Whiting USA Trust I Announces Termination Date for Net Profits Interest and Final Distribution Date
February 16 2015 - 8:40PM
Business Wire
Whiting USA Trust I announced the Trust determined today that
the net profits interest terminated effective January 28, 2015. The
net profits interest terminated as a result of 9.11 MMBOE (which
amount is equivalent to 8.20 MMBOE attributable to the net profits
interest) having been produced and sold from the underlying
properties. Pursuant to the terms of the net profits interest, a
final distribution will be made no later than March 30, 2015, to
holders of record on March 19, 2015. Prior to such record date, the
Trust will issue a press release announcing the amount of such
distribution. Additionally, the stock transfer books for the Trust
units will be closed on the close of business on March 19, 2015. As
previously disclosed in the press release issued by the Trust on
February 6, 2015, in addition to the final distribution to be made
by March 30, 2015, 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.
Given the time lag between when production is produced and sold
and the receipt of revenues and payment of expenses relating
thereto, on or about August 31, 2015, the Trust may make a
“true-up” distribution if, after the receipt of revenues and
payment of expenses, the final distribution is higher than the
amount paid by March 30, 2015. Holders of record on March 19, 2015
will be entitled to such distribution, if any. There may not be any
“true-up” distribution or, if there is one, it is not likely to be
significant. After any “true-up” distribution or determination that
no such payment will be made, the Trust will soon thereafter wind
up its affairs and terminate, after which it will pay no further
distributions.
The market price of the Trust units should decline to zero
around or shortly after the record date for the final distribution
and any “true-up” distribution. To the extent that the Trust units
are trading at a price in excess of the aggregate distributions
that may reasonably be expected to be made prior to the termination
of the Trust, the price decline is likely to include one or more
abrupt decreases.
As previously disclosed in the press release issued by the Trust
on February 13, 2015, the New York Stock Exchange (the “NYSE”)
informed the Trust that the Trust was not in compliance with the
NYSE’s continued listing standards, which requires that the average
closing price of the Trust units cannot be less than $1.00 per
share over a period of 30 consecutive trading days. As a result,
the Trust units will cease trading on the NYSE effective before
market open on February 17, 2015. Under the NYSE delisting
procedures, the Trust has the right to appeal such decision, but
the Trust does not intend to do so. The Trust expects the Trust
units to transition to OTC Pink, operated by OTC Markets Group,
effective with the opening of trading on February 17, 2015.
However, there is no assurance that an active market in the Trust
units will develop on OTC Pink.
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 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. Important factors that could cause actual results to differ
materially include expenses of the Trust and fluctuations in oil
and natural gas prices. 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.
Whiting USA Trust IThe Bank of New York Mellon Trust
Company, N.A., as TrusteeMike Ulrich,
512-236-6599http://whx.investorhq.businesswire.com/