SANDRIDGE MISSISSIPPIAN TRUST I (NYSE: SDT) today announced a quarterly
distribution for the three-month period ended September 30, 2014 (which
primarily relates to production attributable to the Trust’s interests
from June 1, 2014 through August 31, 2014) of $6.9 million, or $0.2469
per unit. The Trust makes distributions on a quarterly basis
approximately 60 days after the end of each quarter. The distribution is
expected to occur on or before November 28, 2014 to holders of record as
of the close of business on November 14, 2014.
During the three-month production period ended August 31, 2014, total
sales volumes were lower than initial Trust estimates. During the
period, NGL sales volumes were higher than in previous periods as a
result of a contractual change to the gathering agreement. 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
lower production resulted in quarterly income available for distribution
of $0.2469 per unit.
The Trust owns royalty interests in oil and natural gas properties in
the Mississippian formation in Alfalfa, Garfield, Grant and Woods
counties in Oklahoma 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 and natural gas 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)
|
|
|
44
|
|
NGLs (MBbl)
|
|
|
32
|
|
Gas (MMcf)
|
|
|
644
|
|
Combined (MBoe)
|
|
|
183
|
|
Average Price
|
|
|
Oil (per Bbl)
|
|
$
|
99.03
|
|
NGLs (per Bbl)
|
|
$
|
35.13
|
|
Gas (per Mcf)
|
|
$
|
3.59
|
|
Average Price - including impact of derivative settlements and
post-production expenses
|
|
|
Oil (per Bbl)
|
|
$
|
98.32
|
|
NGLs (per Bbl)
|
|
$
|
35.13
|
|
Gas (per Mcf)
|
|
$
|
3.14
|
|
Revenues
|
|
|
Royalty income
|
|
$
|
7,792
|
|
Derivative settlements
|
|
|
(11
|
)
|
Expenses
|
|
|
868
|
|
Distributable income available to unitholders
|
|
$
|
6,913
|
|
Distributable income per unit (28,000,000 units issued and
outstanding)
|
|
$
|
0.2469
|
|
|
|
|
|
|
In addition to wells that were producing at the effective date of the
assignment of the royalty interests to the Trust, SandRidge drilled, or
caused to be drilled, 124 development wells within an area of mutual
interest between January 1, 2011 and April 2013, when SandRidge
fulfilled its drilling obligation to the Trust. No new Trust Development
Wells have been drilled since April 2013.
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 I 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 I is subject to the
risks described in the Trust’s Annual Report on Form 10-K for the year
ended December 31, 2013, 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.
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