SandRidge Mississippian Trust I Announces Quarterly Distribution
October 29 2015 - 4:15PM
Business Wire
SANDRIDGE MISSISSIPPIAN TRUST I (NYSE: SDT) today announced a
quarterly distribution for the three-month period ended September
30, 2015 (which primarily relates to production attributable to the
Trust’s interests from June 1, 2015 through August 31, 2015) of
$8.5 million, or $0.3046 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
November 27, 2015 to holders of record as of the close of business
on November 13, 2015.
During the three-month production period ended August 31, 2015,
sales volumes were lower than the previous period and oil, natural
gas and natural gas liquids experienced continued depressed
pricing. Net cash settlements received under the derivatives
agreement for the period were approximately $6.2 million, which
increased the average price received per barrel of oil, including
the effects of the derivatives and post-production expenses, from
$47.71 to $245.40, and increased the quarterly income available for
distribution to $0.3046 per unit. The amount received under the
derivatives agreement was attributable primarily to the ratio of
the oil volumes hedged to the oil volumes produced and substantial
declines in the market prices of oil compared to contract prices.
Although distributions related to production through December 31,
2015 are supported by hedging arrangements, no such arrangements
are in place for production attributable to periods after December
31, 2015 and consequently distributions for production periods
beginning January 1, 2016 or later should be expected to be
dramatically lower than distributions for recent periods. 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 Mississippian formation in Alfalfa, Garfield,
Grant and Woods counties in Oklahoma 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. 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) 30 NGLs (MBbl) 28 Gas
(MMcf) 548 Combined (MBoe) 149
Average Price Oil (per Bbl) $
47.71 NGLs (per Bbl) $ 12.86 Gas (per Mcf) $ 2.37
Average Price
- including impact of derivative settlements and post-production
expenses Oil (per Bbl) $ 245.40 NGLs (per Bbl) $ 12.86 Gas (per
Mcf) $ 2.40
Revenues Royalty income $ 3,081 Derivative
settlements 6,184
Expenses 737
Distributable
income available to unitholders $ 8,528
Distributable income
per unit (28,000,000 units issued and outstanding) $ 0.3046
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 Mississippian Trust I 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 Mississippian Trust I is subject to the risks described
in the Trust’s Annual Report on Form 10-K for the year ended
December 31, 2014, 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/20151029006388/en/
SandRidge Mississippian Trust IThe Bank of New York
Mellon Trust Company, N.A., as TrusteeSarah Newell,
1-512-236-6531
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