Whiting USA Trust I Announces Trust Quarterly Distribution
February 07 2013 - 3:53PM
Business Wire
Whiting USA Trust I (NYSE: WHX) announced the first Trust
distribution in 2013, which relates to net profits generated during
the fourth quarterly payment period of 2012.
Unitholders of record on February 19, 2013 will receive a
distribution amounting to $8,008,030 or $0.577618 per unit, which
is payable on or before March 1, 2013.
Volumes, average sales prices and net profits for the quarterly
payment period were:
Sales volumes:
Oil (Bbl) 184,257 Natural gas (Mcf) 647,344
Total (BOE) 292,148 Average sales prices: Oil (per Bbl) $ 77.86
Natural gas (per Mcf) $ 3.08 Gross proceeds: Oil sales $
14,347,061 Natural gas sales 1,992,164 Total gross
proceeds $ 16,339,225 Costs: Lease operating expenses(1) $
7,471,849 Production taxes 1,166,362 Realized gains on hedging
settlements (1,380,969 ) Total costs $ 7,257,242
Net profits $ 9,081,983 Percentage allocable to Trust’s Net
Profits Interest 90 % Total cash available for the
Trust $ 8,173,785 Provision for estimated Trust expenses (100,000 )
Montana state income taxes withheld (65,755 ) Net cash
proceeds available for distribution $ 8,008,030 Trust units
outstanding 13,863,889 Cash distribution per Trust
unit $ 0.577618
(1) The Trust’s underlying properties incurred increases in
lease operating expenses during 2012 related to a higher level of
workover activity and increased costs of oil field goods and
services associated with higher demand in the industry.
The 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. The net profits interest
will terminate when 9.11 MMBOE have been produced and sold from the
underlying properties (which amount is equivalent to 8.20 MMBOE
attributable to the net profits interest), and the Trust will soon
thereafter wind up its affairs and terminate, after which it will
pay no further distributions.
As of December 31, 2012, on a cumulative accrual basis, 6.10
MMBOE (74%) of the Trust’s total 8.20 MMBOE have been produced and
sold. Based on the Trust’s reserve report for the underlying
properties as of December 31, 2012, the 9.11 MMBOE of reserves
(8.20 MMBOE to the 90% net profits interest) are projected to be
produced from the underlying properties by June 30, 2015, which
reflects expected year over year decline rates ranging from
approximately 9% to 11% between 2013 and 2015. However, the rate of
future production cannot be predicted with certainty, and 9.11
MMBOE (8.20 MMBOE to the 90% net profits interest) may be produced
before or after the currently projected date. In addition, cash
distributions to unitholders may decline at a faster rate than the
rate of production due to fixed and semi-variable costs
attributable to the underlying properties.
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. Other
important factors that could cause actual results to differ
materially include expenses of the Trust, 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.
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