ECA Marcellus Trust I announced a distribution of $0.020 per unit for the quarter ended June 30, 2025.
The distribution is expected to be paid on or before August 29, 2025, to holders of record as of August 25, 2025.
The Trust has been building a cash reserve for future expenses since the first quarter of 2019.
Cash Reserve Increase
The Trustee increased the targeted cash reserve from $1.8 million to approximately $3.8 million.
Distribution Strategy
Cash reserves are built by withholding $90,000 per quarter until the target of $3.8 million is reached.
Royalty Interests
The Trust owns royalty interests in natural gas properties held by Greylock Energy LLC in Pennsylvania.
Income Volatility
Distributions fluctuate due to natural gas prices and administrative expenses, impacted by market volatility.
Tax Regulations
Withholding tax on income connected to U.S. trade or business is governed by IRC Section 1446 and 1441.
- The Trust's ability to pay distributions is affected by fluctuating natural gas prices and market conditions.
- Low natural gas prices may reduce available cash for distribution to unitholders, potentially leading to no distributions in certain periods.
ECA Marcellus Trust I continues to manage its distributions and cash reserves strategically amidst market challenges, aiming to provide sustainable returns to unitholders.