Gulf Coast Ultra Deep Royalty Trust Investor Center

Contact

Mike Ulrich
The Bank of New York Mellon Trust Company, N.A.

Corporate Trust

919 Congress Ave, Suite 500

Austin, TX 78701

Phone: 512-236-6599

How do you calculate taxable gain/loss on McMoRan Exploration Co. (MMR) shares?

Q:

How do you calculate taxable gain/loss on McMoRan Exploration Co. (MMR) shares?

A:

The fair market value of MMR common stock at the consummation of the merger with Freeport-McMoRan Copper & Gold (FCX) is equal to $14.75 share for the cash portion plus the volume weighted average price (VWAP) of the royalty trust on June 4, 2013, which is $2.0477 per royalty unit.

Example: 100 shares of MMR

Cash received: (100 x $14.75) = $1,475

Royalty units received: (100 x 1.15 units) = 115 units of GULTU

Royalty Trust value: (115 x $2.0477) = $235.4855

TOTAL MMR value received: $1,710.4855

Compare this value to your basis in MMR common stock to determine your gain/loss