SandRidge Permian Trust Announces Distribution of $0.55 Per Unit
February 02 2012 - 4:15PM
Business Wire
SANDRIDGE PERMIAN TRUST (NYSE: PER) today announced a quarterly
distribution for the three month period ended December 31, 2011
(which primarily relates to production attributable to the Trust’s
interests from September 1, 2011 through November 30,
2011) of $29.1 million, or $0.553523 per unit. The Trust makes
distributions on a quarterly basis approximately 60 days after the
end of each quarter. The distribution is expected to occur on or
before February 29, 2012 to holders of record as of the close
of business on February 14, 2012.
The Trust was formed by SandRidge Energy, Inc. (“SandRidge”) in
May 2011 to own royalty interests in oil and natural gas properties
leased by SandRidge 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 and natural gas prices and the
amount and timing of the Trust’s administrative expenses, among
other factors. Although there is no assurance of any minimum
distribution in any quarterly period, during the subordination
period (as described in the Trust’s filings), holders of Common
Units will be entitled to receive an amount up to the
“Subordination Threshold” (which varies from quarter to quarter)
prior to any distribution being made for that quarter in respect of
the Subordinated Units, all of which are held by SandRidge. If the
amount available for distribution in any quarterly period is
sufficient to distribute an amount equal to the Subordination
Threshold to the holders of all units (including the Subordinated
Units), any additional balance is distributed to holders of all
units, up to the amount of the Incentive Threshold for the quarter.
Common units are entitled to receive 50% of any cash available for
distribution in excess of the Incentive Threshold for the
quarter.
Volumes, price and distributable income available to unitholders
for the period were (dollars in thousands, except per unit):
Sales Volumes Oil (MBbl) (1) 343 Gas (MMcf) 85
Combined (MBoe) 357
Average Price Oil (per Bbl) (1) $ 84.38
Gas (per Mcf) $ 2.95
Average Price - including impact of
derivative settlements and post-production expenses Oil
(per Bbl) (1) $ 91.57 Gas (per Mcf) $ 2.47
Revenues Royalty
income $ 29,166 Derivative settlements 2,464
Expenses
2,570
Distributable income available to unitholders $ 29,060
Distributable income per unit (52,500,000 units issued
and outstanding) $ 0.553523
(1) Includes natural gas liquids.
In addition to the initial producing wells, SandRidge, pursuant
to a development agreement with the Trust, is obligated to drill,
or cause to be drilled, the equivalent of 888 development wells,
determined by reference to SandRidge’s net revenue interest in a
well, in an area of mutual interest on or before March 31,
2015. In the event of delays, SandRidge will have until
March 31, 2016 to fulfill its drilling obligation.
To date, equivalent development wells drilled and perforated for
completion during production periods upon which distributions are
based are as follows:
Equivalent Producing
Additional Drilled Total Development
As of Development Wells Development Wells*
Wells 8/31/2011 85.2 20.7 105.9 11/30/2011 159.7 18.8 178.5
*Equivalent development wells that are not producing at the ‘As
of’ date but have been drilled and perforated for completion.
SandRidge Energy, Inc., the sponsor of SandRidge Permian Trust,
announced that it will host a conference call on February 17, 2012
at 9:00 am CST. The telephone number to access the conference call
from within the U.S. is 888-873-4896 and from outside the U.S. is
617-213-8850. The participant code for the call is 59650379. The
call may also be accessed via the internet at http://www.media-server.com/m/p/2agkmenx. An audio
replay of the call will be available from February 17, 2012
until 11:59 pm CST on February 24, 2012. The number to access
the conference call replay from within the U.S. is 888-286-8010 and
from outside the U.S. is +1-617-801-6888. The participant code for
the replay is 89380179.
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 release is intended to
be a qualified notice to nominees and brokers as provided for under
Treasury Regulation Section 1.1446-4(b) by SandRidge Permian Trust,
and while specific relief is not specified for Section 1441 income,
this disclosure is intended to suffice. Nominees and brokers should
withhold 35% of 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 Trust Units issued by
SandRidge Permian Trust is subject to the risks described in the
Trust’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2011, 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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