Gulf Coast Ultra Deep Royalty Trust Overview
Pro stress-test →Gulf Coast Ultra Deep Royalty Trust is a statutory trust that holds overriding royalty interests in future production from McMoRan Oil & Gas LLC's ultra-deep exploration prospects in the Gulf of Mexico and South Louisiana. The trust currently has no producing wells or proved reserves; its only Highlander well was shut in in 2023 and plugged and abandoned in early 2024.
Strategic Profile
Pro stress-test →Facing zero royalty income, the trust now relies on annual expense contributions and loans from HOGA, while awaiting production from a new Highlander well spudded in January 2025. Earnings have declined 36.5% annually over the past five years, and the trust has negative shareholders' equity.
Competitive Landscape
Pro stress-test →Trust was created in June 2013 as part of Freeport-McMoRan's acquisition of McMoRan Exploration Co. The trust operates in the ultra-deep Gulf of Mexico exploration sector, competing indirectly with other oil & gas royalty trusts and operators focused on deepwater production.
Industry Context
Gulf Coast Ultra Deep Royalty Trust operates in Oil and gas royalty trusts.
Key facts
Founded: 2012 · Headquarters: Houston, Texas · Revenue: $0 · Market cap: N/A