Gulf Coast Ultra Deep Royalty Trust (GULTU)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Gulf Coast Ultra Deep Royalty Trust (GULTU) trades at $0.04 with AI Score 51/100 (Grade B). Gulf Coast Ultra Deep Royalty Trust is a statutory trust holding a 5% gross overriding royalty interest in specific oil and gas prospects. Market cap: $8.52M, Sector: Energy.
Price live · AI analysis from Mar 18, 2026Analyst Coverage for GULTU: GULTU does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates GULTU against Energy peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
GULTU: 3/7 perspectives are bullish. Dominant signal: Ken Griffin bearish.
How is this calculated? →Gulf Coast Ultra Deep Royalty Trust (GULTU) Energy Operations & Outlook
Gulf Coast Ultra Deep Royalty Trust, a Houston-based statutory trust, focuses on a 5% gross overriding royalty interest in oil and gas production from McMoRan Oil & Gas LLC's Gulf of Mexico and South Louisiana prospects, operating within the energy sector without offering dividends and demonstrating high profit margins.
What Is the Investment Thesis for GULTU?
Gulf Coast Ultra Deep Royalty Trust offers a unique, albeit speculative, investment proposition centered on its 5% gross overriding royalty interest in McMoRan Oil & Gas LLC's Gulf Coast prospects. The trust's high profit margin of 2806.9% reflects the potential profitability of its royalty structure given sufficient production. However, the absence of dividends and a negative beta of -0.15 suggest a complex risk profile. The trust's value is intrinsically linked to McMoRan's ability to successfully extract oil and gas from the designated areas. Key catalysts include successful drilling and production milestones by McMoRan, while risks encompass geological uncertainties, fluctuating commodity prices, and McMoRan's operational performance. Investors should carefully weigh the potential rewards against the inherent risks associated with royalty trusts and the volatile nature of the energy sector.
Based on FMP financials and quantitative analysis
GULTU Key Highlights
- Market capitalization of $8.52M indicates a micro-cap company with limited liquidity.
- P/E ratio of 609.90 suggests the stock may be overvalued relative to its earnings.
- Profit margin of 2806.9% reflects high profitability on generated revenue, but may be unsustainable.
- Gross margin of 100.0% indicates no direct production costs, as the company only receives royalty payments.
- Beta of -0.15 suggests the stock price moves inversely to the market, offering potential diversification benefits.
Who Are GULTU's Competitors?
GULTU is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CHKR Chesapeake Granite Wash Trust | $0.35 | +2.09% | $16.23M | 45 |
| ECTM ECA Marcellus Trust I | $0.61 | +4.24% | $10.74M | 46 |
| HGTXU Hugoton Royalty Trust | $0.16 | +2.56% | $6.40M | 48 |
| ROYTL Pacific Coast Oil Trust | $0.15 | +0.00% | $5.79M | 61 |
| EXE Expand Energy Corporation | $89.09 | -1.80% | $21.31B | 72 |
| ATUUF Tenaz Energy Corp. | $31.44 | -2.60% | $1.03B | 68 |
| VIST Vista Energy, S.A.B. de C.V. | $61.57 | +2.00% | $6.42B | 68 |
| CNX CNX Resources Corporation | $33.22 | -1.83% | $4.70B | 67 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are GULTU's Key Strengths?
- High profit margin (2806.9%).
- 100% gross margin.
- Contractually protected royalty interest.
- Specific geographic focus in the Gulf Coast region.
What Are GULTU's Weaknesses?
- Dependence on McMoRan Oil & Gas LLC's operational success.
- Lack of diversification in royalty assets.
- Vulnerability to commodity price fluctuations.
- No dividend payments.
What Could Drive GULTU Stock Higher?
- McMoRan Oil & Gas LLC announces positive drilling results from its Gulf of Mexico prospects.
- Sustained high oil and gas prices boost royalty income.
- McMoRan Oil & Gas LLC successfully implements new extraction technologies.
- McMoRan announces new discoveries in the Gulf Coast region.
What Are the Key Risks for GULTU?
- Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
- Decline in oil and gas prices reduces royalty income.
- Geological risks and uncertainties impact production volumes.
- Dependence on McMoRan Oil & Gas LLC's operational performance.
- Limited liquidity in the OTC market makes it difficult to trade shares.
- Regulatory changes negatively impact oil and gas production in the Gulf Coast.
What Are the Growth Opportunities for GULTU?
- Increased Production from Existing Prospects: A primary growth opportunity lies in McMoRan Oil & Gas LLC successfully increasing production from the existing Gulf of Mexico and South Louisiana prospects. Any increase in production directly translates to higher royalty income for the trust. The timeline for this growth is dependent on McMoRan's drilling and completion schedules, as well as the geological characteristics of the reserves. The market size is determined by the recoverable reserves and prevailing oil and gas prices.
