Gulf Coast Ultra Deep Royalty Trust Files 10-Q for Period Ended March 31, 2024

TL;DR

<b>Gulf Coast Ultra Deep Royalty Trust filed its quarterly report (10-Q) for the period ending March 31, 2024, reporting 230,172,696 units outstanding.</b>

AI Summary

Gulf Coast Ultra Deep Royalty Trust (GULTU) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. Gulf Coast Ultra Deep Royalty Trust filed a 10-Q report for the quarterly period ended March 31, 2024. The filing was made on May 13, 2024. As of May 13, 2024, there were 230,172,696 royalty trust units outstanding. The Trust is incorporated in Delaware and has an IRS Employer Identification No. of 46-6448579. The Trust is classified as a smaller reporting company and an emerging growth company.

Why It Matters

For investors and stakeholders tracking Gulf Coast Ultra Deep Royalty Trust, this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for the Trust, crucial for assessing its current value and future prospects. As a smaller reporting and emerging growth company, the Trust's disclosures are important for understanding its specific financial situation and regulatory standing.

Risk Assessment

Risk Level: low — Gulf Coast Ultra Deep Royalty Trust shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating routine disclosure of financial information.

Analyst Insight

Monitor future filings for changes in outstanding units, financial performance, and any operational updates that could impact trust distributions.

Key Numbers

• 230,172,696 — Royalty Trust Units Outstanding (As of May 13, 2024)
• 2024-03-31 — Quarterly Period End Date (10-Q Filing)
• 2024-05-13 — Filing Date (10-Q Filing)

Key Players & Entities

• Gulf Coast Ultra Deep Royalty Trust (company) — Registrant
• 20240331 (date) — Conformed period of report
• 20240513 (date) — Filed as of date
• 230,172,696 (dollar_amount) — Royalty trust units outstanding
• The Bank of New York Mellon Trust Company, N.A. (company) — Trustee
• 601 Travis Street, 16th Floor Houston, Texas 77002 (address) — Principal executive offices

FAQ

Risk Factors

• Reporting Requirements [low — regulatory]: The Trust is subject to Section 13 or 15(d) of the Securities Exchange Act of 1934, requiring regular filings.

Industry Context

The Trust operates within the crude petroleum and natural gas industry, focusing on royalty interests.

Regulatory Implications

The Trust is required to file quarterly reports (10-Q) under the Securities Exchange Act of 1934, detailing its financial condition and operations.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and the Trustee's Discussion and Analysis.
2. Track the number of outstanding royalty trust units for any significant changes.
3. Analyze any disclosed operational or financial results to understand the Trust's performance.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q
• 2024-05-13: Filing Date — Date the 10-Q was submitted to the SEC

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending March 31, 2024, as no prior period data is provided in this extract.

Key Financial Figures

• $0 — of the overriding royalty interests by $0 and $21,780 during the three-month peri
• $21,780 — overriding royalty interests by $0 and $21,780 during the three-month periods ended Ma
• $308,071 — onshore Highlander subject interest by $308,071 during the quarter ended March 31, 2023
• $6,756,701 — ment loss. Accumulated amortization was $6,756,701 at March 31, 2024 and December 31, 2023
• $386,947 — alty Trust received royalties of $0 and $386,947 during the three-month periods ended Ma
• $302,500 — s established a minimum cash reserve of $302,500. The minimum cash reserve is not reflec
• $8,750 — ter of 2022, the Royalty Trust withheld $8,750 from the funds otherwise available for
• $350,000 — uilding a cash reserve of approximately $350,000. As no proceeds were available for dist
• $166,000 — rovision, FCX contributed approximately $166,000 for the payment of trust expenses incur
• $1.0 million — t, FCX agreed to provide and maintain a $1.0 million stand-by reserve account or an equivale
• $1.0 m — $1.0 million to the Royalty Trust. The $1.0 million, plus interest collected thereon,
• $14,280 — ebruary 1, 2024, the Royalty Trust used $14,280 from the reserve account to pay adminis
• $200,000 — Trustee receives annual compensation of $200,000. Additionally, the Trustee receives rei

Filing Documents

• form10-q.htm (10-Q) — 171KB
• ex31.htm (EX-31) — 21KB
• ex32.htm (EX-32) — 9KB
• 0001493152-24-018932.txt (&nbsp;) — 201KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements: 3 4 5

