SandRidge Permian Trust Announces Quarterly Distribution
July 27 2017 - 3:15PM
Business Wire
SANDRIDGE PERMIAN TRUST (NYSE: PER) today announced a quarterly
distribution for the three-month period ended June 30, 2017 (which
primarily relates to production attributable to the Trust’s
interests from March 1, 2017 to May 31, 2017) of $6.2 million, or
$0.119 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 August 25, 2017
to holders of record as of the close of business on August 11,
2017.
During the three-month production period ended May 31, 2017,
combined sales volumes were slightly lower than the previous period
and oil, natural gas and natural gas liquids (“NGL”) prices
decreased. 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 Central Basin Platform of the Permian Basin in
Andrews County, Texas 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, NGL 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) 144 NGL (MBbl) 21
Natural Gas (MMcf) 69 Combined (MBoe) 177
Average Price Oil
(per Bbl) $ 46.15 NGL (per Bbl) $ 18.77 Natural Gas (per Mcf) $
2.07 Natural Gas (per Mcf) including impact of post-production
expenses $ 1.86
Revenues $ 7,202
Expenses
1,001
Distributable income available to unitholders $ 6,201
Distributable income per unit (52,500,000 units issued and
outstanding) $ 0.119
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 Permian Trust 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. The amount of such cash received
or expected to be received by the Trust (and its ability to pay
distributions) has been and will be significantly and negatively
impacted by prevailing low commodity prices, which could remain low
for an extended period of time or decline further. 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 Permian
Trust is subject to the risks described in the Trust’s Annual
Report on Form 10-K for the year ended December 31, 2016, 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/20170727005981/en/
SandRidge Permian TrustThe Bank of New York Mellon
Trust Company, N.A., as TrusteeSarah Newell,
1-512-236-6555
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