Enduro Royalty Trust Announces Monthly Cash Distribution
October 20 2015 - 9:00AM
Business Wire
Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced
a cash distribution to the holders of its units of beneficial
interest of $0.042364 per unit, payable on November 16, 2015 to
unitholders of record on October 30, 2015. The distribution
primarily represents oil production during the month of July 2015
and natural gas production during June 2015.
The following table displays underlying oil and natural gas
sales volumes and average received wellhead prices attributable to
the current and prior month net profits interest calculations.
Underlying Sales Volumes Average
Price Oil Natural Gas Oil
Natural Gas Bbls Bbls/D Mcf
Mcf/D (per Bbl) (per Mcf)
Current Month 71,875 2,319 394,272 13,142 $ 50.38 $
2.47 Prior Month 72,290 2,410 440,374 14,206 $ 56.29 $ 2.37
Oil cash receipts for the properties underlying the Trust
totaled $3.6 million for the current month, a decrease of $0.4
million from the prior month calculation. The decrease was
primarily due to a 14% decrease in NYMEX oil prices from June to
July 2015. Natural gas receipts were consistent with the prior
month, totaling $1.0 million. The decrease in natural gas sales
volumes resulted primarily from differences in the timing of cash
receipts.
Total direct operating expenses, including lease operating
expenses (“LOE”), production and ad valorem taxes, and gathering
and transportation expenses, totaled $2.5 million, which was
consistent with the prior month. The reduction in direct operating
expenses over the past several distribution periods is primarily
attributable to actual LOE for prior months continuing to be lower
than anticipated, resulting in adjustments to accruals for incurred
LOE. LOE accrual reductions of $0.3 million and $0.5 million ($0.2
million and $0.4 million net to the Trust), respectively, are
included in the current and prior month distributions. Capital
expenditures included in the current month distribution totaled
$0.3 million. Total direct operating expenses and capital
expenditures relate to expenses incurred during August 2015.
2015 Capital Program Update
Due to the continued low commodity price environment, total
capital expenditures included in 2015 announced distributions have
been less than anticipated. Through the current month calculation,
incurred capital expenditures have totaled $8.6 million for the
year, or $6.9 million net to the Trust. Enduro Resource Partners
(“Enduro”), the sponsor of the Trust, anticipates minimal capital
expenditures for the remaining two months of 2015.
Unused Firm Capacity Reservation Fees
As previously disclosed, one operator in the Elm Grove field of
the East Texas/North Louisiana region has been withholding revenue
payments since November 2014 production in settlement of unused
firm capacity reservation fees that were retroactively charged back
to January 2012. In September 2015, Enduro received notice from the
operator that all of the unused firm capacity reservation fees,
totaling approximately $0.3 million for the properties underlying
the Trust, had been recouped. As Enduro did not receive payment on
properties subject to the unused firm capacity fees, revenues and
other deductions from production during the recoupment period have
not been included in the distribution calculations. The revenues,
which will be offset by standard deductions and the unused firm
capacity reservation fees, will be included in the distribution
calculation within the next three months.
As previously disclosed, the operator sold the conventional
wells in the Elm Grove field in late 2014, which constituted the
majority of the revenue. Enduro has been receiving revenue from the
new operator, and this revenue has been included in distributions
since the distribution announced in May 2015.
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,
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.
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 and expected expenses,
including capital expenditures. The anticipated distribution is
based, in large 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. The amount of such cash received or
expected to be received is significantly affected by prevailing
commodity prices. 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 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, 2014, filed with the SEC on March 12, 2015. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20151020005434/en/
Enduro Royalty TrustThe Bank of New York Mellon Trust Company,
N.A., as TrusteeSarah Newell, 1-512-236-6555
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