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Whiting USA Trust II (NYSE: WHZ) announced the first Trust distribution in 2013, which relates to net profits generated during the fourth quarterly payment period of 2012.
Unitholders of record on February 19, 2013 will receive a distribution amounting to $11,975,068 or $0.650819 per unit, which is payable on or before March 1, 2013.
Volumes, average sales prices and net profits for the quarterly payment period were:
Natural gas (Mcf)
Average sales prices:
Oil (per Bbl) (1)
Natural gas (per Mcf) (2)
Natural gas sales
Total gross proceeds
Lease operating expenses (3)
Percentage allocable to Trust’s Net Profits Interest
Total cash available for the Trust
Provision for estimated Trust expenses
Montana state income taxes withheld
Net cash proceeds available for distribution
Trust units outstanding
Cash distribution per Trust unit
The price of crude oil realized by the Trust’s underlying properties during the last nine months of 2012 has been lower than was anticipated at the time of the Trust’s initial public offering in March 2012.
The average sales price of natural gas for the gas production months within the distribution period exceeded the average NYMEX gas prices for those same months within the period due to the “liquids rich” content of a portion of the natural gas volumes produced by the underlying properties.
The Trust’s underlying properties experienced increases in lease operating expenses during 2012 related to a higher level of workover activity, increased ad valorem taxes and increases in the cost of oil field goods and services associated with higher demand in the industry.
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 properties located primarily in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent regions of the United States. The net profits interest will terminate on the later to occur of (1) December 31, 2021, or (2) the time when 11.79 MMBOE have been produced from the underlying properties and sold (which amount is equivalent to 10.61 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.