SandRidge Permian Trust Announces Quarterly Distribution
October 25 2018 - 4:15PM
Business Wire
SANDRIDGE PERMIAN TRUST (NYSE: PER) today announced a quarterly
distribution for the three-month period ended September 30, 2018
(which primarily relates to production attributable to the Trust’s
interests from June 1, 2018 to August 31, 2018) of approximately
$6.0 million, or $0.115 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
November 23, 2018 to holders of record as of the close of business
on November 9, 2018.
During the three-month production period ended August 31, 2018,
combined sales volumes were lower than the previous period and oil
prices decreased. 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 Central Basin Platform of the Permian Basin in
Andrews County, Texas 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 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, average prices and distributable income available to
unitholders for the period were (dollars in thousands, except per
unit):
Sales Volumes Oil (MBbl) 116 NGL (MBbl)
18 Natural Gas (MMcf) 53 Combined (MBoe) 142
Average Price
Oil (per Bbl) $ 57.30 NGL (per Bbl) $ 26.72 Natural Gas (per Mcf) $
1.76 Natural Gas (per Mcf) including impact of post-production
expenses $ 1.55
Revenues $ 7,193
Expenses
1,169
Distributable income available to unitholders $ 6,024
Distributable income per unit (52,500,000 units issued and
outstanding) $ 0.115
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 Permian Trust 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 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 unitholders. The
anticipated distribution is based, in part, on the amount of cash
received or expected to be received by the Trust from SandRidge
Energy, Inc. (“SandRidge”) with respect to the relevant period. Any
differences in actual cash receipts by the Trust could affect this
distributable amount. 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 impacted by
prevailing low commodity prices, which could remain low for an
extended period of time or decline further. 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 Permian Trust is
subject to the risks described in the Trust’s Annual Report on Form
10-K for the year ended December 31, 2017, 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
website at http://www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20181025005824/en/
SandRidge Permian TrustThe Bank of New York Mellon
Trust Company, N.A., as TrusteeSarah Newell,
1-512-236-6555
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