- New Discoveries and Prospect Development: McMoRan's discovery of new reserves within the designated areas represents another potential growth driver. Successful exploration and subsequent development of new prospects would expand the royalty base for the trust. The timeline for this is highly uncertain, as exploration is inherently risky. The market size depends on the scale of any new discoveries and the cost of extraction.
- Favorable Commodity Price Environment: Higher oil and gas prices directly increase the value of the royalty interest. A sustained period of elevated prices would significantly boost the trust's revenue and profitability. The timeline for this is unpredictable, as commodity prices are influenced by global supply and demand factors, geopolitical events, and economic conditions. The market size is determined by the volume of production and the price per barrel or cubic foot.
- Technological Advancements in Extraction: Advances in drilling and completion technologies could improve the efficiency and economics of production from the existing prospects. This could lead to increased production and lower operating costs for McMoRan, ultimately benefiting the trust. The timeline for this is dependent on the pace of technological innovation and McMoRan's adoption of new techniques. The market size is determined by the potential cost savings and production gains.
- Strategic Acquisitions by McMoRan: If McMoRan Oil & Gas LLC were to acquire additional properties or expand its operations in the Gulf Coast region, it could potentially lead to increased production and higher royalty income for the trust, assuming the new properties fall under the royalty agreement. The timeline for this is uncertain, as it depends on McMoRan's strategic decisions and acquisition opportunities. The market size is determined by the scale and profitability of any acquired properties.
What Opportunities Does GULTU Have?
- Increased production from existing prospects.
- New discoveries and prospect development by McMoRan.
- Favorable commodity price environment.
- Technological advancements in extraction.
What Threats Does GULTU Face?
- Geological risks and uncertainties.
- Decline in commodity prices.
- Operational challenges faced by McMoRan.
- Regulatory changes impacting oil and gas production.
What Are GULTU's Competitive Advantages?
- Contractual Royalty Agreement: The 5% gross overriding royalty interest is contractually protected.
- Specific Geographic Focus: The royalty interest is tied to specific prospects in the Gulf Coast region.
- Limited Operational Overhead: As a royalty trust, GULTU has minimal operating expenses.
What Does GULTU Do?
Gulf Coast Ultra Deep Royalty Trust, established as a statutory trust, centers its operations on a 5% gross overriding royalty interest. This interest is tied to the future production of oil and gas from specific exploration prospects managed by McMoRan Oil & Gas LLC. These prospects are situated in the shallow waters of the Gulf of Mexico and onshore in South Louisiana, targeting the inboard lower tertiary/cretaceous formations. The trust structure allows investors to participate in the revenue generated from these specific oil and gas properties without directly engaging in exploration or production activities. The company's sole function is to manage and distribute royalty income derived from McMoRan's production. Headquartered in Houston, Texas, Gulf Coast Ultra Deep Royalty Trust provides a focused investment vehicle for those interested in the energy sector, specifically in the potential yields from these designated Gulf Coast region prospects. The trust's financial performance is directly linked to the success of McMoRan's exploration and production efforts within these areas. The trust does not engage in any operational activities related to oil and gas extraction; its role is purely that of a royalty recipient.
What Products and Services Does GULTU Offer?
- Holds a 5% gross overriding royalty interest.
- Receives royalty income from oil and gas production.
- Focuses on prospects in the Gulf of Mexico and South Louisiana.
- Relies on McMoRan Oil & Gas LLC for production activities.
- Manages and distributes royalty income to its shareholders.
- Operates as a statutory trust with no direct involvement in exploration or production.
How Does GULTU Make Money?
- Generates revenue from a 5% gross overriding royalty interest.
- Revenue is directly tied to the production volume and price of oil and gas.
- Distributes royalty income to shareholders after deducting minimal administrative expenses.
What Industry Does GULTU Operate In?
Gulf Coast Ultra Deep Royalty Trust operates within the oil and gas exploration and production industry, a sector characterized by cyclicality and sensitivity to commodity prices. The industry is currently navigating a transition towards cleaner energy sources, although demand for oil and gas remains significant. The competitive landscape includes major integrated oil companies, independent producers, and royalty trusts. GULTU's position is unique as a royalty trust focused on specific prospects, making it highly dependent on the operational success of McMoRan Oil & Gas LLC. The overall market is influenced by global economic conditions, geopolitical events, and technological advancements in extraction techniques.
Who Are GULTU's Key Customers?
- Institutional investors seeking exposure to oil and gas royalties.
- Individual investors interested in income-generating assets.
- Shareholders who receive distributions from the royalty income.
F-Score 3/9Financial Health
Gulf Coast Ultra Deep Royalty Trust's Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 2.79 places it in the grey zone, a middle ground that warrants monitoring.
ROE 45%Key Financial Metrics
Return on equity for Gulf Coast Ultra Deep Royalty Trust stands at 45.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -20.5%, showing how much profit it generates from its asset base. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -2.6%, the inverse of the P/E and a quick read on earnings relative to price.
GULTU Valuation & Market Position
With a $8.52M market cap, Gulf Coast Ultra Deep Royalty Trust sits in the micro-cap segment of the market. Relative to its peer group, GULTU's quantitative score of 51/100 is roughly in line with the peer average of 54/100.
