SANDRIDGE MISSISSIPPIAN TRUST I (NYSE: SDT) today announced a quarterly
distribution for the three-month period ended December 31, 2015 (which
primarily relates to production attributable to the Trust’s interests
from September 1, 2015 through November 30, 2015) of $8.7 million, or
$0.3110 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 February 26, 2016 to
holders of record as of the close of business on February 12, 2016.
During the three-month production period ended November 30, 2015, sales
volumes were lower than the previous period and oil, natural gas and
natural gas liquids (“NGL”) experienced continued depressed pricing. Net
cash settlements received under the derivatives agreement for the period
were approximately $6.9 million. This increased the average price
received per barrel of oil, including the effects of the derivatives and
post-production expenses, from $42.36 to $294.39, due 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, and
increased the quarterly income available for distribution to $0.3110 per
unit. 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)
|
|
|
|
26
|
NGLs (MBbl)
|
|
|
|
28
|
Gas (MMcf)
|
|
|
|
516
|
Combined (MBoe)
|
|
|
|
140
|
Average Price
|
|
|
|
Oil (per Bbl)
|
|
|
$
|
42.36
|
NGLs (per Bbl)
|
|
|
$
|
13.25
|
Gas (per Mcf)
|
|
|
$
|
2.00
|
Average Price - including impact of derivative settlements and
post-production expenses
|
|
|
|
Oil (per Bbl)
|
|
|
$
|
294.39
|
NGLs (per Bbl)
|
|
|
$
|
13.25
|
Gas (per Mcf)
|
|
|
$
|
2.26
|
Revenues
|
|
|
|
Royalty income
|
|
|
$
|
2,504
|
Derivative settlements
|
|
|
|
6,937
|
Expenses
|
|
|
|
732
|
Distributable income available to unitholders
|
|
|
$
|
8,709
|
Distributable income per unit (28,000,000 units issued and
outstanding)
|
|
|
$
|
0.3110
|
|
|
|
|
|
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160128005131/en/
Copyright Business Wire 2016
Source: Business Wire
(January 28, 2016 - 4:15 PM EST)
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