<PAGE> 1
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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
['X'] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from .............. to ...............
Commission file number 1-8581
FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
TEXAS 72-6108468
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
TEXAS COMMERCE BANK NATIONAL ASSOCIATION 77002
CORPORATE TRUST DIVISION (Zip Code)
712 MAIN STREET
HOUSTON, TEXAS
(Address of principal executive offices)
</TABLE>
Registrant's telephone number, including area code: (713) 216-5447
....................................
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes 'X' No
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<PAGE> 2
FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Part I. Financial Information
Item 1. Financial Statements:
Statements of Royalty Proceeds and Distributable Cash........................... 3
Statements of Assets, Liabilities and Trust Corpus.............................. 3
Statements of Changes in Trust Corpus........................................... 3
Notes to Financial Statements................................................... 4
Report of Independent Public Accountants........................................ 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of
Operations...................................................................... 8
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K.......................................... 11
Signature............................................................................ 12
</TABLE>
--2--
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST
STATEMENTS OF ROYALTY PROCEEDS AND DISTRIBUTABLE CASH
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------- ---------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Royalty proceeds...................... $ 4,790,500 $ 453,427 $ 5,082,866 $ 2,546,581
Trust administrative expenses......... (125,291) (154,878) (186,408) (416,292)
Interest earned....................... 55,969 11,958 73,382 18,394
Reserve for future Trust expenses..... (173,755) (310,507) (422,417) (2,148,683)
----------- ----------- ----------- -----------
Distributable cash.................... $ 4,547,423 $ -- $ 4,547,423 $ --
========== ========== ========== ==========
Distributable cash per Unit........... $ 0.30365 $ -- $ 0.30365 $ --
========== ========== ========== ==========
Units outstanding..................... 14,975,390 14,975,390 14,975,390 14,975,390
========== ========== ========== ==========
</TABLE>
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
ASSETS 1995 1994
------------- -------------
<S> <C> <C>
(UNAUDITED)
Cash and short-term investments............................... $ 6,947,423 $ 1,977,583
Net overriding royalty interests in oil and gas properties.... 189,875,741 189,875,741
Less, adjustment to recorded cost of net overriding royalty
interests in oil and gas properties......................... (25,431,543) (25,431,543)
Less, accumulated amortization of net overriding royalty
interests................................................... (164,260,985) (164,231,280)
------------- -------------
Total assets........................................ $ 7,130,636 $ 2,190,501
============ ============
LIABILITIES AND TRUST CORPUS
Distributions payable to Unit holders......................... $ 4,547,423 $ --
Reserve for future Trust expenses............................. 2,400,000 1,977,583
Trust corpus (14,975,390 Units of Beneficial Interest
authorized,
issued and outstanding)..................................... 183,213 212,918
------------- -------------
Total liabilities and trust corpus.................. $ 7,130,636 $ 2,190,501
============ ============
</TABLE>
STATEMENTS OF CHANGES IN TRUST CORPUS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
-----------------------------
1995 1994
------------ ------------
<S> <C> <C>
Trust corpus, beginning of year................................. $ 212,918 $ 260,059
Royalty proceeds and interest earned, net of trust
administrative expenses and reserve for future Trust
expenses...................................................... 4,547,423 --
Distributions payable to Unit holders........................... (4,547,423) --
Amortization of net overriding royalty interest................. (29,705) (47,141)
------------ ------------
Trust corpus, end of period..................................... $ 183,213 $ 212,918
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
--3--
<PAGE> 4
FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS
1. THE TRUST
Freeport-McMoRan Oil and Gas Royalty Trust (the Trust) was created
effective September 30, 1983. On that date, Freeport-McMoRan Inc. (FTX)
transferred a net overriding royalty interest in certain offshore oil and gas
properties to a Partnership (the Partnership) equal to 90 percent of the Net
Proceeds (as defined in the Conveyance referred to below) from FTX's working
interests in such properties and conveyed a 99.9 percent general partnership
interest in the Partnership to the Trust. Such net overriding royalty interest
is referred to herein as the "Royalty". The Overriding Royalty Conveyance which
created the Royalty is referred to herein as the "Conveyance". The Trust is
passive, with Texas Commerce Bank National Association as Trustee. The Trustee
has only such powers as are necessary for the collection and distribution of
revenues attributable to the Royalty, the payment of Trust liabilities and the
protection of Trust assets.
