Gulf Coast Ultra Deep Royalty Trust

Previous wording

The Royalty Trust units are quoted on the OTC Pink tier of the OTC markets. The OTC Pink is a significantly more limited market than the national securities exchanges, which could adversely affect the market price, trading volume, liquidity and resale price of the Royalty Trust units.

Current wording

The Royalty Trust units are quoted on the OTCID Basic Market. The OTCID Basic Market is a significantly more limited market than the national securities exchanges, which could adversely affect the market price, trading volume, liquidity and resale price of the Royalty Trust units.

Previous wording

For information regarding the OTC Pink, see Part I, Item IA. “Risk Factors – There is a limited public market for the Royalty Trust units, which could affect the market price, trading volume and resale price of the Royalty Trust units” of this Form 10-K.

Current wording

For information regarding the OTCID Basic Market, see Part I, Item IA. “Risk Factors – There is a limited public market for the Royalty Trust units, which could affect the market price, trading volume and resale price of the Royalty Trust units” of this Form 10-K.

Previous wording

The onshore Highlander subject interest is the only subject interest that has established commercial production. Abandoning the well eliminated any production from the onshore Highlander subject interest, which also eliminated any proceeds to which the Royalty Trust would be entitled pursuant to its overriding royalty interests during the same period. Unless another well is drilled on the onshore Highlander subject interest and produces hydrocarbons in commercial quantities, the Royalty Trust does not expect to receive any income attributable to its overriding royalty interests and accordingly, does not expect to have any cash available to distribute to Royalty Trust unitholders in future periods. HOGA informed the Trustee that a new well on the onshore Highlander subject interest was spudded on January 30, 2025; however, the future production status of this well remains unknown. Neither the Trustee nor the Royalty Trust unitholders has any right to control or influence operations of the subject interest.

Current wording

The onshore Highlander subject interest is the only subject interest that has established commercial production. Abandoning the well eliminated any production from the onshore Highlander subject interest, which also eliminated any proceeds to which the Royalty Trust would be entitled pursuant to its overriding royalty interests during the same period. Unless another well is drilled on the onshore Highlander subject interest and produces hydrocarbons in commercial quantities, the Royalty Trust does not expect to receive any income attributable to its overriding royalty interests and accordingly, does not expect to have any cash available to distribute to Royalty Trust unitholders in future periods. HOGA previously informed the Trustee that a new well on the onshore Highlander subject interest was spudded on January 30, 2025 and recently reported that the well had reached total depth of 30,862 feet on February 17, 2026; however, the future production status of this well remains unknown. Neither the Trustee nor the Royalty Trust unitholders has any right to control or influence operations of the subject interest.

Previous wording

*Royalty Income.*The onshore Highlander subject interest began commercial production on February 25, 2015. Prior to this date there had been no commercial production of hydrocarbons from any of the subject interests. As there was no production in 2024, the Royalty Trust did not receive any royalties for the year ended December 31, 2024. During the year ended December 31, 2023, the Royalty Trust received royalties of $401,278 from HOGA related to 101,352 Mcf of natural gas production attributable to the onshore Highlander subject interest with average post-production costs of $0.67 per Mcf and an average receipt price of $4.63 per Mcf. Royalty income was lower during the year ended December 31, 2024, as compared to the year ended December 31, 2023 due to the well being shut-in.

Current wording

*Royalty Income.*The onshore Highlander subject interest began commercial production on February 25, 2015. Prior to this date there had been no commercial production of hydrocarbons from any of the subject interests. As there was no production in 2025 or 2024, the Royalty Trust did not receive any royalties for the years ended December 31, 2025 and 2024.

Previous wording

*Administrative Expenses.*For the years ended December 31, 2024 and 2023, the Royalty Trust paid administrative expenses of $899,455 and $469,821, respectively. Administrative expenses, which consisted primarily of audit, legal and trustee expenses incurred in connection with the administration of the Royalty Trust, were higher in 2024 compared to 2023 because no administrative fees were paid in the fourth quarter of 2023. Fourth quarter 2023 administrative expenses were paid in the first quarter of 2024, when the Royalty Trust borrowed funds from FCX.

Current wording

*Administrative Expenses.*For the years ended December 31, 2025 and 2024, the Royalty Trust paid administrative expenses of $562,618 and $899,455, respectively. Administrative expenses, which consisted primarily of audit, legal and trustee expenses incurred in connection with the administration of the Royalty Trust, were higher in 2024 compared to 2025 because fourth quarter 2023 administrative expenses were paid in the first quarter of 2024, when the Royalty Trust borrowed funds from FCX.

