SandRidge Permian Trust Announces Quarterly Distribution
April 28 2016 - 4:15PM
Business Wire
SANDRIDGE PERMIAN TRUST (NYSE: PER) today announced a quarterly
distribution for the three-month period ended March 31, 2016 (which
primarily relates to production attributable to the Trust’s
interests from December 1, 2015 through February 29, 2016) of $4.8
million, or $0.090 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
May 27, 2016 to holders of record as of the close of business on
May 13, 2016.
During the three-month production period ended February 29,
2016, total sales volumes were lower than the previous period and
oil, natural gas and natural gas liquids (“NGL”) experienced
continued depressed pricing. 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, NGL and natural gas 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, price and distributable income available to unitholders
for the period were (dollars in thousands, except per unit):
Sales Volumes Oil (MBbl) 186 NGL (MBbl) 22
Natural Gas (MMcf) 77 Combined (MBoe) 221
Average Price Oil
(per Bbl) $ 30.18 NGL (per Bbl) $ 11.47 Natural Gas (per Mcf) $
1.77
Average Price - including impact of post-production
expenses Oil (per Bbl) $ 30.18 NGL (per Bbl) $ 11.47 Natural
gas (per Mcf) $ 1.57
Revenues Royalty income $ 5,995
Expenses 1,240
Distributable income available to
unitholders $ 4,755
Distributable income per unit
(52,500,000 units issued and outstanding) $ 0.090
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, currently 39.6% for
individuals, 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 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 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, 2015, 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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version on businesswire.com: http://www.businesswire.com/news/home/20160428006419/en/
SandRidge Permian TrustThe Bank of New York Mellon
Trust Company, N.A., as TrusteeSarah Newell,
1-512-236-6555
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