2. THE ROYALTY
Freeport-McMoRan Oil & Gas Company (the Working Interest Owner), a division
of FTX, presently owns the oil and gas interests burdened by the Royalty. The
Conveyance provides that the owner of the interests burdened by the Royalty will
calculate and pay monthly to the Partnership an amount equal to 90 percent of
the net proceeds for the preceding month. Net proceeds generally consist of the
excess of gross revenues received from the Royalty Properties (Gross Proceeds),
on a cash basis, over operating costs, capital expenditures and other charges,
on an accrual basis (Net Proceeds).
3. DISTRIBUTIONS TO UNIT HOLDERS
A cumulative excess Class A cost carry-forward of $476,435 as of December
31, 1994, was eliminated in February 1995 and funding of the $2.4 million Trust
administrative expense reserve (Note 6) was completed in April 1995 by means of
the settlement payment (Note 5). On July 10, 1995, approximately $4.5 million or
$0.30365 per unit of interest in the Trust (Unit) was distributed for the
quarter ended June 30, 1995. This cash distribution included interest earned
from the applicable record dates prior to the date of distribution.
4. GAS BALANCING ARRANGEMENTS
As a result of past curtailments in gas takes by the principal purchaser of
production from the Royalty Properties, certain quantities of gas have been sold
by other parties with interests in the Royalty Properties pursuant to gas
balancing arrangements. Proceeds from gas produced from the Royalty Properties
but sold by other parties pursuant to such balancing arrangements
(underproduction) are not included in Adjusted Gross Proceeds for purposes of
calculating the Royalty. In the future, the Working Interest Owner will be
entitled to sell volumes equal to such underproduction or
--4--
<PAGE> 5
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
receive cash settlements. On certain of the Royalty Properties, a cash
settlement may be required, depending on future results, due to the lack of
sufficient remaining reserves from which to makeup any underproduction. As of
June 30, 1995, the unrecovered quantity of gas sold by third parties pursuant to
such gas balancing arrangements during the period from October 1, 1983 through
March 31, 1995 was approximately 1.8 billion cubic feet (bcf), net to the Trust.
Under the terms of the Conveyance, Adjusted Gross Proceeds will be increased in
future periods when the Working Interest Owner is compensated either through the
sale of gas or through cash settlements, the amount and timing of which is
uncertain.
5. GAS CONTRACT SETTLEMENT
From 1986 through 1992, the Working Interest Owner entered into several gas
contract settlements with a gas purchaser related to the Royalty Properties
which involved payments of cash by the gas purchaser to the Working Interest
Owner. The Working Interest Owner included in the calculation of Gross Proceeds
the payments received in connection with these settlements, net of amounts
retained in a suspense account representing settlement proceeds that were
subject to possible royalty obligations to the Minerals Management Service (the
MMS). In December 1994, the Working Interest Owner entered into an agreement
with the MMS relating to these gas contract settlements, resulting in a payment
by the Working Interest Owner. After the settlement, approximately $4 million of
the funds initially retained for possible royalty obligations remained. The
Working Interest Owner informed the Trustee that it anticipated expenditures for
the development operations on the Royalty Properties in excess of $4 million
and, accordingly, proposed to retain the funds remaining in the suspense account
for use as payments of these anticipated expenditures, as sufficient funds may
not be otherwise available. The Trustee and the Working Interest Owner evaluated
the legal, tax and other issues relating to retaining such amounts for use in
the exploratory and development operations on the Royalty Properties and
concluded that the funds should be paid to the Trust. Such funds, including
interest, were included in the April 1995 Net Proceeds as a special payment
resulting in a distribution of $0.28794 per Unit to Unit holders of record on
May 3, 1995, which was paid on July 10, 1995.
6. ESTABLISHMENT OF AN EXPENSE RESERVE
Because of the decline in Royalty income since late 1993, at certain times
the Trust has been unable to pay its ongoing administrative expenses. To permit
the Trust to pay its routine administrative expenses during the time the Trust
incurs a Class A cost deficit, the Trustee, in accordance with the Trust
Indenture, established an expense reserve of approximately $2.4 million to cover
approximately 3 years of Trust expenses. This reserve was funded with $1.9
million from a January 1994 settlement payment, $0.3 million from Royalty income
and $0.2 million from the April 1995 settlement payment (Note 5). There will be
tax consequences for the Unit holders as described in Note 7 below.
--5--
<PAGE> 6
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
The funding for this reserve is deposited with Texas Commerce Bank and
invested in Texas Commerce Bank collateralized certificates of deposit. The
average interest rate earned on these funds for the second quarter of 1995 was
3.78 percent.
7. FEDERAL INCOME TAX MATTERS
Unit holders will be required to report taxable income for the Royalty
income received by the Trust and deposited to the expense reserve even if no
distributions were received by the Unit holders. The expense reserve established
for Trust administrative expenses described in Note 6 above will give rise to
future tax deductions as additional administrative expenses are incurred and
paid with funds deposited in the reserve.
