AUSTIN, Texas -- (Business Wire)
Whiting USA Trust I (OTC Pink: WHXT) announced it determined today that
there will be a payment made to unitholders for the “true-up” to the
final distribution, which relates to net proceeds generated from January
1, 2015 through the net profits interest termination date of January 28,
2015 (the “final distribution period”). As discussed in the March 10,
2015 press release, the Trust preliminarily determined that there would
be no final distribution to unitholders due to the net profits interest
generating a net loss during the final distribution period. However, the
determination of the preliminary net loss was based on calculations that
included estimates of certain revenues and expenses. As such, a
“true-up” to the final distribution has been calculated based on the
receipt of actual revenues and payment of actual expenses attributable
to the final distribution period, which resulted in the net profits
interest generating net proceeds. After payment of this “true-up”
distribution, the Trust units will be cancelled and the Trust will wind
up its affairs and terminate.
Unitholders of record on March 19, 2015 will receive a distribution of
$0.061505 per unit, which will be paid on September 8, 2015. The stock
transfer books for the Trust were closed at the close of business on
March 19, 2015. As of March 19, 2015, 99.9% of the Trust’s total
13,863,889 units outstanding were held by Cede & Co. (The Depository
Trust Corporation’s nominee) and Whiting Petroleum Corporation
(“Whiting”) as the official unitholders of record. The March 19, 2015
record date, however, is only applicable to unitholders of record such
as Cede & Co. and Whiting, and the ex-date, as discussed below, actually
determines which street name holders will be eligible to receive this
distribution.
The ex-date for the “true-up” to the final distribution has not been
set. The Financial Industry Regulatory Authority, Inc., or FINRA, will
set the ex-date after the Trust issues this press release. The Trustee
does not set the ex-date, and therefore, investors should contact their
broker with any questions about the ex-date for this distribution.
Volumes, average sales prices and net proceeds for the final
distribution period, which includes the “true-up” to the final
distribution, were:
Sales volumes:
|
| |
Oil (Bbl)(1) | | |
92,548
| |
Natural gas (Mcf)
| |
|
428,219
|
|
Total (BOE)
| | |
163,918
| |
Average sales prices:
| | |
Oil (per Bbl)(1) | |
$
|
43.45
| |
Natural gas (per Mcf)
| |
$
|
3.50
| |
Gross proceeds:
| | |
Oil sales(1) | |
$
|
4,021,204
| |
Natural gas sales
| |
|
1,498,697
|
|
Total gross proceeds
| |
$
|
5,519,901
|
|
Costs:
| | |
Lease operating expenses(2) | |
$
|
3,967,572
| |
Production taxes
| |
|
681,356
|
|
Total costs
| |
$
|
4,648,928
|
|
Net proceeds
| |
$
|
870,973
| |
Percentage allocable to Trust’s Net Profits Interest | |
|
90
|
%
|
| |
|
Total cash available for the Trust
| |
$
|
783,876
| |
Refund of estimated Trust expense withholdings
| | |
75,185
| |
Montana state income taxes withheld
| |
|
(6,367
|
)
|
Net cash proceeds available for distribution
| |
$
|
852,694
| |
Trust units outstanding
| |
|
13,863,889
|
|
Cash distribution per Trust unit
| |
$
|
0.061505
|
|
| | | |
|
(1)
|
|
Oil includes natural gas liquids.
|
(2)
| |
The Trust’s underlying properties experienced lower than expected
lease operating expense (“LOE”) during the final distribution period
due to decreases in the cost of oilfield goods and services as a
result of lower demand in the industry. LOE on a per BOE basis for
the final distribution period was $24.20, which is a decline of 13%
(or $3.66) as compared to the Trust’s distribution to unitholders
for the fourth quarterly payment period of 2014.
|
| |
|
The Trust’s net profits interest, which terminated effective January 28,
2015, represented 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 were depleting assets, a portion of each cash
distribution paid on the Trust units should have been considered by
investors to be a return of capital, with the remainder being considered
as a return on investment or yield.
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 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. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150827006012/en/
Contacts:
Whiting USA Trust I
The Bank of New York Mellon Trust
Company, N.A., as Trustee
Mike Ulrich, 512-236-6599
http://whx.investorhq.businesswire.com/
Source: Whiting USA Trust I
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