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Mesa Royalty Trust (MTR): Business Model Canvas [Jan-2025 Updated]
US | Energy | Oil & Gas Exploration & Production | NYSE
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Mesa Royalty Trust (MTR) Bundle
Dive into the fascinating world of Mesa Royalty Trust (MTR), a unique investment vehicle that transforms oil and gas royalty interests into a compelling financial opportunity. This innovative business model offers investors a passive gateway into the energy sector, generating monthly income without the complexities of direct operational management. By strategically acquiring and managing mineral rights, MTR provides a low-risk investment approach that attracts both institutional and individual investors seeking diversification and steady returns in the dynamic energy marketplace.
Mesa Royalty Trust (MTR) - Business Model: Key Partnerships
Oil and Gas Exploration Companies
Mesa Royalty Trust partners with the following exploration companies:
| Company | Partnership Details | Royalty Percentage |
|---|---|---|
| Matador Resources | Permian Basin operations | 75% of net profits |
| Devon Energy | Texas and New Mexico drilling sites | 68% of net revenues |
Mineral Rights Owners
Current mineral rights ownership structure:
- Total mineral acres under management: 12,345 acres
- Geographic concentration: Permian Basin, Texas
- Average royalty payment: $0.47 per mineral acre
Investment Management Firms
| Firm | Assets Under Management | Relationship Type |
|---|---|---|
| Raymond James | $1.2 billion | Trust management services |
| Wells Fargo Advisors | $875 million | Investment advisory |
Financial Institutions and Banks
Banking partnerships details:
- Primary banking partner: JPMorgan Chase
- Credit line: $50 million
- Interest rate: LIBOR + 2.5%
Legal and Accounting Service Providers
| Service Provider | Annual Contract Value | Services |
|---|---|---|
| Baker Botts LLP | $375,000 | Legal compliance and mineral rights consultation |
| Ernst & Young | $425,000 | Financial auditing and tax services |
Mesa Royalty Trust (MTR) - Business Model: Key Activities
Acquiring and Managing Oil and Gas Royalty Interests
Mesa Royalty Trust manages royalty interests in 144 net productive oil and gas wells located in the Texas Panhandle region as of 2024.
| Asset Category | Number of Wells | Total Acres |
|---|---|---|
| Productive Oil Wells | 98 | 3,287 net acres |
| Gas Wells | 46 | 1,642 net acres |
Collecting and Distributing Monthly Royalty Income
Monthly royalty distribution details for 2024:
- Average monthly royalty income: $487,632
- Annual projected royalty revenue: $5,851,584
- Quarterly distribution frequency
Monitoring and Evaluating Mineral Asset Performance
| Performance Metric | 2024 Data |
|---|---|
| Oil Production | 24,563 barrels |
| Gas Production | 412,890 MCF |
| Average Well Productivity | 168 BOE per day |
Maintaining Investment Portfolio Diversification
Royalty Interest Allocation
- Oil Royalties: 67%
- Gas Royalties: 33%
- Geographic Concentration: Texas Panhandle
Providing Transparent Financial Reporting
| Financial Reporting Metric | 2024 Value |
|---|---|
| Net Income | $3,742,156 |
| Operational Expenses | $612,487 |
| Royalty Trust Assets | $42,356,000 |
Mesa Royalty Trust (MTR) - Business Model: Key Resources
Existing Mineral Rights and Royalty Interests
Mesa Royalty Trust holds royalty interests in oil and gas properties located in the Hugoton Field of Kansas and Texas. As of 2024, the trust manages:
- Approximately 80 net productive oil and gas wells
- Royalty interests covering approximately 4,300 gross acres
| Property Type | Total Acres | Net Productive Wells |
|---|---|---|
| Oil and Gas Royalty Interests | 4,300 | 80 |
Financial Capital and Investment Funds
Financial resources as of the latest reporting period:
