UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): February 6, 2015
WHITING USA TRUST I
(Exact name of Registrant as specified in its charter)
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Delaware |
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001-34026 |
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26-6053936 |
(State or other jurisdiction of |
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(Commission |
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(I.R.S. Employer |
incorporation or organization) |
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File Number) |
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Identification No.) |
The Bank of New York Mellon Trust Company, N.A., Trustee
Global Corporate Trust
919 Congress Avenue
Austin, Texas 78701
(Address of principal executive offices)
Registrants telephone number, including area code: (512) 236-6599
NOT APPLICABLE
(Former
name, former address and former fiscal year,
if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02. Results of Operations and Financial Condition.
Attached as Exhibit 99.1 is a press release issued on behalf of the Registrant. The information
furnished is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the
Securities Act of 1933, as amended.
ITEM 9.01. Financial Statements and Exhibits.
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99.1 |
Press Release dated February 6, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
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Whiting USA Trust I |
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By: |
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The Bank of New York Mellon Trust Company, N.A.,
as Trustee |
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By: |
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/s/ Mike Ulrich |
Name: |
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Mike Ulrich |
Title: |
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Vice President |
Date: February 6, 2015
Exhibit Index
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Exhibit Number |
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Description
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99.1 |
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Press Release dated February 6, 2015. |
Exhibit 99.1
Whiting USA Trust I
Whiting USA Trust I Announces Trust Quarterly Distribution
WHITING USA TRUST I
The Bank of New York Mellon Trust Company,
N.A., Trustee
FOR IMMEDIATE RELEASE
Austin, Texas, February 6, 2015 Whiting USA Trust I (NYSE Symbol WHX) announced the first Trust distribution in 2015, which
relates to net profits generated during the fourth quarterly payment period of 2014.
Unitholders of record on February 19, 2015 will
receive a distribution of $0.283085 per unit, which is payable on or before March 2, 2015.
Volumes, average sales prices and net profits for the
quarterly payment period were:
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Sales volumes: |
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Oil (Bbl)(1) |
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169,823 |
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Natural gas (Mcf) |
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614,063 |
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Total (BOE) |
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272,167 |
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Average sales prices: |
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Oil (per Bbl)(1) |
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$ |
64.62 |
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Natural gas (per Mcf) |
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$ |
3.58 |
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Gross proceeds: |
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Oil sales(1) |
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$ |
10,974,371 |
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Natural gas sales |
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2,199,793 |
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Total gross proceeds |
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$ |
13,174,164 |
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Costs: |
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Lease operating expenses |
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$ |
7,582,125 |
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Production taxes |
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865,643 |
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Total costs |
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$ |
8,447,768 |
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Net profits |
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$ |
4,726,396 |
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Percentage allocable to Trusts Net Profits Interest |
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90% |
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Total cash available for the Trust |
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$ |
4,253,756 |
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Provision for estimated Trust expenses |
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(300,000) |
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Montana state income taxes withheld |
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(29,098) |
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Net cash proceeds available for distribution |
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$ |
3,924,658 |
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Trust units outstanding |
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13,863,889 |
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Cash distribution per Trust unit |
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$ |
0.283085 |
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(1) |
Oil includes natural gas liquids. |
The Trusts net profits interest represents the right to receive 90% of the net proceeds from Whiting Petroleum Corporations
interests in certain existing oil and natural gas producing properties located primarily in the Rocky Mountains, Mid-Continent, Permian Basin and Gulf Coast regions of the United States. As described in the Trusts public filings, since the
assets of the Trust are depleting assets, a portion of each cash distribution paid on the Trust units should be considered by investors as a return of capital, with the remainder being considered as a return on investment or yield.
As of December 31, 2014, on a cumulative accrual basis, 8.11 MMBOE (99%) of the
Trusts total 8.20 MMBOE have been produced and sold and 0.02 MMBOE have been divested. The net profits interest will terminate when 9.11 MMBOE (8.20 MMBOE to the 90% net profits interest) have been produced and sold from the underlying
properties, and the Trust will soon thereafter wind up its affairs and terminate, after which it will pay no further distributions. Consequently the market price of the Trust units should decline to zero around or shortly after the record date for
the final expected distribution. Based on the Trusts reserve report for the underlying properties as of December 31, 2014, 9.11 MMBOE were projected to be produced by January 31, 2015 and, accordingly, the net profits interest
termination date is currently estimated to have occurred. However, due to January production data not being available yet, we are not able to determine the final net profits interest termination date as of the date of this press release.
Once it has been determined that 9.11 MMBOE has been produced and sold from the underlying properties, the Trust will shortly thereafter issue
a press release announcing the actual net profits interest termination date, the final record and distribution dates for unitholders and the wind up process for the Trust. To the extent that the Trust units are trading at a price in excess of the
aggregate distributions that may be reasonably expected to be made prior to the termination of the Trust, the market price decline in Trust units is likely to include one or more abrupt decreases.
In order for the Trust units to remain listed on the New York Stock Exchange (NYSE), the average closing price over a consecutive
30-trading day period cannot be less than $1.00, and the Trust unit selling price cannot be abnormally low, as determined by the NYSE. As of the date of this release, the units have been trading below $1.00 for 13 consecutive trading
days. If the Trust units are delisted from the NYSE, the Trust expects that they would continue to trade off-exchange (over-the-counter). However, there is no assurance that an active market in the Trust units will develop off-exchange.
This press release contains forward-looking statements, including all statements made in this press release other than statements of
historical fact. No assurances can be given that such statements will prove to be correct. The announced distributable amount is based, in part, on the amount of cash received or expected to be received by the Trust from Whiting Petroleum
Corporation pursuant to the net profits interest with respect to the relevant quarterly period. Any differences in actual cash receipts by the Trust could affect this distributable amount. Additionally, the estimated time when the market price of
the Trust units should decline to zero is based on the economic rights of the Trust units. The trading price of the Trust units is affected by factors outside of the control of the Trust or Whiting, including actions of market participants, among
others. Other important factors that could cause actual results to differ materially include expenses of the Trust, an increase in the cash reserve for the payment of expenses after the final distribution to unitholders, fluctuations in oil and
natural gas prices, uncertainty of estimates of oil and natural gas reserves and production, risks inherent in the operation and production of oil and gas properties, and future production costs. Statements made in this press release are qualified
by the cautionary statements made in this press release. The Trustee does not intend, and assumes no obligation, to update any of the statements included in this press release.
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Contact: |
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Whiting USA Trust I |
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The Bank of New York Mellon Trust Company, N.A., as Trustee |
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Mike Ulrich |
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(512) 236-6599 |
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919 Congress Avenue, Austin, TX 78701 |
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http://whx.investorhq.businesswire.com/ |
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