Chesapeake Granite Wash Trust (NYSE:CHKR) (the “Trust”) today announced its common unit distribution for the quarter ended December 31, 2012 (which primarily relates to production attributable to the Trust’s royalty interests from September 1, 2012 through November 30, 2012) will be $0.6700 per common unit. The Trust will also pay a distribution of $0.3772 per subordinated unit for the quarter. The distributions will be paid on March 1, 2013 to all common and subordinated unitholders of record at the close of business on February 19, 2013.
During the three-month production period ended November 30, 2012, total sales volumes and realized oil, natural gas liquids and natural gas prices were lower than initial Trust estimates. This resulted in quarterly income available for distribution of $0.5968 per unit, which is $0.0732 below the subordination threshold. As a result, the distribution per common unit is the subordination threshold of $0.6700 for the quarter.
The following table provides sales volumes, realized prices and revenue attributable to the Trust’s royalty interests, expenses of the Trust and distributable income available to unitholders for the production period from September 1, 2012 to November 30, 2012.
|Natural gas liquids (mbbl)||329|
|Natural gas (mmcf)||3,060|
|Total oil equivalent volumes (mboe)||990|
|Average price received per production unit: (1)|
|Natural gas liquids||$||31.92|
Distributable income calculation (in thousands except per unit income):
|Revenue less production taxes (1)||$||28,875|
|Derivative settlement loss||(609||)|
|Distributable income available to unitholders||$||27,900|
|Calculated distributable income per unit (2)||$||0.5968|
|Distributable income per common unit (3)||$||0.6700|
|Distributable income per subordinated unit (4)||$||0.3772|
(1) Includes the effect of certain marketing, gathering and transportation deductions. (2) Based on 46,750,000 units issued and outstanding, consisting of 35,062,500 common units and 11,687,500 subordinated units. (3) Equal to subordination threshold of $0.6700 per common unit. (4) All subordinated shares are owned by Chesapeake Energy Corporation.Due to the timing of the payment of production proceeds to the Trust, quarterly distributions generally 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.