GULTU Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the trust's long-term value, indicating that executives believe in future growth.
- Social sentiment has shifted positively as discussions around energy prices improve, boosting optimism for royalty trusts like GULTU.
- Community sentiment reflects a growing belief in the stability of energy investments, especially in the face of rising demand.
- Market perception has been bolstered by favorable regulatory developments in the energy sector, enhancing the outlook for royalty trusts.
Bear Case
- Concerns over fluctuating energy prices could dampen revenue expectations, leading to cautious sentiment among investors.
- Recent bearish community discussions highlight fears of potential regulatory changes that may impact royalty income.
- Insider selling has raised eyebrows, suggesting that some executives may be hedging against future uncertainties.
- The overall market sentiment remains mixed, with many investors wary of overexposure to energy sector volatility.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
GULTU Latest News
No recent news available for GULTU.
GULTU Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for GULTU.
Price Targets
Wall Street price target analysis for GULTU.
GULTU MoonshotScore
What does this score mean?
The MoonshotScore rates GULTU's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
GULTU OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Gulf Coast Ultra Deep Royalty Trust may not meet the minimum financial standards or disclosure requirements of higher tiers like OTCQX or OTCQB. Companies in this tier may be newly formed, distressed, or have chosen not to comply with stricter reporting standards. Investing in companies on the OTC Other tier carries significant risks due to the limited information available and the potential for fraud or manipulation. These companies are not required to be SEC reporting.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited Information: Lack of comprehensive financial disclosures increases investment risk.
- Low Liquidity: Difficulty in buying or selling shares due to low trading volume.
- Price Volatility: Susceptibility to significant price swings due to limited trading activity.
- Potential for Fraud: Higher risk of fraudulent activities due to less stringent regulatory oversight.
- Going Concern Risk: Uncertainty about the company's ability to continue operating.
- Verify the company's registration and legal standing.
- Review any available financial statements and disclosures.
- Assess the operational performance of McMoRan Oil & Gas LLC.
- Evaluate the geological risks associated with the oil and gas prospects.
- Monitor commodity price trends and their impact on royalty income.
- Understand the terms of the royalty agreement.
- Consult with a financial advisor before investing.
- Established Royalty Agreement: The existence of a formal royalty agreement with McMoRan Oil & Gas LLC provides some level of legitimacy.
- Operational History: The company has been operating as a royalty trust for a period of time.
- Publicly Traded Status: Being publicly traded, even on the OTC market, requires some level of regulatory compliance.
- Industry: Operating within the energy sector.
Gulf Coast Ultra Deep Royalty Trust Energy Stock: Key Questions Answered
What does Gulf Coast Ultra Deep Royalty Trust do?
Gulf Coast Ultra Deep Royalty Trust operates as a statutory trust, holding a 5% gross overriding royalty interest in the future production from specific oil and gas exploration prospects operated by McMoRan Oil & Gas LLC. These prospects are located in the shallow waters of the Gulf of Mexico and onshore in South Louisiana. The trust's primary function is to receive and distribute royalty income derived from McMoRan's production activities within these designated areas. It provides investors with a focused investment vehicle tied to the potential yields from these Gulf Coast region prospects, without direct involvement in exploration or production.
What do analysts say about GULTU stock?
As of March 18, 2026, there is no readily available analyst coverage specifically for Gulf Coast Ultra Deep Royalty Trust (GULTU) due to its micro-cap status and OTC listing. Investment decisions should be based on individual risk tolerance and thorough due diligence. Key valuation metrics, such as the P/E ratio of 609.90, should be interpreted cautiously. The company's growth prospects are heavily reliant on the operational success of McMoRan Oil & Gas LLC and prevailing commodity prices. Investors should carefully consider these factors before investing.
What are the main risks for GULTU?
The main risks for Gulf Coast Ultra Deep Royalty Trust include its dependence on McMoRan Oil & Gas LLC's operational performance and the inherent geological risks associated with oil and gas exploration. Fluctuations in commodity prices can significantly impact royalty income. The trust's limited liquidity due to its OTC listing poses trading challenges. Regulatory changes affecting oil and gas production in the Gulf Coast region also represent a potential risk. Investors should carefully assess these factors before investing.
What are the key factors to evaluate for GULTU?
Gulf Coast Ultra Deep Royalty Trust (GULTU) holds an AI score of 51/100 (moderate). Not financial advice.
How frequently does GULTU data refresh on this page?
GULTU prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven GULTU's recent stock price performance?
Gulf Coast Ultra Deep Royalty Trust (GULTU) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: High profit margin (2806.9%). See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider GULTU overvalued or undervalued right now?
Valuing Gulf Coast Ultra Deep Royalty Trust (GULTU) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying GULTU?
Before investing in Gulf Coast Ultra Deep Royalty Trust (GULTU), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- OTC market data may be less reliable than exchange-listed data.
- AI analysis pending for GULTU.