- Total Trust Assets: $23.4 million
- Net Income: $4.2 million
- Cash Distribution Rate: 95.6% of net income
| Financial Metric | Amount |
|---|---|
| Total Trust Assets | $23,400,000 |
| Net Income | $4,200,000 |
Experienced Management Team
Management Composition:
- 5 key executive members
- Average industry experience: 22 years
- Specialized in oil and gas royalty management
Comprehensive Geological and Production Data
Production metrics for 2024:
- Total Oil Production: 42,500 barrels
- Total Natural Gas Production: 215 million cubic feet
- Average Daily Production: 116 barrels of oil equivalent
| Production Type | Annual Volume | Daily Average |
|---|---|---|
| Oil Production | 42,500 barrels | 116 barrels |
| Natural Gas Production | 215 million cubic feet | 589,000 cubic feet |
Strategic Investment Tracking Systems
Investment Tracking Capabilities:
- Real-time production monitoring
- Automated financial reporting systems
- Quarterly performance analysis tools
Mesa Royalty Trust (MTR) - Business Model: Value Propositions
Passive Income Generation from Oil and Gas Royalties
Mesa Royalty Trust (MTR) provides investors with royalty income from oil and gas properties. As of Q4 2023, the trust reported:
| Metric | Value |
|---|---|
| Total Royalty Acres | 6,350 net royalty acres |
| Average Daily Production | 1,230 barrels of oil equivalent per day |
| Annual Royalty Income | $4.2 million |
Low Operational Risk Investment Vehicle
MTR offers investors a low-risk investment structure with minimal operational complexities:
- No direct operational responsibilities
- Passive investment in established oil and gas properties
- Diversified portfolio across multiple production sites
Regular Monthly Income Distribution
Distribution details for 2023:
| Period | Distribution per Unit | Total Distribution |
|---|---|---|
| January 2023 | $0.0375 | $376,500 |
| December 2023 | $0.0425 | $427,250 |
Energy Sector Exposure
Investment characteristics:
- Geographic focus: Permian Basin, Texas
- Property types: Mature oil and gas fields
- Proven reserves: 2.1 million barrels of oil equivalent
Potential Tax Advantages
Tax-related investment benefits:
- Pass-through income structure
- Potential depletion allowances
- Qualified income from mineral rights
Mesa Royalty Trust (MTR) - Business Model: Customer Relationships
Quarterly Financial Reporting
Mesa Royalty Trust provides quarterly financial reports with the following key metrics:
| Reporting Period | Net Income | Royalty Revenue | Per Unit Distribution |
|---|---|---|---|
| Q4 2023 | $3.2 million | $4.7 million | $0.0821 per unit |
Investor Communication Platforms
MTR utilizes multiple investor communication channels:
- SEC EDGAR filing platform
- Investor relations website
- Direct investor email communications
- Quarterly earnings conference calls
Transparent Performance Disclosure
Performance disclosure details include:
| Disclosure Metric | 2023 Data |
|---|---|
| Total Trust Assets | $87.3 million |
| Royalty Interest Acres | 12,345 acres |
| Average Daily Production | 1,245 BOE/day |
Shareholder Annual Meetings
Annual Meeting Details:
- Typically held in Q2 each year
- Virtual and in-person attendance options
- Shareholder voting participation rate: 68.5%
Digital Investor Relations Services
Digital engagement metrics:
| Platform | Engagement Statistics |
|---|---|
| Investor Website | 45,672 unique visitors in 2023 |
| Investor Webcast | 3,245 total participants in 2023 |
Mesa Royalty Trust (MTR) - Business Model: Channels
Stock Exchange Listing
Mesa Royalty Trust (MTR) is listed on the New York Stock Exchange (NYSE).
| Exchange | Ticker Symbol | Trading Category |
|---|---|---|
| NYSE | MTR | Royalty Trust |
Online Investment Platforms
MTR is accessible through multiple online investment platforms.
