One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Mesa Royalty Trust
MTR · NYQ · Energy · Oil & Gas E&P
Current price
$2.07
52-week range
$2.02 - $5.83
Market cap
$3.86M
Balance sheet
Healthy
5.29x Adequate
Net cash $120.69K. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Dividend yield is 7.2% with 41-year payout history.
- Risk Operating margin compressed from 88.9% to 75.6% over 3 years.
What this company does
Mesa Royalty Trust
Mesa Royalty Trust makes money by owning a share of oil and gas that gets pulled out of the ground in places like Kansas and New Mexico. Think of it like owning a piece of a pizza and getting a slice every time someone serves one. This matters because their income directly depends on how much oil and gas is found and sold.
How the company got here
Mesa Royalty Trust was established in 1979 and is headquartered in Houston, Texas. It was formed to hold overriding royalty interests in oil and gas properties. These interests represent a right to a portion of the revenue generated from the sale of oil and gas produced from specific fields. The company's history is tied to the development and production of these long-standing oil and gas fields.
What it actually does
Mesa Royalty Trust doesn't explore for or produce oil and gas itself. Instead, it owns a share of the revenue from oil and gas that is produced by other companies. Think of it like owning a piece of the royalty stream from a song; you get paid every time the song is played, but you didn't write or perform it. Mesa's income comes from the sale of oil and natural gas extracted from properties where it holds these special royalty interests.
Oil and Gas Royalty Interests
The core business of Mesa Royalty Trust is its ownership of overriding royalty interests in oil and gas producing properties. These interests are primarily located in two major fields: the Hugoton field in Kansas and the San Juan Basin field, which spans northwestern New Mexico and southwestern Colorado. When oil and gas are extracted and sold from these specific properties by the operating companies, Mesa receives a predetermined portion of the revenue, known as a royalty payment. This segment represents the entirety of Mesa's operations, as it is the sole source of its income.
What management is betting on now
Mesa Royalty Trust's strategy is largely dependent on the production levels and commodity prices of the oil and gas fields in which it holds royalty interests. While the company doesn't actively manage operations, its success relies on the continued efficient production by the operators of these fields. Fluctuations in oil and natural gas prices directly impact the revenue Mesa receives. Therefore, management's focus is on the long-term viability and production efficiency of the underlying properties to ensure a steady stream of royalty income.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $2.07
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $120,695 - more cash than debt. Interest coverage 5.3x.
Net debt
$-120.69K
Interest coverage
5.29x
Mesa Royalty Trust is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
MTR
BASELINE
Mesa Royalty Trust
Total debt $0.00 Interest coverage 5.29x This is the baseline the peer rows are being compared against.
What you should know
The case for and against MTR
1 Reward
1 Risk
Rewards
-
Dividend yield is 7.2% with 41-year payout history.
Risks
-
Operating margin compressed from 88.9% to 75.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
10.36x
Forward P/E
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P/B
1.23x
P/S
6.98x
EV/EBITDA
—
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
100.0%
Operating margin
75.6%
Net margin
66.0%
ROE
11.6%
ROA
6.9%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
17.12x
Quick ratio
1.00x
Total debt
$0.00
Total cash
$120.69K
Growth
How the business has been compounding
Revenue TTM
$553.16K
Revenue 5Y CAGR
-47.3%
EPS TTM
0.20
EPS 5Y CAGR
-48.2%
Cash flow
How much cash the business throws off
Operating CF TTM
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Free CF TTM
—
FCF margin
—
Dividend
Shareholder payout
Yield
7.2%
Payout ratio
90.4%
Last ex-div date
2026-05-29