Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced its
monthly cash distribution to be paid in January 2015, reported results
from recently completed wells in the Permian Basin Wolfcamp play and
announced its 2015 capital program.
Monthly Cash Distribution
A cash distribution of $0.065822 per unit will be paid on January 15,
2015 to the Trust’s unitholders of record on December 31, 2014. The
distribution primarily represents oil production during the month of
September 2014 and natural gas production during August 2014.
The following table displays underlying oil and natural gas sales
volumes and average prices attributable to the current and prior month
net profits interest calculations.
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Underlying Sales Volumes
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Average Price
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Oil
(Bbls)
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Natural Gas
(Mcf)
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Oil
(per Bbl)
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Natural Gas
(per Mcf)
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Current Month
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82,474
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432,652
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$
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84.91
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$
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4.16
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Prior Month
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76,512
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418,408
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$
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87.17
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$
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4.39
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Oil cash receipts for the properties underlying the Trust totaled $7.0
million for the current month, an increase of $0.3 million from the
prior month calculation. The increase was due to the receipt of the
first revenue receipts on five Rocker B wells, partially offset by a
three percent decline in NYMEX oil prices. Natural gas receipts were
consistent with the prior month, totaling $1.8 million.
The current month distribution includes receipts from 13 Rocker B wells
producing through September 2014. In total, the 13 Rocker B wells
contributed $1.1 million of oil cash receipts for the current
distribution period, including approximately $0.6 million from the first
revenue receipts for the Rocker B 43H, 44H, 45H, 47H, and 48H. These
wells came online in July and early August, and the first payment was
received in October for oil production from July, August, and September
and gas production from July and August. Total average daily oil sales
volumes for the current distribution period for the properties
underlying the Trust were approximately 2,750 Bbls/D, of which 400
Bbls/D are attributable to the Rocker B wells, including 135 Bbls/D of
prior month volumes for the five wells noted previously.
Capital expenditures included in the current month distribution totaled
$2.3 million and relate to expenses incurred during October 2014. Of
this amount, approximately $1.5 million of capital expenditures are
related to the Wolfcamp activity in the Midland Basin. Through October,
capital incurred for projects in the Wolfcamp Rocker B program totaled
$21.1 million, or $16.9 million net to the Trust’s 80% net profits
interest.
2014 Production Results and Activity Update
Permian Basin Wolfcamp – Rocker B Program
To date, Enduro Resource Partners LLC (“Enduro”) has received and
participated in 20 gross well proposals received from Pioneer Natural
Resources, all of which are currently producing.
The following table displays the 24-hour peak gross flowback rate and
30-day IP rate, where such information is available, for those wells for
which rates have not been previously announced:
Well Name
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Enduro
Working
Interest
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Enduro
Net Revenue
Interest
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First
Production
Date
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24-Hour IP
Rate
(BOE/D)
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30-Day
IP Rate
(BOE/D)
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Rocker B 51H
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12.50%
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9.375%
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10/16/2014
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682
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421
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Rocker B 52H
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12.50%
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9.375%
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10/13/2014
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949
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671
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Rocker B 53H
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12.50%
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9.375%
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10/12/2014
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1,025
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612
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Rocker B 54H
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12.50%
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9.375%
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10/12/2014
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1,127
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781
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Rocker B 60H
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12.50%
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9.375%
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12/04/2014
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Not Available
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Not Available
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Rocker B 61H
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12.50%
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9.375%
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12/15/2014
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Not Available
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Not Available
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Rocker B 62H
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12.50%
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9.375%
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12/14/2014
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Not Available
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Not Available
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Lost Tank Field
In late 2012, Enduro elected to participate in two Permian oil wells
drilled by Occidental Petroleum in the Lost Tank field in southeastern
New Mexico, in which Enduro owns a 50% working interest. The wells were
spud in December 2012; however, due to delays including takeaway
capacity for associated gas volumes and completion delays on one well,
the wells are not currently producing. The first well which was
completed, the Lost Tank 4 Federal 22, experienced delays due to a stuck
packer in the well, and at this time, Occidental Petroleum plans to
clean out the well with coil tubing and produce through the packer with
an estimated first sales date at the beginning of February 2015. The
second well, the Lost Tank 4 Federal 23, will be completed this month
and is expected to be flowing to sales in February 2015 as well. Through
October 2014, capital incurred for these two wells has totaled $9.2
million, or $7.4 million net to the Trust’s 80% net profits interest.
Additional completion capital of $0.8 million is anticipated in early
2015.
2015 Capital Program
In 2015, total capital expenditures included in announced distributions
are expected to range from $12 to $16 million attributable to the
properties in which the Trust owns a net profits interest, or $10 to $13
million net to the Trust’s 80% net profits interest. The 2015 capital
program will continue to focus primarily on Permian Basin projects,
including legacy waterfloods, infill drilling, and Wolfcamp Permian
Basin oil development projects in the Midland Basin.
As noted above, to date Enduro has participated in 20 gross wells in the
Rocker B Permian development program with Pioneer Natural Resources. Of
the wells drilled, the primary reservoir targeted has been the Wolfcamp
B and results have been best for those wells drilled in the B2
reservoir. In the current commodity environment, Enduro is evaluating
the total capital to be committed to this program and Enduro’s
participation in proposed Wolfcamp wells. Enduro anticipates capital for
the Trust in 2015 to be considerably less than 2014 at current commodity
prices.
About Enduro Royalty Trust
Enduro Royalty Trust is a Delaware statutory trust formed by Enduro
Resource Partners to own a net profits interest representing the right
to receive 80% of the net profits from the sale of oil and natural gas
production from certain of Enduro Resource Partners’ properties in the
states of Texas, Louisiana and New Mexico. As described in the Trust’s
filings with the Securities and Exchange Commission, the amount of the
periodic distributions is expected to fluctuate, depending on the
proceeds received by the Trust as a result of actual production volumes,
oil and gas prices and the amount and timing of capital expenditures and
the Trust’s administrative expenses, among other factors. Future
distributions are expected to be made on a monthly basis. For additional
information on the Trust, please visit www.enduroroyaltytrust.com.
Forward-Looking Statements and Cautionary Statements
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 unitholders, estimates of capital expenditures and drilling activity,
and expectations regarding future production. The anticipated
distribution is based, in part, on the amount of cash received or
expected to be received by the Trust from Enduro Resource Partners 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 from the estimates and expectations included in this press
release include expenses, capital investments, timing of production from
new wells, production from the underlying properties of the Trust and
reserves for anticipated future expenses. Initial production rates may
not be indicative of future production rates and are not indicative of
the amounts of oil and gas that a well may produce. Statements made in
this press release are qualified by the cautionary statements made in
this press release and by all of the cautionary statements and risks
described in the Trust’s Annual Report on Form 10-K for the year ended
December 31, 2013, filed with the SEC on March 11, 2014. All information
in this release has been provided by Enduro Resource Partners. Neither
Enduro Resource Partners nor the Trustee intends, and neither assumes
any obligation, to update any of the statements included in this press
release. An investment in units issued by Enduro Royalty Trust is
subject to the risks described in the Trust’s filings with the SEC,
including the risks described in the Trust’s 2013 Form 10-K. The Trust’s
quarterly and other filed reports are or will be available over the
Internet at the SEC’s website at http://www.sec.gov.
Copyright Business Wire 2014