Trust I Files 2023 Annual Report (10-K)

TL;DR

<b>ECA Marcellus Trust I has filed its 2023 annual report, confirming its status as a non-accelerated filer and smaller reporting company.</b>

AI Summary

ECA Marcellus Trust I (ECTM) filed a Annual Report (10-K) with the SEC on March 22, 2024. ECA Marcellus Trust I filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing indicates the Trust is not a well-known seasoned issuer, nor is it required to file reports under Section 13 or 15(d) of the Act. The Trust has submitted all required reports for the preceding 12 months and has been subject to these filing requirements for the past 90 days. ECA Marcellus Trust I is classified as a non-accelerated filer and a smaller reporting company. The principal executive offices are located at 601 Travis Street, Floor 16, Houston, Texas, 77002.

Why It Matters

For investors and stakeholders tracking ECA Marcellus Trust I, this filing contains several important signals. This 10-K filing provides a comprehensive overview of the Trust's financial performance and operational status for the fiscal year 2023, which is crucial for investors to assess its current standing and future prospects. The classification as a non-accelerated filer and smaller reporting company suggests a certain scale of operations and market capitalization, which can influence investor expectations and the level of regulatory scrutiny.

Risk Assessment

Risk Level: low — ECA Marcellus Trust I shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags, indicating a low level of immediate risk based solely on this document.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand the Trust's performance and potential challenges.

Key Numbers

• 20231231 — Fiscal Year End (Fiscal year ended December 31, 2023)
• 20240322 — Filing Date (Filed as of date)
• 1311 — SIC Code (Standard Industrial Classification: Crude Petroleum & Natural Gas)

Key Players & Entities

• ECA Marcellus Trust I (company) — Registrant name
• The Bank of New York Mellon Trust Company, N.A. (company) — Trustee
• 601 Travis Street, Floor 16 (location) — Principal executive offices address
• Houston, Texas (location) — Principal executive offices city and state
• 77002 (location) — Principal executive offices zip code
• 512-236-6555 (phone_number) — Business phone number
• 27-6522024 (tax_id) — IRS Employer Identification No.
• 001-34800 (sec_file_number) — Commission File Number

FAQ

Industry Context

ECA Marcellus Trust I operates within the Crude Petroleum & Natural Gas industry, focusing on the extraction and sale of natural gas resources.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring annual reports from companies to ensure transparency and provide information to investors.

What Investors Should Do

1. Thoroughly review the full 10-K document for detailed financial statements, management discussion, and analysis.
2. Examine any disclosed risk factors to understand potential threats to the Trust's operations and profitability.
3. Compare the current filing's data with previous filings to identify trends and significant changes in the Trust's financial health and operational strategy.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-22: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated information compared to previous filings.

Key Financial Figures

• $20,421,800 — ly completed second fiscal quarter, was $20,421,800. As of March 22, 2024, 17,605,000 Com
• $0.52 — oduction Services Fee") were limited to $0.52 per MMBtu gathered until Legacy ECA ful

Filing Documents

• tm241002-1_10k.htm (10-K) — 903KB
• tm241002d2_ex23-1.htm (EX-23.1) — 2KB
• tm241002d2_ex23-2.htm (EX-23.2) — 3KB
• tm241002d2_ex31.htm (EX-31) — 9KB
• tm241002d2_ex32.htm (EX-32) — 5KB
• hd_royalscottdenver-4clr.jpg (GRAPHIC) — 24KB
• ft_ryderscottsuite-bw.jpg (GRAPHIC) — 16KB
• 0001104659-24-037854.txt (&nbsp;) — 977KB

Forward-Looking Statements

Forward-Looking Statements 2 Glossary of Certain Oil and Natural Gas Terms 3 PART I Item 1.

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 21 Item 1B. Unresolved Staff Comments 41 Item 1C. Cybersecurity 41 Item 2.

Properties

Properties 43 Item 3.

Legal Proceedings

Legal Proceedings 48 Item 4. Mine Safety Disclosures 48 PART II Item 5. Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities 49 Item 6. [Reserved] 49 Item 7. Trustee's Discussion and Analysis of Financial Condition and Results of Operations 50 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 55 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 65 Item 9A.

Controls and Procedures

Controls and Procedures 65 Item 9B. Other Information 66 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 66 PART III Item 10. Directors, Executive Officers and Corporate Governance 67 Item 11.

