Whiting USA Trust I Announces Trust Quarterly Distribution
February 06 2015 - 4:30PM
Business Wire
Whiting USA Trust I (NYSE:WHX) announced the first Trust
distribution in 2015, which relates to net profits generated during
the fourth quarterly payment period of 2014.
Unitholders of record on February 19, 2015 will receive a
distribution of $0.283085 per unit, which is payable on or before
March 2, 2015.
Volumes, average sales prices and net profits for the quarterly
payment period were:
Sales volumes: Oil (Bbl)(1) 169,823 Natural gas (Mcf)
614,063 Total (BOE) 272,167 Average sales prices: Oil
(per Bbl)(1) $ 64.62 Natural gas (per Mcf) $ 3.58
Gross proceeds:
Oil sales(1) $ 10,974,371 Natural gas sales 2,199,793
Total gross proceeds $ 13,174,164 Costs: Lease operating
expenses $ 7,582,125 Production taxes 865,643 Total
costs $ 8,447,768
Net profits
$ 4,726,396 Percentage allocable to Trust’s Net Profits Interest
90 % Total cash available for the Trust $ 4,253,756
Provision for estimated Trust expenses (300,000 ) Montana state
income taxes withheld (29,098 ) Net cash proceeds available
for distribution $ 3,924,658
Trust units outstanding
13,863,889 Cash distribution per Trust unit $
0.283085
(1) Oil includes natural gas liquids.
The Trust’s net profits interest represents the right to receive
90% of the net proceeds from Whiting Petroleum Corporation’s
interests in certain existing oil and natural gas producing
properties located primarily in the Rocky Mountains, Mid-Continent,
Permian Basin and Gulf Coast regions of the United States. As
described in the Trust’s public filings, since the assets of the
Trust are depleting assets, a portion of each cash distribution
paid on the Trust units should be considered by investors as a
return of capital, with the remainder being considered as a return
on investment or yield.
As of December 31, 2014, on a cumulative accrual basis, 8.11
MMBOE (99%) of the Trust’s total 8.20 MMBOE have been produced and
sold and 0.02 MMBOE have been divested. The net profits interest
will terminate when 9.11 MMBOE (8.20 MMBOE to the 90% net profits
interest) have been produced and sold from the underlying
properties, and the Trust will soon thereafter wind up its affairs
and terminate, after which it will pay no further distributions.
Consequently the market price of the Trust units should decline to
zero around or shortly after the record date for the final expected
distribution. Based on the Trust’s reserve report for the
underlying properties as of December 31, 2014, 9.11 MMBOE were
projected to be produced by January 31, 2015 and, accordingly, the
net profits interest termination date is currently estimated to
have occurred. However, due to January production data not being
available yet, we are not able to determine the final net profits
interest termination date as of the date of this press release.
Once it has been determined that 9.11 MMBOE has been produced
and sold from the underlying properties, the Trust will shortly
thereafter issue a press release announcing the actual net profits
interest termination date, the final record and distribution dates
for unitholders and the wind up process for the Trust. To the
extent that the Trust units are trading at a price in excess of the
aggregate distributions that may be reasonably expected to be made
prior to the termination of the Trust, the market price decline in
Trust units is likely to include one or more abrupt decreases.
In order for the Trust units to remain listed on the New York
Stock Exchange (“NYSE”), the average closing price over a
consecutive 30-trading day period cannot be less than $1.00, and
the Trust unit selling price cannot be “abnormally low”, as
determined by the NYSE. As of the date of this release, the units
have been trading below $1.00 for 13 consecutive trading days. If
the Trust units are delisted from the NYSE, the Trust expects that
they would continue to trade off-exchange (over-the-counter).
However, there is no assurance that an active market in the Trust
units will develop off-exchange.
This press release contains forward-looking statements,
including all statements made in this press release other than
statements of historical fact. No assurances can be given that such
statements will prove to be correct. The announced distributable
amount is based, in part, on the amount of cash received or
expected to be received by the Trust from Whiting Petroleum
Corporation pursuant to the net profits interest with respect to
the relevant quarterly period. Any differences in actual cash
receipts by the Trust could affect this distributable amount.
Additionally, the estimated time when the market price of the Trust
units should decline to zero is based on the economic rights of the
Trust units. The trading price of the Trust units is affected by
factors outside of the control of the Trust or Whiting, including
actions of market participants, among others. Other important
factors that could cause actual results to differ materially
include expenses of the Trust, an increase in the cash reserve for
the payment of expenses after the final distribution to
unitholders, fluctuations in oil and natural gas prices,
uncertainty of estimates of oil and natural gas reserves and
production, risks inherent in the operation and production of oil
and gas properties, and future production costs. Statements made in
this press release are qualified by the cautionary statements made
in this press release. The Trustee does not intend, and assumes no
obligation, to update any of the statements included in this press
release.
Whiting USA Trust IThe Bank of New York Mellon Trust
Company, N.A., as TrusteeMike Ulrich,
512-236-6599http://whx.investorhq.businesswire.com/