8. RESERVE FOR FUTURE ESTIMATED ABANDONMENT COSTS
The operators of the Trust properties have provided estimates of future
costs to abandon the Trust properties upon their depletion. The December 1994
estimate, net of abandonment costs incurred, totals $13.6 million net to the
Trust, of which $13.1 million net to the Trust has been withheld from
distributions to Unit holders as of June 30, 1995. The actual costs to abandon
the Trust properties may vary from these estimates. Any excess will reduce
future distributions and, to the extent that actual costs are less than amounts
withheld, amounts will be added to future distributable cash.
---------------------
THE INFORMATION FURNISHED HEREIN SHOULD BE READ IN CONJUNCTION WITH THE
FINANCIAL STATEMENTS OF FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST FOR THE YEAR
ENDED DECEMBER 31, 1994, WHICH ARE CONTAINED IN ITS ANNUAL REPORT ON FORM 10-K
FOR 1994.
--6--
<PAGE> 7
FREEPORT-MCMORAN OIL AND GAS ROYALTY TRUST
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Texas Commerce Bank National Association (Trustee)
and the Unit Holders of Freeport-McMoRan Oil and Gas Royalty Trust:
We have reviewed the accompanying statement of assets, liabilities and
trust corpus of Freeport-McMoRan Oil and Gas Royalty Trust as of June 30, 1995,
the related statements of royalty proceeds and distributable cash for the three
and six month periods ended June 30, 1995 and 1994 and the related statements of
changes in trust corpus for the six month periods then ended. These financial
statements are the responsibility of the Working Interest Owner.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical review
procedures to financial data and making inquiries of persons responsible for
financial and accounting matters. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
These financial statements were prepared on the cash basis of accounting,
which is a comprehensive basis of accounting other than generally accepted
accounting principles.
Based on our reviews, we are not aware of any material modifications that
should be made to the financial statements referred to above for them to be in
conformity with the cash basis of accounting.
We have previously audited, in accordance with generally accepted auditing
standards, the statement of assets, liabilities and trust corpus of
Freeport-McMoRan Oil and Gas Royalty Trust as of December 31, 1994 and, in our
report dated March 3, 1995, we expressed an unqualified opinion on that
statement.
ARTHUR ANDERSEN LLP
New Orleans, Louisiana,
August 2, 1995
--7--
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
The information contained herein regarding operations and exploration and
development activities on the properties burdened by the Royalty has been
furnished by the Working Interest Owner.
RESULTS OF OPERATIONS
Cash distributions to Unit holders in the second quarter and first six
months of 1995 totaled $4.5 million, or $0.30365 per Unit. No distribution was
made for the same periods of 1994. The second-quarter 1995 cash distribution
resulted from higher Gross Proceeds resulting from the settlement payment
discussed below, reduced capital expenditures and lower abandonment accruals and
the completion in April 1995 of the funding of the $2.4 million Trust
administrative expense reserve. The second-quarter 1995 cash distribution was
comprised of the following per Unit monthly distribution amounts:
<TABLE>
<CAPTION>
1995
--------
<S> <C>
April..................................................... $0.28794
May....................................................... 0.00693
June...................................................... 0.00878
--------
$0.30365
========
</TABLE>
Gas revenues included in second-quarter and six-months 1995 Gross Proceeds
totaled $1 million and $2 million, respectively, compared with $2 million and
$4.2 million in the 1994 periods, respectively. Gas volumes decreased 39 percent
to 0.5 billion cubic feet (bcf) for the second quarter of 1995 from 0.8 bcf in
the 1994 period and decreased 39 percent to 1 bcf for the first six months of
1995 from 1.7 bcf in the 1994 period primarily because of normal production
declines. Gas price realizations averaged $1.97 per thousand cubic feet (mcf)
and $2.02 per mcf in the second quarter and six month periods of 1995,
respectively, compared with $2.60 and $2.56 per mcf in the 1994 periods,
respectively. The decline in average gas price realizations is due to a lower
spot market price and an increase in volume sold in the spot market during 1995.
Oil revenues included in Gross Proceeds totaled $0.4 million and $0.8
million for the second quarter and first six months of 1995, respectively,
compared with $0.5 million and $1 million in the 1994 periods, respectively. Oil
volumes declined 55 percent to 19,500 barrels in the 1995 quarter from 43,200
barrels in the 1994 quarter and decreased 42 percent to 46,700 barrels in the
1995 year-to-date period from 80,500 barrels in the 1994 period. These decreases
were partially offset by increases in the average oil price realizations to
$18.08 and $16.87 per barrel for the 1995 quarter and year-to-date periods,
respectively, from $13.23 and $13.95 per barrel in the comparative 1994 periods.
