Enduro Royalty Trust Unitholders Approve Proposals for Sponsor to Sell Properties in the Permian Basin
August 30 2017 - 2:40PM
Business Wire
Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced
that at the special meeting of Trust unitholders held today,
unitholders approved (i) eight transactions pursuant to which
Enduro Resource Partners LLC (“Enduro”), the sponsor of the Trust,
will sell certain oil and natural gas properties in the Permian
Basin (the “Divestiture Properties”) that constitute a portion of
the properties burdened by the Trust’s 80% net profits interest,
(ii) the release of the Trust’s net profits interest in the
Divestiture Properties, and (iii) related proposals to effect the
sale transactions in exchange for the Trust receiving 80% of the
net proceeds of the sale of the Divestiture Properties.
The votes in favor of the sales of the Divestiture Properties
and related proposals constituted more than the required 75% of the
Trust units outstanding as of the record date for the special
meeting and, as a result, the proposals were approved and adopted
by the Trust unitholders.
Closings of the sales of the Divestiture Properties are expected
to occur on or before September 30, 2017. Following the closings,
Enduro will set a record date for the special distribution and
within 45 days of the closings of the transactions, Enduro will
distribute 80% of the net proceeds of the aggregate sales amounts,
less 80% of the expenses associated with the transactions and proxy
meeting expenses and associated holdback amounts, to unitholders of
record.
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 statements regarding the
anticipated distribution to unitholders as a result of the proposed
disposition of certain properties 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 as a result of
the sale of the underlying properties. 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, 2016, filed with the SEC on
March 15, 2017. 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/20170830006086/en/
Enduro Royalty TrustThe Bank of New York Mellon Trust Company,
N.A., as TrusteeSarah Newell, 1-512-236-6555
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