ECA Marcellus Trust I announced that the distribution for the quarter ended September 30, 2026, will be $0.021 per unit. The payment is expected to be made on or before November 30, 2026, to holders of record as of the close of business on November 23, 2026.
The Trustee, The Bank of New York Mellon Trust Company, N.A., has been withholding funds from quarterly distributions to build a cash reserve. Since the first quarter of 2019, the Trustee has withheld an amount equal to the greater of $90,000 or 10% of funds available for distribution each quarter. In November 2021, the Trustee increased the targeted cash reserve from approximately $1.8 million to approximately $3.8 million. The Trustee withheld approximately $90,000 this quarter to continue building this reserve.
The Trust was formed to own royalty interests in natural gas properties held by Greylock Energy LLC in the Marcellus Shale formation in Greene County, Pennsylvania. The Trust receives proceeds from Greylock's interest in the sale of production from these properties. The amount of quarterly distributions is expected to fluctuate based on proceeds received from production and natural gas prices, as well as administrative expenses.
The release also outlines tax withholding requirements. Under Section 1446 of the Internal Revenue Code, withholding tax on income effectively connected to a U.S. trade or business allocated to non-U.S. persons should be made at the highest marginal rate. Additionally, a transferee of units is generally required to withhold 10% of the amount realized on the sale or exchange of units unless specific exceptions apply.