Previous wording

Pursuant to the Royalty Trust Agreement, the Depositor has agreed to pay annual trust expenses up to $350,000, with no right of repayment or interest due, to the extent the Royalty Trust lacks sufficient funds to pay administrative expenses. On February 1, 2024, pursuant to this provision, FCX contributed approximately $166,000 for the payment of trust expenses incurred during the year ended December 31, 2023, and contributed the maximum of $350,000 for the payment of trust expenses incurred during the year ended December 31, 2024. In addition to such annual contributions, the Depositor has agreed to lend money, on an unsecured, interest-free basis, to the Royalty Trust to fund the Royalty Trust’s ordinary administrative expenses as set forth in the Royalty Trust Agreement. All funds the Trustee borrows to cover expenses or liabilities, whether from the Depositor or from any other source, must be repaid before the Royalty Trust unitholders will receive any distributions. FCX loaned the Royalty Trust $200,000 during the year ended December 31, 2024. No loans or repayments were made during the year ended December 31, 2023. Pursuant to the Assignment, as of December 31, 2024, FCX assigned to HOGA the promissory note relating to the outstanding loan to the Royalty Trust. To the extent annual trust expenses exceed $350,000, the Royalty Trust may be required to borrow funds from HOGA in the future.

Current wording

Pursuant to the Royalty Trust Agreement, the Depositor has agreed to pay annual trust expenses up to $350,000, with no right of repayment or interest due, to the extent the Royalty Trust lacks sufficient funds to pay administrative expenses. Pursuant to this provision, HOGA contributed $200,750 on April 4, 2025 and $149,250 on May 16, 2025, together representing the maximum contribution of $350,000 for the payment of trust expenses incurred during the year ended December 31, 2025. On February 1, 2024, FCX contributed the maximum of $350,000 for the payment of trust expenses incurred during the year ended December 31, 2024. In addition to such annual contributions, the Depositor has agreed to lend money, on an unsecured, interest-free basis, to the Royalty Trust to fund the Royalty Trust’s ordinary administrative expenses as set forth in the Royalty Trust Agreement. All funds the Trustee borrows to cover expenses or liabilities, whether from the Depositor or from any other source, must be repaid before the Royalty Trust unitholders will receive any distributions. HOGA loaned the Royalty Trust $216,489 during the year ended December 31, 2025. FCX loaned the Royalty Trust $200,000 during the year ended December 31, 2024. Pursuant to the Assignment, as of December 31, 2024, FCX assigned to HOGA the promissory note relating to the outstanding loan to the Royalty Trust. As of December 31, 2025, the outstanding note payable to HOGA was $416,489. To the extent annual trust expenses exceed $350,000, the Royalty Trust may be required to borrow funds from HOGA in the future.

Previous wording

Royalties are paid to the Royalty Trust on the last day of the month following the month in which production payments are received by the Grantor in accordance with the terms of the master conveyance. In accordance with the master conveyance. The Royalty Trust did not receive any royalties in 2024, as the well was shut-in. The Royalty Trust received royalties from HOGA of $401,278 during the year ended December 31, 2023 due to production from the onshore Highlander subject interest.

Current wording

Royalties are paid to the Royalty Trust on the last day of the month following the month in which production payments are received by the Grantor in accordance with the terms of the master conveyance. In accordance with the master conveyance. The Royalty Trust did not receive any royalties in 2025 and 2024, as the well was shut-in.

Previous wording

Royalties received by the Royalty Trust must first be used to (i) satisfy Royalty Trust administrative expenses and (ii) reduce Royalty Trust indebtedness. The Royalty Trust has an outstanding note payable to HOGA of $200,000 outstanding as of December 31, 2024. The Royalty Trust had no indebtedness outstanding as of December 31, 2023. As of December 31, 2024, the Trustee has established a minimum cash reserve of $302,500. As a result, distributions will be made to Royalty Trust unitholders only when royalties received less administrative expenses incurred and repayment of any indebtedness exceeds the minimum cash reserve.

Current wording

Royalties received by the Royalty Trust must first be used to (i) satisfy Royalty Trust administrative expenses and (ii) reduce Royalty Trust indebtedness. The Royalty Trust has an outstanding note payable to HOGA of $416,489 outstanding as of December 31, 2025. As of December 31, 2025, the Trustee has established a minimum cash reserve of $302,500. As a result, distributions will be made to Royalty Trust unitholders only when royalties received less administrative expenses incurred and repayment of any indebtedness exceeds the minimum cash reserve.

Previous wording

There was no distributable income in 2024. Distributable income totaled $197,331 for the year ended December 31, 2023. These distributions are not necessarily indicative of future distributions. The Royalty Trust’s only other sources of liquidity are mandatory annual contributions, any loans and the required standby reserve account or letter of credit from HOGA. As a result, any material adverse change in HOGA’s financial condition or results of operations could materially and adversely affect the Royalty Trust and the underlying Royalty Trust units. See Part I, Item 1A. “Risk Factors” of this Form 10-K for more information.

Current wording

There was no distributable income in 2025 and 2024. The Royalty Trust’s only other sources of liquidity are mandatory annual contributions, any loans and the required standby reserve account or letter of credit from HOGA. As a result, any material adverse change in HOGA’s financial condition or results of operations could materially and adversely affect the Royalty Trust and the underlying Royalty Trust units. See Part I, Item 1A. “Risk Factors” of this Form 10-K for more information.