HOUSTON, May 4, 2018 /PRNewswire/ -- Chesapeake Granite
Wash Trust (NYSE:CHKR) (the "Trust") today announced that its
common unit distribution for the quarter ended March 31, 2018 (which primarily relates to
production attributable to the Trust's royalty interests from
December 1, 2017 through February 28, 2018) will be $0.0469 per common unit. The distribution will be
paid on May 31, 2018 to common
unitholders of record at the close of business on May 21, 2018.
During the three-month production period ended February 28, 2018, sales volumes and realized
prices were both lower than initial Trust estimates.
The following table provides supporting documentation, as
provided by Chesapeake Energy Corporation ("Chesapeake") to the
Trust, for the calculation of distributable income available to
unitholders for the production period from December 1, 2017 through February 28, 2018.
|
Sales
volumes:
|
|
|
|
Oil (mbbl)
|
|
24
|
|
Natural gas
(mmcf)
|
|
608
|
|
Natural gas liquids
(mbbl)
|
|
63
|
|
Total oil equivalent volumes
(mboe)
|
|
189
|
|
|
|
|
|
Average price
received per production unit:(1)
|
|
|
|
Oil
|
|
$
|
59.96
|
|
Natural
gas
|
|
$
|
1.08
|
|
Natural gas
liquids
|
|
$
|
21.22
|
|
|
|
|
|
Distributable income
calculation (in thousands except per unit income):
|
|
|
|
Revenue less
production taxes(1)
|
|
$
|
3,154
|
|
Trust administrative
expenses
|
|
(961)
|
|
Distributable income
available to unitholders
|
|
$
|
2,193
|
|
Calculated
distributable income per unit(2)
|
|
$
|
0.0469
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes the
effect of certain marketing, gathering and transportation
deductions.
|
|
(2)
|
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 was formed by Chesapeake Energy Corporation in
June 2011 and 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:
Chesapeake Granite Wash Trust (NYSE:CHKR) is a
Delaware statutory trust formed by
Chesapeake to own certain royalty interests in oil, natural gas
liquids and natural gas wells in Washita
County, Oklahoma producing from the Colony Granite Wash play
within the broader Granite Wash formation of the Anadarko Basin. The common units do not
represent interests in and are not obligations of Chesapeake. The
common units are listed on the New York Stock Exchange under the
symbol CHKR. Further information is available at
www.chkgranitewashtrust.com where the Trust routinely posts
announcements, updates, investor information and news
releases.
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 from Chesapeake 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 expenses of
the Trust and reserves for anticipated future expenses. Neither
Chesapeake nor the Trustee 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,
2017, 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.
TRUSTEE CONTACT INFORMATION:
Bank of New York Mellon
Trust Company, N.A.
Sarah Newell
512-236-6555
sarah.newell@bnymellon.com
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SOURCE Chesapeake Granite Wash Trust