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Whiting USA Trust II (NYSE: WHZ) announced the first Trust distribution in 2014, which relates to net profits generated during the fourth quarterly payment period of 2013.
Unitholders of record on February 19, 2014 will receive a distribution of $0.651431 per unit, which is payable on or before March 3, 2014.
Volumes, average sales prices and net profits for the quarterly payment period were:
Oil (Bbl) (1)
Natural gas (Mcf)
Average sales prices:
Oil (per Bbl) (1)
Natural gas (per Mcf) (2)
Oil sales (1)
Natural gas sales
Total gross proceeds
Lease operating expenses (3)
Realized (gains) losses on hedging settlements (4)
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
Oil includes natural gas liquids.
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 the fourth quarterly payment period of 2013 related to $1.5 million in ad valorem taxes that were paid in November and December of 2013. This timing of payment for the underlying properties’ ad valorem tax bills is consistent with when the prior year’s tax payments were made.
There were no realized gains or losses on hedge settlements during the fourth quarterly payment period of 2013. All costless collar hedge contracts terminate as of December 31, 2014. Consequently, for all distributions after the February 2015 distribution, there will be no further cash settlement gains or losses on commodity hedges, and the Trust will have increased exposure to oil and natural gas price volatility.
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.