Executive Compensation

Executive Compensation 67 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters 67 Item 13. Certain Relationships and Related Transactions, and Director Independence 67 Item 14. Principal Accountant Fees and Services 68 PART IV Item 15. Exhibit and Financial Statement Schedules 69 Item 16. Form 10-K Summary 70

SIGNATURES

SIGNATURES 71 Appendix A. Report of Ryder Scott Company, L.P. A-1 References to the "Trust" in this document are to ECA Marcellus Trust I. As discussed in " Business—"Introduction" in Item 1, in November 2017 Greylock Energy, LLC and certain of its wholly owned subsidiaries acquired substantially all of the gas production and midstream assets of Energy Corporation of America, including all of the interests of Legacy ECA (as defined below) in certain natural gas properties that are subject to the royalty interests held by the Trust (the "Acquisition"). References to "Greylock Energy" in this document are to Greylock Energy, LLC and certain of its wholly-owned subsidiaries, including Greylock Production, LLC ("Greylock Production"), which serves as operator of the subject wells, and Greylock Midstream, LLC ("Greylock Midstream"), whose subsidiaries market and gather certain of the gas. References to "Legacy ECA" in this document are to Energy Corporation of America and its wholly owned subsidiaries, and, when discussing the conveyance documents, the Private Investors (as defined in "Glossary of Certain Terms"), as such entities existed prior to the Acquisition. In this document, the "Sponsor" refers to Legacy ECA, for periods prior to the Acquisition, and to Greylock Energy, for periods after the Acquisition. 1 TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Form 10-K") contains "forward-looking statements" about Greylock Energy and the Trust and other matters discussed herein that are subject to risks and uncertainties. All statements other than statements of historical fact included in this document, including, without limitation, statements under "Trustee's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" regarding the financial position, business strategy, production and reserve growth, development activities and costs and other plans and objectives for the future operations of Greylock Energy and all matters relating to the Trust are forward-looking statements. Actual outcomes and results may differ materially from those projected. When used in this Form 10-K, the words "believes," "expects," "anticipates," "intends" or similar expressions, are intended to identify such forward-looking statements. Further, all statements regarding future circumstances or events are forward-looking statements. The following important factors, in addition to those discussed elsewhere in this document, could affect the future results of the energy industry in general, and Greylock Energy and the Trust in particular, and could cause those results to differ materially from those expressed in such forward-looking statements: risks incident to the operation of natural gas wells; future production costs; the effects of existing and future laws and regulatory actions; the effects of changes in commodity prices; conditions in the capital markets; the occurrence or threat of epidemic or pandemic diseases, such as the COVID-19 pandemic, or any government response to such occurrence or threat; the impact of geopolitical developments and tensions, war and uncertainty involving or in the geographical region of oil-producing countries (including the ongoing armed conflicts between Russia and Ukraine and between Israel and Hama

Business

Item 1. Business Introduction ECA Marcellus Trust I is a statutory trust formed in March 2010 under the Delaware Statutory Trust Act, pursuant to a Trust Agreement (as subsequently amended and restated, the "Trust Agreement") among Energy Corporation of America, as Trustor, The Bank of New York Mellon Trust Company, N.A., as Trustee (the "Trustee"), and Wilmington Trust Company, as Delaware Trustee (the "Delaware Trustee"). The Trust maintains its offices at the office of the Trustee, at 601 Travis Street, 16 th Floor, Houston Texas 77002. The telephone number of the Trustee is 1-512-236-6555. In November 2017, Greylock Energy, LLC and certain of its wholly owned subsidiaries ("Greylock Energy"), including Greylock Production, LLC ("Greylock Production"), which serves as operator of the subject wells, and Greylock Midstream, LLC ("Greylock Midstream"), whose subsidiaries market and gather certain of the gas, acquired substantially all of the gas production and midstream assets of Legacy ECA, including all of Legacy ECA's interests in certain natural gas properties that are subject to the Royalty Interests (described below) (the "Acquisition"). In connection with the Acquisition, Greylock Production assumed all of Legacy ECA's obligations under the Trust Agreement and other instruments to which Legacy ECA and the Trustee were parties at the time of the transaction, including (1) the Administrative Services Agreement by and among Legacy ECA, the Trust and the Trustee dated July 7, 2010, and (2) a letter agreement between Legacy ECA and the Trustee regarding certain loans to be made by Legacy ECA to the Trust as necessary to enable the Trust to pay its liabilities as they become due (the "Letter Agreement"). In addition, Legacy ECA, Greylock Production, and the Trustee entered into a Reaffirmation and Amendment of Mortgage, Assignment of Leases, Security Agreement, Fixture Filing and Financing Statement (the "Reaffirmation Agreement"), pursuant to which, among

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