NDRO Enduro Royalty Trust Trust Units Representing Beneficial Interest IN The Trust

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 19, 2014

 

 

Enduro Royalty Trust

(Exact name of registrant as specified in its charter)

 

 

 

Delaware		1-35333		45-6259461
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

The Bank of New York Mellon Trust Company, N.A., Trustee Global Corporate Trust 919 Congress Avenue Austin, Texas		78701
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (512) 236-6555

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02 Results of Operations and Financial Condition.

On August 19, 2014, Enduro Royalty Trust issued a press release announcing Enduro Royalty Trust’s distribution to be made in September 2014. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

Pursuant to General Instruction B.2 of Form 8-K and Securities and Exchange Commission Release No. 33-8176, the press release attached as Exhibit 99.1 is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, but is instead furnished for purposes of that instruction.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit 99.1		Enduro Royalty Trust Press Release dated August 19, 2014.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

				Enduro Royalty Trust
				By:		The Bank of New York Mellon Trust Company, N.A., as
						Trustee
Date: August 19, 2014				By:		/s/ Sarah Newell
						Sarah Newell
						Vice President

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EXHIBIT INDEX

 

Exhibit		Description
99.1		Enduro Royalty Trust Press Release dated August 19, 2014.

Exhibit 99.1

 

Enduro Royalty Trust Announces Current Wolfcamp Activity

And Reports Monthly Cash Distribution

AUSTIN, Texas—(BUSINESS WIRE)— August 19, 2014

Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced results from recently completed wells in the Wolfcamp play in the Midland Basin and reported its monthly cash distribution to be paid in September 2014.

Wolfcamp Production Results and Activity Update

During June and July, several Wolfcamp wells were completed and are currently producing. Of the 20 gross well proposals received from Pioneer Natural Resources to date, 13 wells are currently producing, 2 are waiting on completion, 2 are drilling, and 3 are waiting to be spud. The following table displays the 24-hour peak gross flowback rate for wells that began producing in July and early August:

 

Well Name		Enduro Working Interest				First Production Date				24-Hour IP Rate (BOE/D)
Rocker B 43H			6.25	%			7/25/2014				1,250
Rocker B 45H			6.25	%			7/26/2014				957
Rocker B 46H			6.25	%			7/13/2014				1,094
Rocker B 47H			6.25	%			7/20/2014				528
Rocker B 48H			6.25	%			7/12/2014				1,048
Rocker B 72H			12.50	%			8/5/2014				1,205
Rocker B 73H			12.50	%			7/31/2014				1,121
Rocker B 74H			12.50	%			7/31/2014				1,241

The following table displays the current status of the Wolfcamp wells in progress and those producing wells for which initial production rates are not yet available and Enduro’s working interest percentage:

 

Well Name		Current Status		County & State		Enduro Working Interest
Rocker B 44H		Producing		Reagan, TX			6.25	%
Rocker B 51H		Waiting on Completion		Irion, TX			12.50	%
Rocker B 52H		Waiting on Completion		Irion, TX			12.50	%
Rocker B 53H		Drilling		Irion, TX			12.50	%
Rocker B 54H		Drilling		Irion, TX			12.50	%
Rocker B 60H		Waiting to Spud		Irion, TX			12.50	%
Rocker B 61H		Waiting to Spud		Irion, TX			12.50	%
Rocker B 62H		Waiting to Spud		Irion, TX			12.50	%
Rocker B 71H		Producing		Irion, TX			12.50	%

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As noted above, there has been significant activity in the Permian Basin Wolfcamp program during June and July. During the month of July 2014, 2 Rocker B wells were spud and 9 wells were in various stages of completion. As a result, significant capital was invested during those months which impacts the current month distribution and will impact the September distribution. Enduro anticipates that cash receipts from the sale of production from these new wells will be included in distributions during the fourth quarter when Enduro anticipates increased production.

Monthly Cash Distribution

A cash distribution of $0.037803 per unit will be paid on September 15, 2014 to the Trust’s unitholders of record on August 29, 2014. The distribution primarily represents oil production during the month of May 2014 and natural gas production during April 2014.

The following table displays underlying oil and natural gas sales volumes and average prices attributable to the current and prior month distributions.

 

		Underlying Sales Volumes								Average Price
		Oil (Bbls)				Natural Gas (Mcf)				Oil (per Bbl)				Natural Gas (per Mcf)
Current Month			72,290				418,044			$	93.01			$	4.63
Prior Month			78,525				450,004			$	93.95			$	4.86

Oil cash receipts for the properties underlying the Trust totaled $6.7 million for the month, a decrease of $0.7 million from the prior month due to the inclusion in the prior month of multiple months of revenue for the first three Rocker B wells. The prior month included approximately $1.1 million in revenue from those wells and represented oil production from February, March and April and natural gas production from February and March.

Natural gas receipts for the properties underlying the Trust decreased $0.3 million from the prior month, totaling $1.9 million, as a result of decreased wellhead prices resulting from wider basis differentials as well as decreased sales volumes due to one less production day in April and differences in the timing of cash receipts.

Capital expenditures included in the current month distribution totaled approximately $3.4 million, which relates to capital expenditures incurred in June. Approximately $2.4 million of the capital incurred related to the Wolfcamp activity in the Midland Basin. Through June, capital incurred for projects in the Wolfcamp Rocker B program has totaled $10.9 million.

About Enduro Royalty Trust

Enduro Royalty Trust is a Delaware statutory trust formed by Enduro Resource Partners to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain of Enduro Resource Partners’ properties in the states of Texas, Louisiana and New Mexico. As described in the Trust’s filings with the Securities and Exchange Commission, the amount of the periodic distributions is expected to fluctuate, depending on the proceeds received by the Trust as a result of actual production volumes, oil and gas prices and the amount and timing of capital expenditures and the Trust’s administrative expenses, among other factors. Future distributions are expected to be made on a monthly basis. For additional information on the Trust, please visit www.enduroroyaltytrust.com.

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Forward-Looking Statements and Cautionary Statements

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 unitholders. The anticipated distribution is based, in part, on the amount of cash received or expected to be received by the Trust from Enduro Resource Partners 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. Initial production rates may not be indicative of future production rates and are not indicative of the amounts of oil and gas that a well may produce. Statements made in this press release are qualified by the cautionary statements made in this press release. Neither Enduro Resource Partners nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release. An investment in units issued by Enduro Royalty Trust is subject to the risks described in the Trust’s filings with the SEC, including the risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 11, 2014. The Trust’s quarterly and other filed reports are or will be available over the Internet at the SEC’s website at http://www.sec.gov.

Contact

Enduro Royalty Trust

The Bank of New York Mellon Trust Company, N.A., as Trustee

Sarah Newell 1 (512) 236-6555