SandRidge Mississippian Trust II Announces Quarterly Distribution
July 28 2016 - 4:05PM
Business Wire
SANDRIDGE MISSISSIPPIAN TRUST II (NYSE: SDR) today announced a
quarterly distribution for the three-month period ended June 30,
2016 (which primarily relates to production attributable to the
Trust’s interests from March 1, 2016 through May 31, 2016) of $2.6
million, or $0.053 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 26, 2016 to holders of record as of the close of business on
August 12, 2016.
During the three-month production period ended May 31, 2016,
total sales volumes were slightly lower than the previous period.
The decrease in revenue compared to the previous period was
partially due to the expiration of the derivatives agreement that
had provided the Trust with the economic effect of certain oil
derivative contracts entered into by SandRidge Energy, Inc. with
third parties for production through December 31, 2015. The Trust
no longer has the benefit of the derivative contracts, and
therefore the amount of future cash distributions will be subject
to unmitigated changes in oil and natural gas prices. The Trust
does not have the ability to enter into additional derivative
contracts. 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 Mississippian formation in Alfalfa, Grant, Kay,
Noble and Woods counties in northern Oklahoma and Barber, Comanche,
Harper and Sumner counties in southern Kansas 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, natural gas and natural
gas liquids (“NGL”) 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) 42 NGL (MBbl) 69
Natural Gas (MMcf) 867 Combined (MBoe) 255
Average Price Oil
(per Bbl) $ 37.01 NGL (per Bbl) $ 12.25 Natural Gas (per Mcf) $
1.38 Natural Gas (per Mcf) including impact of post-production
expenses $ 0.78
Revenues $ 3,586
Expenses 975
Distributable income available to unitholders $ 2,611
Distributable income per unit (49,725,000 units issued and
outstanding) $ 0.053
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 Mississippian Trust II 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 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. 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 Mississippian Trust II is subject to the risks described
in the Trust’s Annual Report on Form 10-K for the year ended
December 31, 2015, 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/20160728006140/en/
SandRidge Mississippian Trust IIThe Bank of New York
Mellon Trust Company, N.A., as TrusteeSarah Newell,
1-512-236-6555
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