SANDRIDGE MISSISSIPPIAN TRUST II (NYSE: SDR) today announced a quarterly
distribution for the three-month period ended June 30, 2016 (which
primarily relates to production attributable to the Trust’s interests
from March 1, 2016 through May 31, 2016) of $2.6 million, or $0.053 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 August 26, 2016 to holders of record as
of the close of business on August 12, 2016.
During the three-month production period ended May 31, 2016, total sales
volumes were slightly lower than the previous period. The decrease in
revenue compared to the previous period was partially due to the
expiration of the derivatives agreement that had provided the Trust with
the economic effect of certain oil derivative contracts entered into by
SandRidge Energy, Inc. with third parties for production through
December 31, 2015. The Trust no longer has the benefit of the derivative
contracts, and therefore the amount of future cash distributions will be
subject to unmitigated changes in oil and natural gas prices. The Trust
does not have the ability to enter into additional derivative contracts.
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, Grant, Kay, Noble and Woods
counties in northern Oklahoma and Barber, Comanche, Harper and Sumner
counties in southern Kansas 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, natural gas and
natural gas liquids (“NGL”) 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)
|
|
|
|
42
|
NGL (MBbl)
|
|
|
|
69
|
Natural Gas (MMcf)
|
|
|
|
867
|
Combined (MBoe)
|
|
|
|
255
|
Average Price
|
|
|
|
Oil (per Bbl)
|
|
|
$
|
37.01
|
NGL (per Bbl)
|
|
|
$
|
12.25
|
Natural Gas (per Mcf)
|
|
|
$
|
1.38
|
Natural Gas (per Mcf) including impact of post-production expenses
|
|
|
$
|
0.78
|
Revenues
|
|
|
$
|
3,586
|
Expenses
|
|
|
|
975
|
|
|
|
|
Distributable income available to unitholders
|
|
|
$
|
2,611
|
Distributable income per unit (49,725,000 units issued and
outstanding)
|
|
|
$
|
0.053
|
|
|
|
|
|
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 II 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 II is subject to
the risks described in the Trust’s Annual Report on Form 10-K for the
year ended December 31, 2015, 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/20160728006140/en/
Copyright Business Wire 2016
Source: Business Wire
(July 28, 2016 - 4:05 PM EDT)
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