UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
August 14, 2024
ECA MARCELLUS TRUST I
(Exact name of Registrant as specified in its charter)
Delaware | 001-34800 | 27-6522024 |
(State or other jurisdiction of
incorporation or organization) | (Commission
File
Number) | (I.R.S.
Employer
Identification No.) |
The Bank of New York Mellon Trust Company, N.A.
601 Travis, 16th Floor
Houston, Texas |
77002 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including
area code: (512) 236-6555
Not applicable
(Former name, former address and former fiscal
year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of
the Act: None.
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the
Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging
growth company ¨
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
ITEM 2.02. Results of Operations and Financial Condition.
Attached as Exhibit 99.1
is a press release issued on behalf of the Registrant. The information furnished is not deemed "filed" for purposes of Section 18
of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended.
ITEM 9.01. Financial Statements and Exhibits.
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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ECA Marcellus Trust I |
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By: The Bank of New York Mellon
Trust Company, N.A., |
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as Trustee |
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By: |
/s/ Sarah Newell |
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Name: |
Sarah Newell |
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Title: |
Vice President |
Date: August 14, 2024
Exhibit 99.1
ECA Marcellus Trust
I
ECA Marcellus
Trust I Announces There Will Be No Quarterly Distribution
ECA Marcellus
Trust I
The Bank of New York Mellon Trust
Company, N.A., Trustee
News
Release
For Immediate Release
HOUSTON, Texas August 14, 2024 —
ECA MARCELLUS TRUST I (OTC Pink: ECTM) announced today that there will be no distribution paid for the quarter ended June 30, 2024,
for holders of record as of the close of business on August 23, 2024, as Trust expenses offset net revenues to the Trust for the
quarter.
Since the first quarter of 2019, the Trustee has
been gradually building a cash reserve for the payment of future known, anticipated or contingent expenses or liabilities of the Trust
by withholding cash reserve amounts from each quarterly distribution. In November 2021, the Trustee notified Greylock Energy LLC
that the Trustee had determined to increase the targeted cash reserve from the initially stated amount of approximately $1.8 million,
to approximately $3.8 million. From the first quarter of 2019 through the fourth quarter of 2022, the Trustee withheld an amount from
each distribution equal to the greater of $90,000 or 10% of the funds otherwise available for distribution each quarter. Since achieving
the initial target of $1.8 million in the quarter ended December 31, 2022, the Trustee has been withholding, and currently plans
to continue to withhold, $90,000 per quarter until a total of approximately $3.8 million in cash reserves is withheld. The Trustee
may increase or decrease the targeted amount at any time and may increase or decrease the rate at which it is withholding funds to build
the cash reserve at any time, without advance notice to the unitholders. Cash held in reserve will be invested as required by the trust
agreement. Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or
contingent expenses or liabilities of the Trust eventually will be distributed to unitholders, together with interest earned on the funds.
The Trustee has elected to not withhold any cash reserves this quarter.
The Trust was formed to own royalty interests
in natural gas properties now held by Greylock Energy LLC and certain of its wholly owned subsidiaries (“Greylock”) in the
Marcellus Shale formation in Greene County, Pennsylvania. The Trust is entitled to receive certain amounts of the proceeds attributable
to Greylock’s interest in the sale of production from the properties. As described in the Trust's filings, the amount of the quarterly
distributions is expected to fluctuate from quarter to quarter, depending on the proceeds received by the Trust as a result of production
and natural gas prices and the amount of the Trust's administrative expenses, among other factors. The amount of proceeds received or
expected to be received by the Trust (and its ability to pay distributions) has been and will continue to be directly affected by the
volatility in commodity prices, which have experienced significant fluctuation since the beginning of 2020 as a result of a variety of
factors that are beyond the control of the Trust or Greylock. Low natural gas prices will reduce proceeds to which the Trust is entitled,
which will reduce the amount of cash available for distribution to unitholders and in certain periods could result in no distributions
to unitholders.
Pursuant to Section 1446 of the Internal
Revenue Code of 1986 (the “IRC”), withholding tax on income effectively connected to a United States trade or business allocated
to non-U.S. persons (“ECI”) should be made at the highest marginal rate. Under IRC Section 1441, withholding tax on fixed,
determinable, annual, periodic income from United States sources allocated to non-U.S. persons should be made at a 30% rate unless the
rate is reduced by treaty. Nominees and brokers should withhold at the highest marginal rate on the distribution made to non-U.S. persons.
The Tax Cuts and Jobs Act (the “TCJA”), enacted in December 2017, treats a non-U.S. holder’s gain on the sale of
Trust units as ECI to the extent such holder would have had ECI if the Trust had sold all of its assets at fair market value on the date
of the exchange. The TCJA also requires a transferee of units to withhold 10% of the amount realized on the sale of exchange of
units (generally, the purchase price) unless the transferor certifies that it is not a nonresident alien individual or foreign corporation,
or other exception is available. Pursuant to final Treasury Regulations issued in 2020, this withholding obligation applies to transfers
of units in publicly traded partnerships such as the Trust (which is classified as a partnership for federal and state income tax purposes)
occurring on or after January 1, 2022. This release is intended to be a qualified notice to
nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b) by ECA Marcellus Trust I, and while specific
relief is not specified for Section 1441 income, this disclosure is intended to suffice.
This press release contains statements that are
"forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. All statements contained in this press release, other than statements of historical
facts, are "forward-looking statements" for purposes of these provisions. These forward-looking statements include the amount
and date of any anticipated distribution to unit holders. The anticipated distribution is based, in part, on the amount of cash received
or expected to be received by the Trust from Greylock with respect to the relevant quarterly period. Any differences in actual cash receipts
by the Trust could affect this distributable amount. Other important factors that could cause actual results to differ materially include
expenses of the Trust and reserves for anticipated future expenses and the effect, impact, potential duration or other implications of
the COVID-19 pandemic. Statements made in this press release are qualified by the cautionary statements made in this press release. Neither
Greylock nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release.
An investment in Common Units issued by ECA Marcellus Trust I is subject to the risks described in the Trust's Annual Report on Form 10-K
for the year ended December 31, 2023, and all of its other filings with the Securities and Exchange Commission. The Trust's annual,
quarterly and other filed reports are or will be available over the Internet at the SEC's web site at http://www.sec.gov.
Contact: | ECA Marcellus Trust I |
| The Bank of New York Mellon
Trust Company, N.A., as Trustee |
| Sarah Newell |
| 1(512) 236-6555 |
| 601
Travis Street, 16th Floor Houston, TX 77002 |
ECA Marcellus Trust I (PK) (USOTC:ECTM)
過去 株価チャート
から 7 2024 まで 8 2024
ECA Marcellus Trust I (PK) (USOTC:ECTM)
過去 株価チャート
から 8 2023 まで 8 2024