SandRidge Mississippian Trust II Announces Quarterly Distribution
January 26 2017 - 4:15PM
Business Wire
SANDRIDGE MISSISSIPPIAN TRUST II (NYSE: SDR) today announced a
quarterly distribution for the three-month period ended December
31, 2016 (which primarily relates to production attributable to the
Trust’s interests from September 1, 2016 through November 30, 2016)
of $3.1 million, or $0.062 per unit. The Trust makes distributions
on a quarterly basis on or about the 60th day following the
completion of each quarter. The distribution is expected to occur
on or before February 24, 2017 to holders of record as of the close
of business on February 10, 2017.
During the three-month production period ended November 30,
2016, total sales volumes were slightly lower than the previous
period; however, oil, natural gas and natural gas liquids (“NGL”)
prices increased. As no additional development wells will be
drilled, the Trust’s production is expected to decline each quarter
during the remainder of its life.
The Trust owns royalty interests in oil and natural gas
properties in the Mississippian formation in Alfalfa, Grant, Kay,
Noble and Woods counties in northern Oklahoma and Barber, Comanche,
Harper and Sumner counties in southern Kansas and is entitled to
receive proceeds from the sale of production attributable to the
royalty interests. As described in the Trust’s filings with the
Securities and Exchange Commission (the “SEC”), the amount of the
quarterly distributions is expected to fluctuate from quarter to
quarter, depending on the proceeds received by the Trust as a
result of actual production volumes, oil, natural gas and NGL
prices and the amount and timing of the Trust’s administrative
expenses, among other factors. All Trust unitholders share
distributions on a pro rata basis.
Volumes, price and distributable income available to unitholders
for the period were (dollars in thousands, except per unit):
Sales Volumes Oil (MBbl) 31 NGL (MBbl)
63 Natural Gas (MMcf) 759 Combined (MBoe) 220
Average Price
Oil (per Bbl) $ 45.57 NGL (per Bbl) $ 15.24 Natural Gas (per Mcf) $
2.34 Natural Gas (per Mcf) including impact of post-production
expenses $ 1.74
Revenues $ 4,132
Expenses
1,032
Distributable income available to unitholders $ 3,100
Distributable income per unit (49,725,000 units issued and
outstanding) $ 0.062
Pursuant to IRC Section 1446, withholding tax on income
effectively connected to a United States trade or business
allocated to foreign partners should be made at the highest
marginal rate. Under Section 1441, withholding tax on fixed,
determinable, annual, periodic income from United States sources
allocated to foreign partners should be made at 30% of gross income
unless the rate is reduced by treaty. This is intended to be a
qualified notice by SandRidge Mississippian Trust II to nominees
and brokers as provided for under Treasury Regulation Section
1.1446-4(b), and while specific relief is not specified for Section
1441 income, this disclosure is intended to suffice. Nominees and
brokers should withhold at the highest marginal rate, currently
39.6% for individuals, on the distribution made to foreign
partners.
This press release contains statements that are “forward-looking
statements” within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
contained in this press release, other than statements of
historical facts, are “forward-looking statements” for purposes of
these provisions. These forward-looking statements include the
amount and date of any anticipated distribution to unit holders.
The anticipated distribution is based, in part, on the amount of
cash received or expected to be received by the Trust from
SandRidge Energy, Inc. (“SandRidge”) with respect to the relevant
period. Any differences in actual cash receipts by the Trust could
affect this distributable amount. Other important factors that
could cause actual results to differ materially include expenses of
the Trust and reserves for anticipated future expenses. Statements
made in this press release are qualified by the cautionary
statements made in this press release. Neither SandRidge nor the
Trustee intends, and neither assumes any obligation, to update any
of the statements included in this press release. An investment in
Common Units issued by SandRidge Mississippian Trust II is subject
to the risks described in the Trust’s Annual Report on Form 10-K
for the year ended December 31, 2015, and all of its other filings
with the SEC. The Trust’s quarterly and other filed reports are or
will be available over the Internet at the SEC’s web site at
http://www.sec.gov.
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version on businesswire.com: http://www.businesswire.com/news/home/20170126005719/en/
SandRidge Mississippian Trust IIThe Bank of New York
Mellon Trust Company, N.A., as TrusteeSarah Newell,
1-512-236-6555
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