ECA MARCELLUS TRUST I (NYSE: ECT) announced today that although gas production was curtailed during the quarter while the operator was awaiting a final permit to increase compression capacity, the Trust’s distribution for the quarter ended December 31, 2011 will be $.594 per unit, which is expected to be distributed on or before February 29, 2012 to holders of record as of the close of business on February 21, 2012. During the quarter production exceeded the targeted estimate by 22.9%.
The Trust was formed by Energy Corporation of America ("ECA") to own royalty interests in natural gas properties owned by ECA in the Marcellus Shale formation in Greene County, Pennsylvania, and is entitled to receive certain amounts of the proceeds attributable to ECA’s interest in the sale of production from the properties. As described in the Trust's filings, the amount of the quarterly distributions is expected to fluctuate from quarter to quarter, depending on the proceeds received by the Trust as a result of production and natural gas prices and the amount of the Trust's administrative expenses, among other factors.
Energy Corporation of America, the sponsor of the ECA Marcellus Trust I announced that it will host a conference call on February 9 th at 12:00 pm EST. The call information is 1-866-277-1181 (domestic) or 1-617-597-5358 (international) the participant code for both numbers is 56592721. The call may also be accessed via the internet at http://www.media-server.com/m/p/ka4jm78f. A replay of the call can be accessed from February 9, 2012 (2:00 PM, EST) through February 16, 2012 (1:59 PM, EST) by calling 1-888-286-8010 (domestic) or 1-617-801-6888 (international). The participant code for both replay lines is 40431694.
Pursuant to IRC Section 1446, withholding tax on income effectively connected to a United States trade or business allocated to foreign partners should be made at the highest marginal rate. Under Section 1441, withholding tax on fixed, determinable, annual, periodic income from United States sources allocated to foreign partners should be made at 30% of gross income unless the rate is reduced by treaty. This release is intended to be a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b) by ECA Marcellus Trust I, and while specific relief is not specified for Section 1441 income, this disclosure is intended to suffice. Nominees and brokers should withhold 35% of the distribution made to foreign partners.