Chesapeake Granite Wash Trust (NYSE: CHKR) (the “Trust”) today announced a quarterly distribution for the three-month period ended March 31, 2012 (which primarily relates to production attributable to the Trust’s royalty interests from December 1, 2011 through February 29, 2012) of $0.6588 per unit. The distribution will be paid on May 31, 2012 to unitholders of record at the close of business on May 21, 2012.
During the three-month production period ended February 29, 2012, sales volumes and realized unhedged oil prices were higher than estimated. During the same period, realized unhedged natural gas and natural gas liquids prices were lower than estimated. This resulted in a distribution per unit approximately 11% below the target distribution of $0.74 per unit as described in the Trust’s filings with the Securities and Exchange Commission (the “SEC”). The following table provides sales volumes, realized prices and revenue attributable to the Trust’s royalty interests, expenses of the Trust and distributable income available to unitholders for the production period (dollars in thousands, except per unit):
|Natural gas liquids (mbbl)||315|
|Natural gas (mmcf)||2,921|
|Total oil equivalent volumes (mboe)||984|
|Average price received per production unit (1)|
|Natural gas liquids||$||36.56|
Distributable income calculation (in thousands except per unit income)
|Revenue less production taxes (1)||$||33,757|
|Derivative settlement loss||($2,567||)|
|Distributable income available to unitholders||$||30,801|
|Distributable income per unit (46,750,000 units issued and outstanding)||$||0.6588|
(1) Includes the effect of certain marketing, gathering and transportation deductions.
Due to the timing of the payment of production proceeds to the Trust, quarterly distributions will include royalties attributable to sales of oil, natural gas liquids and natural gas for three months, including the first two months of the quarter just ended and the last month of the prior quarter.
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