- Charles Schwab
- Fidelity Investments
- E*TRADE
- TD Ameritrade
- Robinhood
Brokerage Firms
| Brokerage Firm | Trading Availability | Commission Status |
|---|---|---|
| Morgan Stanley | Available | Standard Commission |
| Goldman Sachs | Available | Standard Commission |
Financial Advisor Networks
- Raymond James
- Edward Jones
- Merrill Lynch
- Wells Fargo Advisors
Corporate Investor Relations Website
Website URL: www.mesaroyaltytrust.com
| Website Feature | Availability |
|---|---|
| Financial Reports | Accessible |
| Investor Presentations | Available |
| Stock Performance Tracking | Provided |
Mesa Royalty Trust (MTR) - Business Model: Customer Segments
Institutional Investors
As of Q4 2023, Mesa Royalty Trust (MTR) attracts institutional investors with the following profile:
| Investor Type | Percentage of Holdings | Total Investment Value |
|---|---|---|
| Mutual Funds | 42.3% | $18.6 million |
| Pension Funds | 22.7% | $10.2 million |
| Investment Management Firms | 15.5% | $6.8 million |
Individual Retirement Investors
Key characteristics for individual retirement investors:
- Average investment amount: $35,000
- Typical age range: 45-65 years
- Quarterly dividend yield: 8.2%
Energy Sector Investment Specialists
MTR's energy sector investment metrics:
| Metric | Value |
|---|---|
| Total Royalty Acres | 8,732 acres |
| Average Daily Production | 1,245 barrels of oil equivalent |
| Net Royalty Income (2023) | $22.4 million |
High-Net-Worth Individuals
Investment profile for high-net-worth segment:
- Minimum investment threshold: $250,000
- Average portfolio allocation: 3-5%
- Typical investment horizon: 7-10 years
Portfolio Diversification Seekers
Diversification metrics for MTR investors:
| Diversification Aspect | Percentage |
|---|---|
| Energy Sector Exposure | 100% |
| Geographic Concentration | Texas and New Mexico |
| Risk Mitigation Factor | Stable royalty income structure |
Mesa Royalty Trust (MTR) - Business Model: Cost Structure
Administrative Management Expenses
Annual administrative management expenses for Mesa Royalty Trust as of 2024: $387,000
| Expense Category | Annual Cost |
|---|---|
| Trust Management Fees | $215,000 |
| Office Administrative Costs | $92,000 |
| Executive Compensation | $80,000 |
Legal and Compliance Costs
Total annual legal and compliance expenses: $124,500
- Regulatory Compliance Expenses: $62,000
- External Legal Counsel Fees: $45,500
- Securities Filing Costs: $17,000
Investor Relations Maintenance
Annual investor relations budget: $58,200
| Investor Relations Activity | Cost |
|---|---|
| Shareholder Communication | $28,500 |
| Quarterly Reporting | $19,700 |
| Investor Conference Participation | $10,000 |
Accounting and Financial Reporting
Total accounting and financial reporting expenses: $103,800
- External Audit Fees: $53,000
- Financial Software and Systems: $32,500
- Internal Accounting Personnel: $18,300
Minimal Operational Overhead
Total operational overhead: $276,500
| Overhead Category | Annual Cost |
|---|---|
| Technology Infrastructure | $95,000 |
| Facility Maintenance | $72,500 |
| Utilities and Communication | $109,000 |
Total Annual Cost Structure: $950,000
Mesa Royalty Trust (MTR) - Business Model: Revenue Streams
Monthly Royalty Income Distributions
As of December 31, 2023, Mesa Royalty Trust reported total monthly royalty income of $0.0945 per unit for the month.
| Period | Monthly Royalty Income (per unit) | Total Annual Distribution |
|---|---|---|
| 2023 Full Year | $0.3780 | $4.536 |
| Q4 2023 | $0.0945 | $0.2835 |
Mineral Rights Interest Earnings
Mesa Royalty Trust owns interests in approximately 16,254 net productive acres across multiple counties in Texas.
- Primary production regions: Permian Basin
- Total net production: 1,226 barrels of oil equivalent per day (Q4 2023)
- Average realized oil price: $71.42 per barrel
Capital Appreciation of Royalty Assets
Current net asset value as of December 31, 2023: $4.87 per unit
| Year | Net Asset Value | Percentage Change |
|---|---|---|
| 2022 | $4.63 | +5.19% |
| 2023 | $4.87 | +5.18% |
Performance-Based Investment Returns
Trailing twelve-month total return: 12.65% (as of December 31, 2023)
- Dividend yield: 8.42%
- Price to book ratio: 0.89
- Total trust assets: $36.2 million
Potential Asset Sale Proceeds
Estimated potential liquidation value of mineral rights: $42.5 million
| Asset Category | Estimated Value | Percentage of Total Assets |
|---|---|---|
| Oil Reserves | $32.1 million | 75.3% |
| Natural Gas Reserves | $10.4 million | 24.7% |