SandRidge Permian Trust Announces Quarterly Distribution
April 25 2019 - 4:21PM
Business Wire
SANDRIDGE PERMIAN TRUST (NYSE: PER) today announced a quarterly
distribution for the three-month period ended March 31, 2019 (which
primarily relates to production attributable to the Trust’s
interests from December 1, 2018 to February 28, 2019) of
approximately $3.8 million, or $0.071 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 24, 2019 to holders of record as
of the close of business on May 10, 2019.
During the three-month production period ended February 28,
2019, combined sales volumes were lower than the previous period
and the average oil price received from the sale of minerals
attributable to the Trust’s interests decreased as compared to the
three-month period ended November 30, 2018. As no additional
development wells will be drilled, the Trust’s production is
expected to decline each quarter during the remainder of its
life.
As previously announced, the Trustee intends to withhold the
greater of $190,000 or 3.5% of the funds otherwise available for
distribution each quarter to gradually increase existing cash
reserves by a total of approximately $2,275,000. The withholding
for this distribution is $190,000. This cash is reserved to pay or
provide for the payment of future known, anticipated or contingent
expenses or liabilities.
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) 104 Natural Gas
Liquids "NGL" (MBbl) 15 Natural Gas (MMcf) 46 Combined (MBoe) 126
Average Price Oil (per Bbl) $ 43.59 NGL (per Bbl) $ 18.54
Natural Gas (per Mcf) $ 2.08 Natural Gas (per Mcf) including impact
of post-production expenses $ 1.91
Revenues $ 4,883
Expenses 931
Distributable income $ 3,952
Additional cash reserve 190
Distributable income
available to unitholders $ 3,762
Distributable income per
unit (52,500,000 units issued and outstanding) $ 0.071
Pursuant to Internal Revenue Code 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, and
the Trustee’s planned withholding of funds to increase cash
reserves for future known, anticipated or contingent expenses or
liabilities of the Trust. The anticipated distribution is based, in
part, on the amount of cash received or expected to be received by
the Trust from Avalon Energy, LLC. (“Avalon”) 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 Avalon 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, 2018, 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/20190425005985/en/
SandRidge Permian TrustThe Bank of New York Mellon
Trust Company, N.A., as TrusteeSarah Newell1(512)
236-6555
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