AUSTIN, Texas -- (Business Wire)
SANDRIDGE MISSISSIPPIAN TRUST I (NYSE: SDT) today announced a quarterly
distribution for the three-month period ended June 30, 2015 (which
primarily relates to production attributable to the Trust’s interests
from March 1, 2015 through May 31, 2015) of $8.4 million, or $0.3010 per
unit. The Trust makes distributions on a quarterly basis approximately
60 days after the end of each quarter. The distribution is expected to
occur on or before August 28, 2015 to holders of record as of the close
of business on August 14, 2015.
During the three-month production period ended May 31, 2015, sales
volumes were lower than the previous period and oil, natural gas and
natural gas liquids experienced volatile pricing. Net cash settlements
received under the derivatives agreement for the period were
approximately $5.9 million, which increased the average price received
per barrel of oil, including the effects of the derivatives and
post-production expenses, from $48.29 to $219.90, and increased the
quarterly income available for distribution to $0.3010 per unit. The
amount received under the derivatives agreement was attributable
primarily to the ratio of the oil volumes hedged to the oil volumes
produced and the substantial declines in the market prices of oil.
Although distributions related to production through December 31, 2015
are supported by hedging arrangements, no such arrangements are in place
for production attributable to periods after December 31, 2015. 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, Garfield, Grant and Woods
counties in Oklahoma 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 and natural gas 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)
| | | |
32
|
NGLs (MBbl)
| | | |
32
|
Gas (MMcf)
| | | |
580
|
Combined (MBoe)
| | | |
161
|
Average Price | | | |
Oil (per Bbl)
| | |
$
|
48.29
|
NGLs (per Bbl)
| | |
$
|
15.76
|
Gas (per Mcf)
| | |
$
|
2.16
|
Average Price - including impact of derivative settlements and
post-production expenses | | | |
Oil (per Bbl)
| | |
$
|
219.90
|
NGLs (per Bbl)
| | |
$
|
15.76
|
Gas (per Mcf)
| | |
$
|
2.23
|
Revenues | | | |
Royalty income
| | |
$
|
3,320
|
Derivative settlements
| | | |
5,888
|
Expenses | | |
|
780
|
Distributable income available to unitholders | | |
$
|
8,428
|
Distributable income per unit (28,000,000 units issued and
outstanding) | | |
$
|
0.3010
|
| | |
|
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 I 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 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 I is subject to the
risks described in the Trust’s Annual Report on Form 10-K for the year
ended December 31, 2014, 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150730005029/en/
Contacts:
SandRidge Mississippian Trust I
The Bank of New York
Mellon Trust Company, N.A., as Trustee
Sarah Newell,
1-512-236-6531
Source: SandRidge Mississippian Trust I
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