Enduro Royalty Trust Announces Closing of Permian Basin Divestitures
September 12 2017 - 4:30PM
Business Wire
Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced
that Enduro Resource Partners LLC (“Enduro”), the sponsor of the
Trust, has advised The Bank of New York Mellon Trust Company, N.A.,
as Trustee, that Enduro has completed the divestiture of certain
oil and natural gas properties in the Permian Basin (the
“Divestiture Properties”) that constitute part of the properties
burdened by the Trust’s 80% net profits interest. As previously
announced, at a special meeting of the Trust unitholders on August
30, 2017, the Trust unitholders approved (i) eight transactions
pursuant to which Enduro would sell the Divestiture Properties,
(ii) the release of the Trust’s 80% 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 total proceeds received by Enduro from the Divestiture
Properties, after preliminary closing adjustments, were
approximately $49.1 million. Enduro will deduct final transaction
expenses from the sales proceeds, along with an escrow amount of
$750,000 to cover possible indemnification obligations under the
purchase and sale agreements, to arrive at final net proceeds, of
which 80% will be paid to Trust unitholders. Enduro will set a
record date and the special distribution will be paid to Trust
unitholders on or before October 27, 2017. Within 25 months of the
closing of the transactions, any remaining amount held in the
escrow will be released and included in a distribution to
unitholders.
About Enduro Royalty Trust
The Trust is a Delaware statutory trust formed by Enduro 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’s 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
disposition of certain properties and expected expenses. 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/20170912006743/en/
Enduro Royalty TrustThe Bank of New York Mellon Trust Company,
N.A., as TrusteeSarah Newell, 1-512-236-6555
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