--8--
<PAGE> 9
Capital costs during the second quarter and first six months of 1995, net
to the Trust, were virtually nil ($0.00091 per Unit) and a negative $0.2 million
($0.01245 per Unit), respectively, caused by the reversal of previously accrued
capital expenditures. Capital costs reduced second-quarter and six-months 1994
Royalty proceeds by $0.9 million ($0.05953 per Unit) and $2.8 million ($0.18445
per Unit), respectively.
Accruals for future estimated abandonment costs reduced Royalty proceeds by
$0.1 million ($0.00686 per Unit) and $0.3 million ($0.01753 per Unit) for the
second quarter and first six months of 1995, respectively, compared with $0.3
million ($0.01796 per Unit) and $1 million ($0.06717 per Unit) in the
comparative 1994 periods, respectively. Based on current estimates which may be
adjusted in future periods, approximately $0.5 million remains to be withheld
from future distributions to Unit holders (Note 8).
The table below provides a summary of calculations of amounts payable
pursuant to the Royalty and amounts distributable by the Trust for the periods
indicated:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------------------- --------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Gross proceeds(1)...................... $ 6,116,240 $ 2,617,161 $ 7,638,068 $ 8,541,696
Total costs(2)......................... (788,134) (1,950,214) (1,449,333) (5,460,372)
Excess Class A cost recovery(3)........ -- (162,635) (535,453) (248,957)
----------- ----------- ----------- -----------
Net proceeds........................... 5,328,106 504,312 5,653,282 2,832,367
Percent attributable to Royalty........ 90.0% 90.0% 90.0% 90.0%
----------- ----------- ----------- -----------
Amounts payable attributable to
Royalty.............................. 4,795,295 453,881 5,087,954 2,549,131
Percent attributable to the Trust...... 99.9% 99.9% 99.9% 99.9%
----------- ----------- ----------- -----------
Royalty proceeds....................... 4,790,500 453,427 5,082,866 2,546,581
Trust administrative expenses.......... (125,291) (154,878) (186,408) (263,035)
Trust administrative expense
recovery(4).......................... -- -- -- (153,257)
----------- ----------- ----------- -----------
4,665,209 298,549 4,896,458 2,130,289
Interest earned........................ 55,969 11,958 73,382 18,394
Reserve for future Trust expenses(5)... (173,755) (310,507) (422,417) (2,148,683)
----------- ----------- ----------- -----------
Distributable cash..................... $ 4,547,423 $ -- $ 4,547,423 $ --
=========== =========== =========== ===========
</TABLE>
------------
(1) Gross proceeds for the three and six month periods ended June 30, 1995 and
1994, were calculated based on amounts received by the Working Interest
Owner during the three and six month periods ended May 31, 1995 and May 31,
1994, respectively.
(2) Total costs for the three and six month periods ended June 30, 1995 and
1994, represent amounts accrued by the Working Interest Owner during the
three and six month periods ended May 31, 1995 and May 31, 1994,
respectively.
(Notes continued on following page)
--9--
<PAGE> 10
(3) Represents Class A costs incurred in a prior period and recovered in the
current period as described above.
(4) Represents Trust administrative expenses incurred in a prior period and
recovered during the current period as described above.
(5) Represents amounts deposited to the Trust administrative expense reserve
during such period.
Unit holders should note that any change in the timing of receipt of
proceeds from production by the Working Interest Owner can result in (1) wide
swings in monthly distribution amounts and (2) a delay from one quarter to the
next in the cash distribution by the Trust to the Unit holders of amounts
attributable to delayed receipts. Accordingly, the monthly distribution amount
for any particular month is not necessarily indicative of future monthly
distribution amounts, which will depend on revenues received and costs incurred.
CAPITAL RESOURCES AND LIQUIDITY
All revenues received by the Trust, net of Trust administrative expenses
and liabilities, are distributed to the Unit holders in accordance with
provisions of the Trust Indenture. Primarily as a result of costs associated
with exploratory drilling activity at West Cameron Block 498, discussed below,
the amount and timing of future distributions to Unit holders is presently
indeterminable.
