Chesapeake Granite Wash Trust Announces Distribution of $0.0202 Per Common Unit
02 Agosto 2024 - 3:15PM
Business Wire
Chesapeake Granite Wash Trust (OTC Markets Group, Inc.:CHKR)
(the “Trust”) today announced that its common unit distribution for
the quarter ended June 30, 2024 (which primarily relates to
production attributable to the Trust’s royalty interests from March
1, 2024 through May 31, 2024) will be $0.0202 per common unit. The
distribution will be paid on August 29, 2024 to common unitholders
of record at the close of business on August 19, 2024.
The following table provides supporting documentation for the
calculation of distributable income available to unitholders for
the production period from March 1, 2024 through May 31, 2024.
Sales volumes:
Oil (mbbl)
11
Natural gas (mmcf)
253
Natural gas liquids (mbbl)
21
Total oil equivalent volumes (mboe)
74
Average price received per production
unit:(1)
Oil
$
78.75
Natural gas
$
1.04
Natural gas liquids
$
29.71
Distributable income calculation (in
thousands except per unit income):
Revenue less production taxes(1)
$
1,623
Trust administrative expenses
(578)
Cash withheld to increase cash
reserves(2)
(99)
Distributable income available to
unitholders
$
946
Calculated distributable income per
unit(3)
$
0.0202
(1)
Includes the effect of certain marketing,
gathering and transportation deductions.
(2)
The Trustee may increase or decrease the
targeted amount of the cash reserve at any time, and may increase
or decrease the rate at which it is withholding funds to build the
cash reserve at any time, without advance notice to the
unitholders. Without limiting the foregoing, the Trustee reviewed
the adequacy and sufficiency of the existing cash reserve in 2021
and determined to withhold funds otherwise available for
distribution to unitholders each quarter to increase existing cash
reserves by a total of approximately $3,200,000 over a period of
several quarters, commencing with the distribution to unitholders
for the fourth quarter 2021 (payable in 2022). As of June 30, 2024
$1,858,328 has been so withheld to increase cash reserves. Cash
held in reserve will be invested as required by the Trust
Agreement. Any cash reserved in excess of the amount necessary to
pay or provide for the payment of future known, anticipated or
contingent expenses or liabilities eventually will be distributed
to unitholders, together with interest earned on the funds.
(3)
Based on 46,750,000 common units issued
and outstanding.
Due to the timing of the payment of production proceeds to the
Trust, quarterly distributions generally include royalties
attributable to sales of oil, natural gas liquids and natural gas
for three months, including the first two months of the quarter
just ended and the last month of the prior quarter.
The Trust owns royalty interests in certain oil and natural gas
properties in the Colony Granite Wash play in Washita County,
Oklahoma. The Trust 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 Trust revenues and the quarterly
distributions to Trust unitholders will fluctuate from quarter to
quarter, depending on the sales volume of oil, natural gas liquids
and natural gas attributable to the Trust’s royalty interests and
the prices received for such sales and the amount of the Trust’s
administrative expenses, among other factors.
For additional information regarding the Trust and its results
of operations and financial condition, please refer to the Trust’s
SEC filings.
ABOUT CHESAPEAKE GRANITE WASH TRUST:
Pursuant to IRC Section 1446, withholding tax on income
effectively connected to a U.S. 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 U.S. sources allocated to foreign partners
should be made at 30% of gross income unless the rate is reduced by
treaty. This release is intended to be a qualified notice to
nominees and brokers as provided for under Treasury Regulation
Section 1.1446-4(b) by the Trust, and while specific relief is not
specified for Section 1441 income, this disclosure is intended to
suffice. For distributions made to foreign partners, nominees and
brokers should withhold at the highest effective tax rate.
This news release contains statements that are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements
contained in this news release, other than statements of historical
facts, are “forward-looking statements” for purposes of these
provisions. The anticipated distribution discussed herein is based,
in part, on the amount of cash received or expected to be received
by the Trust with respect to the relevant quarterly 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 the conflicts in
Ukraine and Israel and related economic turmoil, expenses of the
Trust and reserves for anticipated future expenses. The Trustee
neither intends and neither assumes any obligation, to update any
of the statements included in this news release. An investment in
common units issued by the Trust is subject to the risks described
in the Trust’s Annual Report on Form 10-K for the year ended
December 31, 2023, as well as other risks identified in the Trust’s
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
filed with the SEC. The Trust’s annual, quarterly and other filed
reports are or will be available at the SEC’s website at
www.sec.gov. The Trust does not intend, and assumes no obligations,
to update any of the statements included in this news release.
Further information is available at www.chkgranitewashtrust.com
where the Trust routinely posts announcements, updates, investor
information and news releases.
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Sarah Newell sarah.newell@bnymellon.com 512-236-6555