Marine Petroleum Trust (MARPS) risk factors, FY2026 10-K

Risks related to the Trust’s Business and its Industry

1. 01Current and future oil and natural gas prices fluctuate due to a number of uncontrollable factors. Any depression in oil and natural gas prices would result in lower royalty payments to Marine and lower cash distributions to its unitholders
2. 02Moreover, government regulations, such as the regulation of natural gas transportation and price controls, can affect oil and natural gas prices in the long term
3. 03Marine is unable to acquire royalty interests in any more leases
4. 04Royalty interests are depleting assets and may deplete faster than expected or in their entirety
5. 05Pandemics or other public health concerns, such as COVID-19, or the novel coronavirus, and any measures taken to mitigate such health concerns, could adversely affect the business and operations of the operators, which in turn could have an adverse effect on Trust distributions
6. 06The operators of the oil and natural gas leases are subject to extensive governmental regulation
7. 07The owner of any properties in the leases may transfer any of the properties to another unrelated third party, which could reduce the amount of royalty payments that are received
8. 08The owner of any properties in the leases may abandon any property, terminating the related royalty interest Marine may hold
9. 09The Trustee, Marine and the Trust’s unitholders do not control the operation or development of the properties in the leases and have little influence over their operation or development

Risks Related to the Units

1. 10The market price for the units may not reflect the value of the royalty interests held by Marine
2. 11Our units have been thinly traded and an active trading market for our units may not develop
3. 12Operating risks for the working interest owners’ interests on the leases can adversely affect distributions
4. 13Failure to collect royalty payments from working interest owners could adversely affect Marine’s distributions to its unitholders
5. 14Marine’s royalty interest can be sold and the Trust can be terminated
6. 15Important reserve and other information with respect to the particular leases subject to Marine’s royalty interest is unreasonably difficult to obtain
7. 16The Trustee may be subject to attempted cybersecurity disruptions from a variety of sources including state-sponsored actors
8. 17Terrorism and continued geopolitical hostilities, including the war in Eastern Europe and the Middle East, could adversely affect Marine’s distributions to its unitholders or the market price of its units
9. 18Unitholders have limited voting rights
10. 19The limited liability of the unitholders is uncertain
11. 20Cash held by the Trustee is not insured by the Federal Deposit Insurance Corporation
12. 21Financial information of Marine is not prepared in accordance with generally accepted accounting principles in the United States
13. 22If the Trust becomes subject to the Texas franchise tax, the Trustee may have to withhold amounts from future distributions to pay the tax liability