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Eastern American Natural Gas Trust Depos Reports Operating Results (10-Q)

May 07, 2010 | About:
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10qk

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Eastern American Natural Gas Trust Depos (NGT) filed Quarterly Report for the period ended 2010-03-31.

Eastern American Natural Gas Trust Depos has a market cap of $130.4 million; its shares were traded at around $22.0875 with and P/S ratio of 14.7. The dividend yield of Eastern American Natural Gas Trust Depos stocks is 4.7%. Eastern American Natural Gas Trust Depos had an annual average earning growth of 0.6% over the past 10 years.
This is the annual revenues and earnings per share of NGT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NGT.


Highlight of Business Operations:

The "Operating Cost Charge" for 2010 is based on an annual rate of $658,604, and for 2009 was based on an annual rate of $648,448. As provided in the Conveyances, the Operating Cost Charge will fluctuate based on the lesser of (A) five percent (5%) or (B) a percentage, not less than zero percent (0%), equal to the percentage increase, if any, in the average weekly earnings of Crude Petroleum and Gas Production Workers for the last calendar year, as shown by the index of average weekly earnings of Crude Petroleum and Gas Production Workers, as published by the United States Department of Labor, Bureau of Labor Statistics, based on a December-to-December comparison.

The Trust did not have any contractual obligations as of March 31, 2010. At March 31, 2010, the Trust had Trust General and Administrative Expenses Payable of $368,939 and Distributions Payable of $1,308,025.

The Trust's Distributable Income was $1,308,025 for the three months ended March 31, 2010 as compared to $1,954,140 for the three months ended March 31, 2009. This decrease was due to a decrease in Royalty Income for the three months ended March 31, 2010 of $2,152,833 as compared to the three months ended March 31, 2009 of $2,665,596. The decrease in Royalty Income was related to a decrease in the price payable to the Trust under the Gas Purchase Contract as discussed below ($5.724 per Mcf for the three months ended March 31, 2010 as compared to $6.766 per Mcf for the three months ended March 31, 2009). This decrease was also related to a decrease in production of gas attributable to the Net Profits Interests for the three months ended March 31, 2010 (376 MMcf) as compared to the three months ended March 31, 2009 of (395 MMcf). Taxes on Production and Property were $165,578 for the three months ended March 31, 2010 as compared to $201,002 for the three months ended March 31, 2009. The decrease in taxes is due directly to the decrease in Royalty Income as discussed above. General and Administrative Expenses were $514,600 for the three months ended March 31, 2010 as compared to $348,342 for the three months ended March 31, 2009. The increase in General and Administrative Expenses was due primarily to an increase in professional fees.

for the corresponding three month period ended March 31, 2009 due to a decrease in the average spot market price for gas delivered at the Henry Hub near Henry, Louisiana ($4.903 per Dth for the three months ended March 31, 2010 as compared to $5.851 per Dth for the three months ended March 31, 2009).

For the calendar quarter ended March 31, 2010, the high and low closing prices of the Treasury Obligations (which have $1,000 face principal amount), as quoted in the over-the-counter market for United States Treasury obligations were $954.20 and $936.60, respectively. On March 31, 2010, the closing price of the Treasury Obligations, as quoted on such market, was $948.70.

The Trust does not engage in any operations, and does not utilize market risk sensitive instruments, either for trading purposes or for other than trading purposes. As described elsewhere herein, the Depositary Units consist of beneficial ownership of one unit of beneficial interest in the Trust and a $20 face amount beneficial ownership interest in a $1,000 face amount zero coupon Treasury Obligation maturing on May 15, 2013. High and low price information for the Treasury Obligations is included under Item 2. As described elsewhere herein, gas production attributable to the Net Profits Interests is sold to a wholly owned subsidiary of ECA pursuant to the Gas Purchase Contract described herein, and the Trust's quarterly distributions are highly dependent on the price payable to the Trust for gas production attributable to the Net Profits Interests. Natural gas prices can fluctuate widely in response to many factors, all of which are out of the control of the Trust, the Trustee and ECA.

Read the The complete Report

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