ECA Marcellus Trust I Files Quarterly Report (10-Q) for Period Ended March 31, 2024
Ticker: ECTM · Form: 10-Q · Filed: May 13, 2024 · CIK: 1487798
| Field | Detail |
|---|---|
| Company | Eca Marcellus Trust I (ECTM) |
| Form Type | 10-Q |
| Filed Date | May 13, 2024 |
| Risk Level | low |
| Pages | 15 |
| Reading Time | 17 min |
| Key Dollar Amounts | $0.52, $1.5 million, $352,100,000, $20.00, $171,743 |
| Sentiment | neutral |
Sentiment: neutral
Topics: 10-Q, ECA Marcellus Trust I, Quarterly Report, Financial Statements, Oil and Gas
TL;DR
<b>ECA Marcellus Trust I has filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial position and operational status.</b>
AI Summary
ECA Marcellus Trust I (ECTM) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. ECA Marcellus Trust I filed a 10-Q report for the quarterly period ended March 31, 2024. The report includes unaudited financial statements for the period. As of May 13, 2024, 17,605,000 Common Units of Beneficial Interest were outstanding. The Trust is incorporated in Delaware with IRS number 27-6522024. The filing is for the period ended March 31, 2024, and was filed as of May 13, 2024.
Why It Matters
For investors and stakeholders tracking ECA Marcellus Trust I, this filing contains several important signals. This 10-Q filing provides investors with the latest unaudited financial statements, offering a current snapshot of the Trust's performance and assets. The report confirms the number of outstanding units, which is crucial for understanding potential distributions and ownership stakes for unitholders.
Risk Assessment
Risk Level: low — ECA Marcellus Trust I shows low risk based on this filing. The filing is a routine quarterly report (10-Q) and does not contain significant new risks or material adverse events, indicating a stable operational status.
Analyst Insight
Review the unaudited financial statements within the 10-Q to assess the Trust's current revenue, expenses, and distributable income for the quarter ended March 31, 2024.
Key Numbers
- 17,605,000 — Common Units Outstanding (As of May 13, 2024)
- 001-34800 — SEC File Number (ECA Marcellus Trust I)
- 27-6522024 — IRS Number (ECA Marcellus Trust I)
- 2024-03-31 — Quarterly Period End (For the report)
- 2024-05-13 — Filing Date (As of date)
Key Players & Entities
- ECA Marcellus Trust I (company) — Registrant name
- The Bank of New York Mellon Trust Company, N.A. (company) — Trustee
- March 31, 2024 (date) — Quarterly period end date
- May 13, 2024 (date) — Filing date
- 17,605,000 (dollar_amount) — Outstanding Common Units
FAQ
When did ECA Marcellus Trust I file this 10-Q?
ECA Marcellus Trust I filed this Quarterly Report (10-Q) with the SEC on May 13, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by ECA Marcellus Trust I (ECTM).
Where can I read the original 10-Q filing from ECA Marcellus Trust I?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by ECA Marcellus Trust I.
What are the key takeaways from ECA Marcellus Trust I's 10-Q?
ECA Marcellus Trust I filed this 10-Q on May 13, 2024. Key takeaways: ECA Marcellus Trust I filed a 10-Q report for the quarterly period ended March 31, 2024.. The report includes unaudited financial statements for the period.. As of May 13, 2024, 17,605,000 Common Units of Beneficial Interest were outstanding..
Is ECA Marcellus Trust I a risky investment based on this filing?
Based on this 10-Q, ECA Marcellus Trust I presents a relatively low-risk profile. The filing is a routine quarterly report (10-Q) and does not contain significant new risks or material adverse events, indicating a stable operational status.
What should investors do after reading ECA Marcellus Trust I's 10-Q?
Review the unaudited financial statements within the 10-Q to assess the Trust's current revenue, expenses, and distributable income for the quarter ended March 31, 2024. The overall sentiment from this filing is neutral.
Risk Factors
- Filing Requirements [low — regulatory]: The registrant must file all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months.
Key Dates
- 2024-03-31: Quarterly Period End — End of the reporting period for the unaudited financial statements.
- 2024-05-13: Filing Date — Date the 10-Q report was officially submitted to the SEC.
Glossary
- 10-Q
- A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure of financial information. (This filing provides the latest financial performance data for ECA Marcellus Trust I.)
- Common Units of Beneficial Interest
- Represents ownership stakes in the trust. (The number of outstanding units is critical for understanding potential distributions and investor ownership.)
Filing Stats: 4,358 words · 17 min read · ~15 pages · Grade level 16.9 · Accepted 2024-05-13 16:05:23
Key Financial Figures
- $0.52 — em (“GCGS”) were limited to $0.52 per MMBtu gathered until Legacy ECA ful
- $1.5 million — four consecutive quarters are less than $1.5 million. If this early termination event occurs
- $352,100,000 — nted for as a purchase transaction. The $352,100,000 reflected in the Statements of Assets,
- $20.00 — esents 17,605,000 Trust units valued at $20.00 per unit. The carrying value of the Tru
- $171,743 — djustment each year. The annual fee was $171,743 in 2023 and is $176,895 in 2024. The Tr
- $176,895 — annual fee was $171,743 in 2023 and is $176,895 in 2024. The Trust deducts these costs,
- $60,000 — he Royalty Interests. The annual fee of $60,000 is payable in equal quarterly installme
Filing Documents
- tm2410873d1_10q.htm (10-Q) — 164KB
- tm2410873d1_ex-31.htm (EX-31) — 8KB
- tm2410873d1_ex-32.htm (EX-32) — 5KB
- 0001104659-24-060516.txt ( ) — 178KB
– Financial Information
PART I – Financial Information Item 1. Unaudited Financial Statements 3 3 4 5
Notes to Financial Statements
Notes to Financial Statements 6
Trustee’s Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Trustee’s Discussion and Analysis of Financial Condition and Results of Operations 10 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 16 Item 4.
