ECA Marcellus Trust I (OTCMKTS:ECTM) is a statutory royalty trust formed to hold net profit interests in oil and natural gas properties within the Marcellus Shale play of the Appalachian Basin. The trust’s assets consist of interests in producing wells and associated infrastructure located primarily in southwestern Pennsylvania. Revenues are generated from the sale of natural gas, natural gas liquids and condensate produced from these properties, with net profits distributed to unitholders on a monthly basis.
The trust’s acreage spans multiple counties, including Greene, Washington and Westmoreland, where drilling activity has been driven by major operators focusing on the Marcellus Shale’s prolific gas-bearing formations. Production and gathering operations are overseen by third-party working interest owners and operators, while the trust itself does not engage in direct drilling or exploration. This structure allows unitholders to participate in the performance of a diversified gas portfolio without the capital expenditure and operational risks associated with drilling programs.
ECA Marcellus Trust I completed its initial public offering in early 2010, raising capital through a combination of public units and private placements. The trust was sponsored by EnCap Investments, a Houston-based private equity firm specializing in energy and natural resources. Since inception, the trust has adhered to a single-asset structure with no incentive distribution rights or ongoing acquisition obligations, providing transparent cash-flow distributions tied directly to net profits from the underlying properties.
The governance of the trust is overseen by a board of independent trustees, supported by administrative and accounting services provided by EnCap Energy Capital. Trust operations focus on maintaining accurate production and revenue reporting, managing relationships with operators and joint interest owners, and ensuring timely distributions to unitholders. With its targeted exposure to the Marcellus Shale and a streamlined management framework, ECA Marcellus Trust I offers investors a pure-play vehicle in one of North America’s leading natural gas basins.
