Whiting USA Trust I Announces Trust Quarterly Distribution
10 November 2012 - 8:00AM
Business Wire
Whiting USA Trust I (NYSE: WHX) announced the fourth Trust
distribution in 2012, which relates to net profits generated during
the third quarterly payment period of 2012.
Unitholders of record on November 19, 2012 will receive a
distribution amounting to $7,102,969 or $0.512336 per unit, which
is payable on or before November 29, 2012.
Volumes, average sales prices and net profits for the quarterly
payment period were:
Sales volumes: Oil (Bbl) 189,433
Natural gas (Mcf) 672,805 Total (BOE) 301,567 Average
sales prices: Oil (per Bbl) $ 75.26 Natural gas (per Mcf) $ 2.69
Gross proceeds: Oil sales $ 14,256,943 Natural gas sales
1,810,836 Total gross proceeds $ 16,067,779
Costs: Lease operating expenses $ 7,897,842 Production taxes
1,098,277 Realized gains on hedging settlements (1,238,466 )
Total costs $ 7,757,653 Net profits $ 8,310,126
Percentage allocable to Trust’s Net Profits Interest 90 %
Total cash available for the Trust $ 7,479,113 Provision for
estimated Trust expenses (325,000 ) Montana state income taxes
withheld (51,144 ) Net cash proceeds available for
distribution $ 7,102,969 Trust units outstanding
13,863,889 Cash distribution per Trust unit $ 0.512336
The net profits interest represents the right to receive 90% of
the net proceeds from Whiting Petroleum Corporation’s 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. The net profits interest
will terminate when 9.11 MMBOE have been produced and sold from the
underlying properties (which amount is equivalent to 8.20 MMBOE
attributable to the net profits interest), and the Trust will soon
thereafter wind up its affairs and terminate, after which it will
pay no further distributions.
As of September 30, 2012, on a cumulative accrual basis, 5.83
MMBOE (71%) of the Trust’s total 8.20 MMBOE have been produced and
sold. Based on the Trust’s reserve report for the underlying
properties as of December 31, 2011, the 9.11 MMBOE of reserves
(8.20 MMBOE to the 90% net profits interest) are projected to be
produced from the underlying properties by August 31, 2015, which
reflects expected year over year decline rates ranging from
approximately 8% to 9% between 2012 and 2015. However, the rate of
future production cannot be predicted with certainty, and 9.11
MMBOE (8.20 MMBOE to the 90% net profits interest) may be produced
before or after the currently projected date. In addition, cash
distributions to unitholders may decline at a faster rate than the
rate of production due to fixed and semi-variable costs
attributable to the underlying properties.
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. Other
important factors that could cause actual results to differ
materially include expenses of the Trust, 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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