ECA Marcellus Trust I reported a decrease in distributable income for the year ended December 31, 2024, amounting to $0.8 million, down from $1.4 million in 2023. This decline was primarily attributed to a drop in royalty income, which fell to $2.2 million from $2.9 million in the previous year, reflecting a decrease in both production and average realized prices. The average price realized for natural gas decreased by $0.20 per Mcf to $1.11 per Mcf, influenced by a reduction in the weighted average monthly closing NYMEX price. General and administrative expenses also saw a slight increase, rising to $1.24 million from $1.17 million.
The Trust's operational metrics indicated a production decrease of 11%, with total production dropping from 2,207 MMcf in 2023 to 1,964 MMcf in 2024. The Trust continues to hold royalty interests in 14 producing wells and 40 development wells, with a total of 15,548 MMcf of proved developed producing gas reserves as of December 31, 2024. The Trust's cash reserves, which are being built to cover future liabilities, amounted to approximately $2.3 million as of the end of 2024, with the Trustee withholding $90,000 per quarter from distributions to achieve a targeted reserve of $3.8 million.
In terms of financial position, the Trust's total assets decreased to $13.72 million from $14.76 million in 2023. The net royalty interest in gas properties was reported at $10.28 million, down from $11.41 million the previous year. The Trust's liabilities included distributions payable to unitholders, which decreased to $347,101 from $524,350 in 2023. The Trust has no employees and operates under the management of The Bank of New York Mellon Trust Company, N.A., which serves as the Trustee.
Looking ahead, the Trust's cash distributions are expected to remain volatile, influenced by fluctuating natural gas prices, production volumes, and post-production costs. The ongoing geopolitical tensions, particularly the war in Ukraine and conflicts in the Middle East, may further impact market conditions and natural gas prices. The Trust is set to begin liquidation in March 2030, at which point the Royalty Interests will revert to Greylock Production, the operator of the wells. The Trustee has indicated that while current market conditions are not expected to materially affect the Trust's financial condition, the unpredictability of future events makes it challenging to forecast cash flows and distributions accurately.
About ECA Marcellus Trust I
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