Executive Summary

Q2 2025 distributable income was $345,074, resulting in a $0.020 per unit distribution; record date Aug 25, payable on or before Aug 29 .
Natural gas pricing improved materially: average realized price rose to $2.01/Mcf (from $0.83/Mcf YoY), offset by higher post‑production costs and a 7.9% decline in production volumes to 436 MMcf .
Trailing four‑quarter gross proceeds were ~$3.3M, comfortably above the $1.5M early‑termination threshold, but management cautions volatility in commodity prices and volumes could threaten compliance over time .
Columbia Gas transportation tariffs increased on April 1, 2025 (initially to ~$0.725/MMBtu), then moved to Period I Settlement Rates of $0.4436/MMBtu effective June 1, 2025, with potential refunds expected; impact to the Trust is described as not significant .
No Wall Street consensus estimates (EPS, revenue, EBITDA, target price, recommendation) were available via S&P Global for Q2 2025, reflecting limited sell‑side coverage of the Trust*.

What Went Well and What Went Wrong

What Went Well

Average realized price improved to $2.01/Mcf, up $1.18/Mcf YoY, driven by higher average sales prices (pre costs up to $2.74/Mcf from $1.44/Mcf), partially offset by a wider negative basis .
Distributable income returned vs. Q2 2024 (zero), enabling a $0.020/unit payout in Q2 2025 .
Trustee affirmed no impairment was recognized and highlighted trailing four‑quarter gross proceeds of ~$3.3M above the $1.5M termination trigger, sustaining the Trust’s continuity .
- “Gross proceeds to the Trust attributable to the Royalty Interests during the three‑month period ended June 30, 2025 were $0.9 million and totaled approximately $3.3 million for the four consecutive quarters ended June 30, 2025.”

What Went Wrong

Volumes decreased 7.9% YoY to 436 MMcf due to normal declines; six‑month production fell 13% YoY, as compressor maintenance added headwinds .
Post‑production costs rose (Q2: $0.72/Mcf vs. $0.61/Mcf YoY) primarily from Columbia’s tariff changes, dampening the benefit of higher commodity pricing .
The Trustee continued to withhold $90,000 from the quarterly distribution to build reserves toward the ~$3.8M target, limiting cash paid to unitholders .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Royalty Income ($USD)	$391,398	$1,278,647	$878,516
General & Administrative Expense ($USD)	$501,286	$281,522	$449,974
Interest Income ($USD)	$36,670	$30,816	$33,949
Income Available Prior to Cash Reserves ($USD)	($73,218)	$1,027,940	$462,491
Cash Reserves Withheld ($USD)	$102,231	$90,000	$90,000
Distributable Income ($USD)	$0	$911,520	$345,074
Distribution per Unit ($USD)	$0.000	$0.052	$0.020

KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Production (MMcf)	474	441	436
Avg Realized Price ($/Mcf)	$0.83	$2.90	$2.01
Avg Sales Price pre Costs ($/Mcf)	$1.44	$3.50	$2.74
Basis ($/MMBtu)	-$0.48	-$0.25	-$0.79
Post-Production Costs ($/Mcf)	$0.61	$0.60	$0.72

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Reserve Withholding Policy	Ongoing	Withhold $90k per quarter until ~$3.8M target reached	Continued $90k withheld in Q2; total withheld ~$2.5M plus ~$0.3M interest toward target as of 6/30/25	Maintained
Firm Transportation Tariff (Columbia)	Effective June 1, 2025 (Period I Settlement)	~$0.35/MMBtu through Mar 31, 2025	$0.4436/MMBtu invoiced for June 2025; prior ~$0.725/MMBtu from Apr 1 (subject to refund)	Increased vs pre‑Apr 1; lower vs initial increase
Potential Tariff Refunds	H2 2025 / Q1 2026	N/A	Refunds expected within ~60 days of final FERC settlement approval; Trust’s share not expected to be significant	New item
Distribution Timing	Q2 2025	N/A	Record date Aug 25, payable on/before Aug 29; $0.020 per unit	Announced

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available; themes compiled from the Trustee’s Discussion and Analysis in 10‑Q.