In June 1994, an exploratory well at West Cameron Block 498, Well No. 2,
was drilled and temporarily abandoned after discovering approximately 760 feet
of net hydrocarbon pay. In July 1994, a second exploratory well, No. 3, was
drilled and temporarily abandoned after penetrating a separate fault block and
encountering approximately 150 feet of net hydrocarbon pay from multiple sand
reservoirs, some of which were encountered by the No. 2 Well. The working
interest owners of West Cameron Block 498 participated in a 3D seismic survey of
the block which has been completed. After review of the survey data and
available geologic information, the operator proposed the drilling of the West
Cameron Block 498 No. 4 well with an estimated cost of $3.7 million ($0.8
million net to the Trust), which commenced on July 28, 1995. The Working
Interest Owner elected to participate in the well and for at least several
months total Class A costs are expected to exceed Gross Proceeds, which would
result in no distributions to the Unit holders. Additional wells may be proposed
depending on the results of the No. 4 well. All future exploration and
development costs incurred with respect to this property would also reduce net
proceeds, which would reduce or eliminate distributions to Unit holders for a
presently indeterminate period. At December 31, 1994, costs associated with the
exploration activities at West Cameron Block 498 resulted in a cumulative cost
carry-forward of $476,435, net to the Trust. During the first quarter of 1995,
Royalty proceeds eliminated the cumulative cost carry-forward.
Total capital expenditures remaining for 1995 are budgeted at $3.4 million
net to the Trust, primarily $3.3 million of West Cameron Block 498 activities.
However, the extent of additional future capital expenditures will depend upon
the drilling results at West Cameron Block 498. Actual expenditures could vary
significantly from the estimate. These cost estimates are provided by the
outside operators and may vary from actual costs depending on the success of
drilling, difficulties
--10--
<PAGE> 11
encountered and numerous other factors outside the control of the operator. The
operators of the Trust properties are analyzing other potential capital
expenditures for exploration and development activities. These expenditures
would serve to reduce, and could eliminate, distributions to Unit holders for
certain periods.
From 1986 through 1992, the Working Interest Owner entered into several gas
contract settlements with a gas purchaser related to the Royalty Properties
which involved payments of cash by the gas purchaser to the Working Interest
Owner. The Working Interest Owner included in the calculation of Gross Proceeds
the payments received in connection with these settlements, net of amounts
retained in a suspense account representing settlement proceeds that were
subject to possible royalty obligations to the MMS. In December 1994, the
Working Interest Owner entered into an agreement with the MMS relating to these
gas contract settlements, resulting in a payment by the Working Interest Owner.
After the settlement, approximately $4 million of the funds initially retained
for possible royalty obligations remained. The Working Interest Owner informed
the Trustee that it anticipated expenditures for the development operations on
the Royalty Properties in excess of $4 million and, accordingly, proposed to
retain the funds remaining in the suspense account for use as payments of these
anticipated expenditures, as sufficient funds may not be otherwise available.
The Trustee and the Working Interest Owner evaluated the legal, tax and other
issues relating to retaining such amounts for use in the exploratory and
development operations on the Royalty Properties and concluded that the funds
should be paid to the Trust. Such funds, including interest, were included in
the April 1995 Net Proceeds as a special payment resulting in a distribution of
$0.28794 per Unit to Unit holders of record on May 3, 1995 and paid on July 10,
1995. Funds for future capital expenditures on the Royalty Properties provided
by the Working Interest Owner will subsequently reduce distributions to Unit
holders in accordance with the Trust agreements.
Because of the decline in Royalty income since late 1993, at certain times
the Trust has been unable to pay its ongoing administrative expenses. To permit
the Trust to pay its administrative expenses during the time the Trust incurs a
Class A cost deficit, the Trustee, in accordance with the Trust Indenture,
established in January 1994 a $2.4 million Trust administrative expense reserve
to pay such expenses (see Note 6 -- Establishment of an Expense Reserve), which
has now been fully funded.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Not applicable.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed by the registrant during the second
quarter of 1995.
--11--
<PAGE> 12
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
<TABLE>
<S> <C>
FREEPORT-McMoRan OIL AND GAS
ROYALTY TRUST
By: Texas Commerce Bank National Association,
Trustee
By: /s/ MICHAEL J. ULRICH
-----------------------------
MICHAEL J. ULRICH
VICE PRESIDENT AND TRUST OFFICER
</TABLE>
Date: August 11, 1995
--12--
<PAGE> 13
INDEX TO EXHIBITS
Exhibit 27 - Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-1-1995
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1
<CASH> 6,947,423
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,947,423
<PP&E> 189,875,741
<DEPRECIATION> 189,692,528
<TOTAL-ASSETS> 7,130,636
<CURRENT-LIABILITIES> 6,947,423
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 183,213
<TOTAL-LIABILITY-AND-EQUITY> 7,130,636
<SALES> 4,790,500
<TOTAL-REVENUES> 4,846,469
<CGS> 0
<TOTAL-COSTS> 125,291
<OTHER-EXPENSES> 173,755
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
