Executive Summary

Q1 2021 distribution was approximately $0.3 million, or $0.0110 per unit, on revenues of $0.875 million; sequentially stronger vs Q4 2020 ($0.0029 per unit, $0.732 million revenues) as average oil, gas and NGL prices increased while volumes slightly decreased .
The Trust executed the sale of all overriding royalty interests to SandRidge Exploration & Production for $4.85 million, effective April 1, 2021; the Trust will not make any further regular quarterly cash distributions given the purchaser is entitled to production revenues from April 1 onward .
Trustee guidance shifted: although an August 2021 distribution of net sale proceeds is contemplated, cash will likely be withheld pending resolution of securities litigation, delaying unitholder distributions; units are expected to be canceled after winding up .
Stock reaction catalyst: asset sale and cessation of regular distributions; improving commodity prices (especially oil and NGL) aided Q1 cash generation but are moot for future distributions under the sale .

What Went Well and What Went Wrong

What Went Well

Sequential improvement: Q1 revenues rose to $0.875 million vs $0.732 million in Q4, and distributable income per unit increased to $0.0110 vs $0.0029, driven by higher realized prices; “average oil, natural gas and NGL prices increased… Combined sales volumes slightly decreased” .
Strategic clarity: sale of all ORRIs completed for $4.85 million, providing an exit path and simplifying winding up .
Reserves achieved: targeted cash reserve fully funded; no additional reserve withholding from the Q1 distribution .

What Went Wrong

Year-over-year softness: Q1 revenues fell to $0.875 million from $1.019 million (-14.1%), and distributable income available to unitholders declined to $0.308 million from $0.360 million (-14.4%); per unit distribution fell to $0.0110 from $0.0130 (-15.4%) .
Volume headwinds: combined sales volumes decreased to 51 MBoe vs 54 MBoe in Q4 and 56 MBoe in Q3 despite stronger prices .
Distribution cessation and delay: no further regular quarterly distributions post-April 1 effective date; net sale proceeds distribution likely delayed pending litigation reserve .

Financial Results

Quarterly trend (oldest → newest):

Metric	Q3 2020	Q4 2020	Q1 2021
Revenue ($USD thousands)	$619	$732	$875
Expenses ($USD thousands)	$564	$556	$567
Distributable income (reported) ($USD thousands)	$55	$176	$308
Additional cash reserve ($USD thousands)	$55	$96	$0
Distributable income available to unitholders ($USD thousands)	$0	$80	$308
Distributable income per unit ($USD)	$0.0000	$0.0029	$0.0110
Distributable income margin (%)	0.0% ()	10.9% ()	35.2% ()
EPS ($USD)	N/A	N/A	N/A

Year-over-year comparison:

Metric	Q1 2020	Q1 2021	YoY Change
Revenue ($USD thousands)	$1,019	$875	-14.1% ( )
Distributable income available to unitholders ($USD thousands)	$360	$308	-14.4% ( )
Distributable income per unit ($USD)	$0.013	$0.011	-15.4% ( )

KPIs (production and realized pricing):

KPI	Q3 2020	Q4 2020	Q1 2021
Oil (MBbl)	5	5	4
NGL (MBbl)	18	17	16
Natural Gas (MMcf)	199	186	183
Combined (MBoe)	56	54	51
Oil avg price ($/Bbl)	$38.32	$38.06	$49.69
NGL avg price ($/Bbl)	$10.19	$10.62	$16.91
Gas avg price ($/Mcf)	$1.19	$1.83	$2.09
Gas avg price incl. post-prod ($/Mcf)	$0.47	$1.15	$1.39