Topic	Previous Mentions (Q4 2024 & Q1 2025)	Current Period (Q2 2025)	Trend
Tariffs / Regulatory (FERC)	Columbia filed to increase tariffs effective Apr 1, 2025; rate case subject to refund	Period I Settlement Rates at $0.4436/MMBtu in June; final settlement filed Aug 13; refunds expected; Trust impact not significant	Resolution progressing; partial relief vs initial increase
Commodity Prices	Weighted avg NYMEX rising; realized price Q1: $2.90/Mcf	Realized price Q2: $2.01/Mcf; pre‑cost price $2.74/Mcf; wider negative basis	Pricing up YoY; basis widened QoQ
Volumes/Operations	Q1 production -17.4% YoY (441 MMcf) due to declines	Q2 production -7.9% YoY (436 MMcf); six months -13% YoY; compressor maintenance cited	Normal declines persist; maintenance headwinds
Termination Threshold	Trailing four quarters ~$2.8M by Q1	Trailing four quarters ~$3.3M by Q2; threshold remains $1.5M	Cushion widened, but volatility risk remains
Cash Reserve Policy	Ongoing withholding of $90k/quarter toward ~$3.8M target	Continued $90k withheld; cumulative ~$2.5M plus ~$0.3M interest as of 6/30/25	Maintained

Management Commentary

“Gross proceeds to the Trust…during the three‑month period ended June 30, 2025 were $0.9 million and totaled approximately $3.3 million for the four consecutive quarters ended June 30, 2025.”
“The average price realized for the three months ended June 30, 2025 increased $1.18 per Mcf to $2.01 per Mcf… The average sales price, before post‑production costs, increased… to $2.74 per Mcf.”
“Production decreased 7.9% from 474 MMcf… to 436 MMcf… due to normal declines.”
“Columbia invoiced Greylock Production at… $0.4436 per MMBtu for June 2025… [refunds]… with Greylock Production expecting to distribute to the Trust… during Q4 2025 or Q1 2026… not expected to be significant.”
“No impairment in the Underlying Properties was recognized… [Q2 2025].”

Q&A Highlights

Not applicable; no earnings call transcript was available for Q2 2025. Key clarifications stem from the 10‑Q MD&A regarding tariffs, basis/pricing dynamics, production declines, reserve policy, and termination thresholds .

Estimates Context

No S&P Global Wall Street consensus estimates were available for EPS, revenue, EBITDA, target price, or recommendation for Q2 2025, reflecting limited analyst coverage of ECA Marcellus Trust I*.
Actuals used for benchmarking: Royalty income Q2 2025 $878,516; Q1 2025 $1,278,647; Q2 2024 $391,398 .

Metric	Q2 2024	Q1 2025	Q2 2025
Primary EPS Consensus Mean	N/A*	N/A*	N/A*
Revenue Consensus Mean	N/A*	N/A*	N/A*
EBITDA Consensus Mean	N/A*	N/A*	N/A*
Target Price Consensus Mean	N/A*	N/A*	N/A*
Consensus Recommendation (Text)	N/A*	N/A*	N/A*

*Values retrieved from S&P Global.

Key Takeaways for Investors

Distribution resumed versus Q2 2024 (zero), but was constrained by continued $90k quarterly reserve withholding; cash conservation remains a priority .
Pricing tailwinds vs. 2024 are durable but partially offset by post‑production/transport cost inflation; monitor the final FERC settlement and refund flow‑through to the Trust .
Volume declines are structural (mature wells, no new drilling) and will continue to pressure gross proceeds; any operational maintenance (e.g., compressor) can exacerbate near‑term dips .
Trailing four‑quarter proceeds are above termination threshold, but the buffer is sensitive to commodity volatility and basis; downside price shocks could re‑introduce termination risk .
With no analyst coverage/consensus, price discovery is more likely driven by realized distributions and natural gas price moves rather than earnings “beats/misses” dynamics*.
Short‑term trading: catalysts include FERC settlement approval and any tariff refunds (modest impact), plus NYMEX/basis moves; distribution announcements (record/pay dates) can be trading events .
Medium‑term thesis: the Trust is a depleting asset tied to NG pricing and post‑production/transport cost structure; disciplined reserve building and visibility into cost trends are central to sustaining distributions .

Appendix: Prior Two Quarters’ Distribution Announcements

Q1 2025: $0.052 per unit; record date May 20, payable on/before May 30 .
Q4 2024: $0.020 per unit; record date Feb 24, payable on/before Mar 3 .

ECA Marcellus Trust I (ECTM)·Q2 2025 Earnings Summary