Controls and Procedures
Controls and Procedures 16 PART – II Other Information 18 Item 1A.
Other Information
Item 5. Other Information 18 Item 6. Exhibits 18
SIGNATURES
SIGNATURES 19 APPENDIX A 20 Glossary of Certain Terms 20 References to the “Trust” in this document refer to ECA Marcellus Trust I. As discussed in Part I, Item 2 – “Trustee’s Discussion and Analysis of Financial Condition and Results of Operations – Overview,” 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 ECA Marcellus Trust I (the “Acquisition”). References to “Greylock Energy” in this document refer 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 refer 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” in Appendix A), as such entities existed prior to the asset acquisition by Greylock Energy. References to the “Sponsor” in this document refer to Legacy ECA for periods prior to the Acquisition, and to Greylock Energy for periods after the Acquisition. 2
- FINANCIAL
PART I - FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements. ECA Marcellus Trust I March 31, December 31, 2024 2023 (Unaudited) ASSETS: Cash $ 2,670,131 $ 2,660,054 Royalty income receivable 627,390 686,504 Royalty interest in gas properties 352,100,000 352,100,000 Accumulated amortization (340,993,692 ) (340,685,825 ) Net royalty interest in gas properties 11,106,308 11,414,175 Total Assets $ 14,403,829 $ 14,760,733 LIABILITIES AND TRUST CORPUS: Liabilities: Distributions payable to unitholders $ 361,819 $ 524,350 Trust corpus; 17,605,000 common unitsauthorized, issued and outstanding 14,042,010 14,236,383 Total Liabilities and Trust Corpus $ 14,403,829 $ 14,760,733 See notes to the unaudited financial statements. 3 ECA Marcellus Trust I (Unaudited) Three Months Ended March 31, 2024 2023 Royalty income $ 627,390 $ 1,165,543 Net proceeds to Trust $ 627,390 $ 1,165,543 General and administrative expense (185,051 ) (333,080 ) Interest income 36,774 29,507 Income available for distribution prior to cash reserves $ 479,113 $ 861,970 Cash reserves withheld by Trustee (90,000 ) (90,000 ) Interest withheld on cash reserves (27,293 ) (16,813 ) Distributable income available to unitholders $ 361,819 $ 755,157 Distributable income per common unit(17,605,000 units authorized and outstanding) $ 0.021 $ 0.043 See notes to the unaudited financial statements. 4 ECA Marcellus Trust I (Unaudited) Three Months Ended March 31, 2024 2023 Trust Corpus, Balance at January 1, $ 14,236,383 $ 14,992,095 Cash reserves withheld, including interest 117,293 106,813 Distributable income 361,819 755,157 Distributions paid or payable to unitholders (365,620 ) (750,845 ) Amortization of royalty interest in gas properties (307,866 ) (292,047 ) Impairment of royalty interest in
NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1. Organization of the Trust ECA Marcellus Trust I is a Delaware statutory trust formed in March 2010 by Energy Corporation of America (“Legacy ECA”) to own royalty interests in 14 producing horizontal natural gas wells producing from the Marcellus Shale formation, all of which are online and are located in Greene County, Pennsylvania (the “Producing Wells”), and royalty interests in 52 horizontal natural gas development wells subsequently drilled to the Marcellus Shale formation (the “PUD Wells”) within the “Area of Mutual Interest”, or “AMI”, comprising approximately 9,300 acres held by Legacy ECA, of which it owned substantially all of the working interests, in Greene County, Pennsylvania. The effective date of the Trust was April 1, 2010; consequently, the Trust received the proceeds of production attributable to the PDP Royalty Interest (defined herein) from that date even though the PDP Royalty Interest was not conveyed to the Trust until the closing of the initial public offering on July 7, 2010. The total number of units the Trust is authorized to issue is 17,605,000 units, all of which are now common units. The royalty interests were conveyed from Legacy ECA’s working interest in the Producing Wells and the PUD Wells limited to the Marcellus Shale formation (the “Underlying Properties”). 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 of the assets of Legacy ECA, as described in Note 4. The royalty interest in the Producing Wells (the “PDP Royalty Interest”) entitles the Trust to receive 90
Trustee's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Trustee's Discussion and Analysis of Financial Condition and Results of Operations. References to the “Trust” in this document refer to ECA Marcellus Trust I. As discussed in “Overview” below, Greylock Energy acquired substantially all of the assets of Energy Corporation of America in November 2017. References to “Legacy ECA” in this document refer to Energy Corporation of America and its wholly-owned subsidiaries and, when discussing the conveyance documents, the Private Investors, as such entities existed prior to the asset acquisition by Greylock Energy. The following review of the Trust’s financial condition and results of operations should be read in conjunction with the financial statements and notes thereto and the audited financial statements and notes thereto included in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). The Trust’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports are available on the SEC’s website at www.sec.gov and at http://ect.q4web.com/home/default.aspx. Certain terms used herein are defined in Appendix A. All information regarding operations has been provided to the Trustee by Greylock Energy. Note Regarding Forward-Looking Statements This report 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