Notes to Financial Statements

Notes to Financial Statements 6

Trustee&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Trustee&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations 10

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 14

Controls and Procedures

Item 4. Controls and Procedures 14

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 15

Risk Factors

Item 1A. Risk Factors 15

Other Information

Item 5. Other Information 15

Exhibits

Item 6. Exhibits 15 Signature 16 2 Part I. FINANCIAL INFORMATION Item 1. Financial Statements . GULF COAST ULTRA DEEP ROYALTY TRUST OF ASSETS, LIABILITIES AND TRUST CORPUS March 31, December 31, 2024 2023 (unaudited) (audited) ASSETS Operating cash $ 153,554 $ 43,741 Reserve fund cash and short-term investments 1,116,605 1,116,460 Overriding royalty interests in subject interests, net - - Total assets $ 1,270,159 $ 1,160,201 LIABILITIES AND TRUST CORPUS Reserve fund liability $ 1,130,885 $ 1,116,460 Trust corpus (230,172,696 royalty trust units authorized, issued and outstanding as of March 31, 2024 and December 31, 2023) 139,274 43,741 Total liabilities and trust corpus $ 1,270,159 $ 1,160,201 The accompanying notes are an integral part of these financial statements. 3 GULF COAST ULTRA DEEP ROYALTY TRUST OF DISTRIBUTABLE INCOME (Unaudited) Three Months Ended March 31, 2024 2023 Royalty income $ - $ 386,947 Interest income and other 1,340 8,810 Administrative expenses (421,723 ) (189,676 ) Income in excess of administrative expenses (administrative expenses in excess of income) (Note 4) $ (420,383 ) $ 206,081 Distributable income (Note 4) $ - $ 197,331 Distributable income per royalty trust unit $ - $ 0.000857 Royalty trust units outstanding at end of period 230,172,696 230,172,696 The accompanying notes are an integral part of these financial statements. 4 GULF COAST ULTRA DEEP ROYALTY TRUST OF CHANGES IN TRUST CORPUS (Unaudited) Three Months Ended March 31, 2024 2023 Trust corpus, beginning of period $ 43,741 $ 1,245,494 Trust contributions 515,916 - Amortization of overriding royalty interests in subject interests - (21,780 ) Impairment of subject interests - (308,071 ) Income in excess of administrative expenses (administrative expenses in excess of income) (420,383 ) 206,081 Distributions paid -

Business

Business Overview On June 3, 2013, Freeport-McMoRan Inc. (FCX) and McMoRan Exploration Co. (MMR) completed the transactions contemplated by the Agreement and Plan of Merger, dated as of December 5, 2012 (the merger agreement), by and among MMR, FCX, and INAVN Corp., a Delaware corporation and indirect wholly owned subsidiary of FCX (Merger Sub). Pursuant to the merger agreement, Merger Sub merged with and into MMR, with MMR surviving the merger as an indirect wholly owned subsidiary of FCX (the merger). FCX&rsquo;s oil and gas assets are held through its wholly owned subsidiary, FCX Oil & Gas LLC (FM O&G). As a result of the merger, MMR and McMoRan Oil & Gas LLC (McMoRan) are both indirect wholly owned subsidiaries of FM O&G. The Royalty Trust is a statutory trust created as contemplated by the merger agreement by FCX under the Delaware Statutory Trust Act pursuant to a trust agreement entered into on December 18, 2012 (inception), by and among FCX, as depositor, Wilmington Trust, National Association, as Delaware trustee, and certain officers of FCX, as regular trustees. On May 29, 2013, Wilmington Trust, National Association, was replaced by BNY Trust of Delaware, as Delaware trustee (the Delaware Trustee), through an action of the depositor. Effective June 3, 2013, the regular trustees were replaced by The Bank of New York Mellon Trust Company, N.A., a national banking association, as trustee (the Trustee). The Royalty Trust was created to hold a 5% gross overriding royalty interest (collectively, the overriding royalty interests) in future production from specified Inboard Lower Tertiary/Cretaceous exploration prospects located in the shallow waters of the Gulf of Mexico and onshore in South Louisiana that existed as of December 5, 2012, the date of the merger agreement (collectively, the subject interests). The subject interests were &ldquo;carved out&rdquo; of the mineral interests that were acquired by FCX pursuant to the merger and were not considere

View Full Filing

View this 10-Q filing on SEC EDGAR