Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced a cash
distribution to the holders of its units of beneficial interest of
$0.037109 per unit, payable on April 14, 2015 to unitholders of record
on March 31, 2015. The distribution primarily represents oil production
during the month of December 2014 and natural gas production during
November 2014.
The following table displays underlying oil and natural gas sales
volumes and average prices attributable to the current and prior month
net profits interest calculations.
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Underlying Sales Volumes
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Average Price
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Oil (Bbls)
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Natural Gas (Mcf)
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Oil (per Bbl)
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Natural Gas (per Mcf)
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Current Month
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79,802
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318,830
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$
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57.49
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$
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3.54
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Prior Month
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78,027
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432,627
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$
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69.92
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$
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3.94
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Oil cash receipts for the properties underlying the Trust totaled $4.6
million for the current month, a decrease of $0.9 million from the prior
month calculation. The decrease was due to a 22 percent decline in NYMEX
oil prices, partially offset by increased sales volumes resulting from
one more production day in December.
Natural gas receipts decreased $0.6 million from the prior month,
totaling $1.1 million, primarily due to decreased sales volumes from one
operator in the Elm Grove field of the East Texas/North Louisiana region
and reduced sales price realizations. In January 2015, Enduro received
notice from one of its operators that the operator intended to charge
the working interest owners their proportionate share of unused firm
capacity reservation fees since January 2012. The operator plans to
recoup these fees in check remittances in 2015 and continue to charge
the related monthly fees going forward. In January 2015, the operator
withheld payment in partial settlement of approximately $400,000 in firm
capacity reservation fees related to the Underlying Properties, and as a
result, the current month distribution does not include any revenues or
volumes from the associated wells, causing a decline from the prior
month. In the prior month distribution, these wells averaged daily
natural gas sales of approximately 3,250 Mcf/D. Enduro Resource
Partners, the sponsor of the Trust, does not believe these fees are
appropriate and is questioning the exact amount of the fees that will be
withheld and whether such fees can be withheld from working interest
owners and retroactively recouped.
The current distribution includes receipts from 19 of 20 Rocker B wells
producing through December 2014. In total, the 19 Rocker B wells
contributed $0.4 million in oil cash receipts for the current
distribution period. Total average daily oil sales volumes for the
current distribution period for the properties underlying the Trust were
approximately 2,570 Bbls/D, of which 235 Bbls/D are attributable to the
Rocker B wells.
Capital expenditures included in the current month distribution totaled
$0.7 million and relate to expenses incurred during January 2015.
Lost Tank Field Update
The Lost Tank 4 Federal 23 has been completed and is currently
producing; however, at this time, the well has not been producing for a
sufficient amount of time to provide a production rate.
2014 Tax Information
Enduro Royalty Trust’s 2014 tax information booklet is complete and
available on the Trust’s website.
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, 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 and expected expenses, including capital expenditures.
The anticipated distribution is based, in large 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. The amount of
such cash received or expected to be received is significantly affected
by prevailing commodity prices, which have dropped considerably over the
past several months and remain highly volatile. Significant decreases in
commodity prices could result in less cash available for distribution in
future periods. Other important factors that could cause actual results
to differ materially include expenses 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. 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 Annual Report
on Form 10-K for the year ended December 31, 2014, filed with the SEC on
March 12, 2015. 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 2015