DALLAS, Jan. 23, 2015 /PRNewswire/ -- The
Cushing® Royalty & Income Fund (NYSE: SRF) announced
today that the Fund's Board of Trustees has declared a quarterly
distribution for the fiscal quarter ending February 28, 2015 of $0.118 per common share. The Fund's
distribution will be payable on March 16,
2015 to shareholders of record on March 11, 2015. The ex-date for the Fund's
distribution is March 9, 2015.
The Fund's current quarterly distribution represents an annualized
distribution rate of 7.48%, based on market price and 7.91% based
on net asset value, each as of January 21,
2015.
"After careful consideration, the Fund's adviser, Cushing Asset
Management, LP ("Cushing")
proposed, and the Board of Trustees approved, a reduction in the
Fund's distribution to reflect, in part, reduced earnings from the
Fund's investments in certain upstream master limited partnerships
(MLPs) that were negatively impacted by the recent substantial
downturn in crude oil and natural gas prices as well as the impact
of leverage maintained by the Fund," said Jerry Swank, Chairman and Chief Executive
Officer of the Fund and Managing Partner of Cushing.
In addition, the Fund announced that, effective immediately, the
frequency of the Fund's distributions to shareholders will be
changed from quarterly to monthly. The Fund's Board of
Trustees has declared a distribution for March 2015 of $0.039 per common share. The Fund's
distribution will be payable on March 31,
2015 to shareholders of record on March 18, 2015. The ex-date for the Fund's
distribution is March 16, 2015.
It is anticipated but not certain that approximately 100% of the
Fund's distributions will be treated as a return of capital. The
final determination of such amounts will be made and reported to
shareholders in early 2016, after the end of the calendar year when
the Fund determines its earnings and profits for the year. The
final tax status of the distributions may differ substantially from
this preliminary information.
The Fund is a non-diversified, closed-end management investment
company with an investment objective of seeking a high total return
with an emphasis on current income. The Fund seeks to provide
shareholders with a tax-efficient vehicle to invest in a portfolio
of energy-related U.S. royalty trusts, exploration and production
master limited partnerships (E&P MLPs) and Canadian royalty
trusts and exploration and production companies and other energy
assets. The Fund is traded on the New York Stock Exchange
under the symbol "SRF."
The Fund is managed by Cushing® Asset Management, LP
("Cushing"). No assurance can be
given that the Fund's investment objective will be achieved.
Cushing will host a live
webcast on Tuesday, January 27, 2015
at 3:00 p.m. Central Time to discuss
current energy industry market conditions and recent Fund
performance. Those interested in viewing the webcast and
participating in the question and answer session should register
at: http://www.cushingwebcast012715.com. An online
replay will be available following the webcast.
ABOUT CUSHING® ASSET
MANAGEMENT, LP
Cushing, a subsidiary of Swank
Capital, is an SEC-registered investment adviser headquartered in
Dallas, Texas. Cushing serves as investment adviser to
affiliated funds and managed accounts which invest primarily in
securities of MLPs and other natural resource companies. As
of December 31, 2014, Cushing had approximately $4.6 billion of assets under management in
closed-end funds, mutual funds, privately offered funds and
separately managed accounts.
IMPORTANT INFORMATION
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Although the Funds and Cushing
believe that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
Actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the company's reports that
are filed with the Securities and Exchange Commission. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Other than as
required by law, the Funds and Cushing do not assume a duty to update this
forward-looking statement.
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SOURCE Cushing Asset Management, LP