Segment breakdown: Not applicable (royalty trust; no operating segments) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Regular quarterly cash distributions	Q2 2021 onward	Continue quarterly distributions during winding up to the extent cash is available	No further regular quarterly cash distributions post April 1, 2021 effective sale	Lowered/ceased
Net sale proceeds distribution	Q3 2021	Sale completion and net proceeds distribution by Q3 2021	Trustee required to distribute on Aug 2021 date, but expects no cash available until securities litigation resolved	Delayed/contingent
Cash reserve withholding	Q1 2021	Withheld ~$96k in Q4 to reach target; ongoing withholding historically	Targeted reserve funded in full; no additional reserve withheld in Q1	Maintained target; no further withholding
Asset sale (ORRIs)	Q1 2021	Marketing process; SandRidge ROFR disclosed	Sale completed for $4.85M; effective date April 1, 2021	Completed
Bid reimbursement to third-party bidder	Q2 2021	N/A	Trust’s share ≈ $50,000 of reimbursement; total reimbursement $98,367.75 split 50/50 between buyer and Trust (5% cap)	New obligation

Earnings Call Themes & Trends

Note: No earnings call transcript found for Q1 2021; the Trust communicated via press releases .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2021)	Trend
Commodity prices	Q3/Q4 2020 noted price increases vs prior periods, but still low overall; volumes slightly decreased	“Average oil, natural gas and NGL prices increased… Combined sales volumes slightly decreased”	Improving prices; modest volume decline
Distribution outlook	Q3 2020: no distribution; dissolution trigger; Q4 2020: small distribution $0.0029; plan to continue if cash available	$0.0110 distribution; post-sale no further regular quarterly distributions	Near-term improvement; structural cessation ahead
Dissolution and winding up	Q3 2020: Dissolution triggered; sale process initiated	Sale executed; winding up continues; units expected to be canceled after process	Progressing to completion
Legal/litigation reserve	Reserve plan disclosed; building cash reserves	Expectation that net sale proceeds will be withheld until securities litigation resolved	Heightened reserve impact; delays distributions
Production volumes	Slightly decreasing trend noted	Slight decrease vs Q4; 51 MBoe vs 54 MBoe	Gradual decline (no new development wells)

Management Commentary

“SANDRIDGE MISSISSIPPIAN TRUST I… announced a quarterly distribution… of approximately $0.3 million, or $0.0110 per unit” .
“During the three-month production period ended February 28, 2021, average oil, natural gas and natural gas liquids (“NGL”) prices increased… Combined sales volumes slightly decreased compared to the previous period” .
“On April 22, 2021… for the sale of all of the overriding royalty interests… Accordingly… the Trust will not receive any further proceeds… and therefore will not make any further regular quarterly cash distributions to the Trust unitholders” .
“The Trustee… does not expect that there will be cash available for distribution until [the securities] litigation has been resolved” .

Q&A Highlights

No earnings call or Q&A was held; all disclosures were provided via 8-K and press releases .

Estimates Context

Wall Street consensus EPS/revenue estimates via S&P Global were not available for SDTTU for Q1 2021; therefore, comparisons to estimates are not applicable. As a dissolving OTC royalty trust with no regular earnings calls, Street coverage appears limited .

Key Takeaways for Investors

Q1 showed stronger cash generation on higher commodity prices: $0.875 million revenues, $0.0110 per unit distribution, despite lower volumes .
Strategic endpoint is set: sale of ORRIs for $4.85 million completed; effective date April 1; no further regular distributions going forward .
Expect timing risk on net proceeds: Trustee currently expects to withhold distribution of sale proceeds due to securities litigation reserve; distributions could be delayed until resolution .
Reserve fully funded; no additional withholding against Q1 distribution; but a ~$50,000 reimbursement obligation related to the third-party bidder will reduce proceeds .
Volumes are in structural decline (no new development wells), partially offset by improved realized prices; trends support short-term cash strength but are irrelevant post-sale .
Trading implications: near-term catalysts are the timing and size of net proceeds distribution vs reserves; unit cancellation follows winding up, limiting longer-term upside .
Thesis considerations: this is now a liquidation scenario—focus on expected net proceeds after sale-related costs and reserves; commodity price improvements help only insofar as they affected the final pre-sale distribution .

SandRidge Mississippian Trust I (SDTTU)·Q1 2021 Earnings Summary