Enduro Royalty Trust Announces Special Cash Distribution of Net Proceeds from Permian Basin Divestitures
September 25 2017 - 4:30PM
Business Wire
Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced
a special cash distribution to the holders of its units of
beneficial interest of $1.150005 per unit, payable on October 20,
2017 to unitholders of record on October 5, 2017. The special
distribution represents net proceeds allocable to Trust unitholders
from the divestiture of certain oil and natural gas properties in
the Permian Basin (the “Divestiture Properties”) that constituted
part of the properties burdened by the Trust’s 80% net profits
interest. At a special meeting of the Trust unitholders on August
30, 2017, the Trust unitholders approved (i) eight transactions
pursuant to which Enduro Resource Partners LLC (“Enduro”), the
sponsor of the Trust, 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 following table displays the aggregate net proceeds from the
sales of the Divestiture Properties and the aggregate net proceeds
allocable to Trust unitholders:
Proceeds from sale of Divestiture Properties $
49,141,943 Less: Transaction expenses (766,737 ) Net
proceeds from sale of Divestiture Properties 48,375,206 Percentage
allocable to Trust’s net profits interest 80 % Net proceeds
allocable to the Trust 38,700,165 Escrow holdback amount
(750,000 )
Cash available for distribution by the Trust
$ 37,950,165 Number of units 33,000,000
Special cash distribution per unit $ 1.150005
The total proceeds received by Enduro from the Divestiture
Properties, after preliminary closing adjustments, were
approximately $49.1 million. Transaction expenses, including
expenses associated with the purchase and sale agreements as well
as expenses associated with the special meeting of Trust
unitholders on August 30, 2017 totaled $766,737. As previously
disclosed, an escrow amount of $750,000 is being held by Enduro to
cover possible indemnification obligations under the purchase and
sale agreements. Any remaining amount held in the escrow after
payment for any indemnities contained in the purchase and sale
agreements will be released and included in the regular monthly
distribution to unitholders within 25 months, or by the end of
October 2019.
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 by the Trust (and its ability to pay
distributions) has been and will be significantly and negatively
affected by prevailing low commodity prices, which have declined
significantly, could decline further and could remain low for an
extended period of time. 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/20170925006316/en/
Enduro Royalty TrustThe Bank of New York Mellon Trust Company,
N.A., as TrusteeSarah Newell, 1 512-236-6555
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