SandRidge Permian Trust announces quarterly distribution and distribution of net proceeds from asset sale in August 2021

0


[ad_1]

HOUSTON, July 30, 2021– (COMMERCIAL THREAD) – SANDRIDGE PERMIAN TRUST (OTC Pink: PERS) today announced a distribution of approximately $ 9.5 million, or $ 0.182 per unit. This amount reflects (a) the distribution for the three-month period ended June 30, 2021 (which relates primarily to production attributable to the Trust’s royalty interest from March 1, 2021 to May 31, 2021) of approximately 0.4 million dollars, (b) approximately $ 3.5 million (reflecting payments to the trust of approximately $ 0.3 million and approximately $ 3.2 million) representing full payment of the remaining unpaid portion the amount Avalon Energy, LLC (“Avalon”) owes to the Trust for the three-month period ended March 31, 2020 (which primarily related to production attributable to the Trust’s royalty interests from December 1, 2019 to December 29, 2020). February 2020 (the “May 2020 Quarterly Payment”), including accrued interest, and (c) the approximately $ 5.6 million of net proceeds received from the sale of the Trust’s assets to Montare Resources I, LLC ( “Montare”) on June 18, 2021. The distribution is expected to take place at the latest. s by August 27, 2021 to holders registered at the close of business on August 13, 2021.

Since the Trust has sold its remaining assets to Montare effective July 1, 2021, the Trust will not receive any other income from oil and gas production. Any cash reserves remaining after the distribution no later than August 27, 2021 will be used by the Trustee to complete the trust liquidation process, which includes preparing and filing a Form 10-Q for the period ended August 30, 2021. June 2021, filing a Form 15 with the Securities and Exchange Commission (“SEC”) to deregister the Trust as a reporting company, notification to the OTC Markets Group of the delisting of the Trust from the SEC and a notice to stop trading in the Common Units of the Trust, and the preparation and issuance of Forms K-1 to all holders of Common Units. If any cash reserves remain after payment of the estimated remaining expenses and obligations of the Trust, the Trustee will make a final distribution to Unitholders of such amount. The Trust will continue to exist until the liquidation process is complete, after which the Trustee will file a Certificate of Cancellation with the Secretary of State for the State of Delaware.

The Trust held royalty interests in oil and gas properties and was entitled to receive the proceeds from the sale of production attributable to royalty interest until June 1, 2021. As described in documents filed by the Trust with the SEC, the amount of quarterly distributions have fluctuated from quarter to quarter, depending on the proceeds received by the Trust as a result of actual production volumes, prices of oil, natural gas and natural gas liquids, and the amount and timing of the Trust’s administration fees, among other factors. All Trust Unitholders share the distributions on a pro rata basis.

During the three-month production period ended May 31, 2021, the combined sales volumes were slightly higher than the prior period. In addition, there was a significant increase in the average price of oil during the production period compared to the three-month production period ended February 28, 2021.

The volumes, average prices and distributable income available to unitholders for the three-month period ended June 30, 2021 are presented below (in thousands of dollars, except average and per unit prices):

Sales volume

Oil (MBbl)

12

Natural gas liquids (MBbl)

1

Natural gas (MMcf)

4

Combined (MBoe)

14

Average price

Oil (per barrel)

$

61.48

Natural gas liquids (per barrel)

$

27.35

Natural gas (per Mpi)

$

2.17

Natural gas (per Mpi) including the impact of post-production expenses

$

1.91

Royalty income

$

797

Expenses

(417)

Distributable income

380

Company distribution amount (1)

368

May 2020 Quarterly Payment Payment (2)

3 160

Proceeds from the sale of the Trust’s assets

6000

Costs of selling the Trust’s assets

(375)

Distributable profit available to unitholders

$

9,533

Distributable profit per unit (52,500,000 units issued and outstanding)

$

0.182

(1) Represents the deposit by Avalon’s unit of the May 2021 distribution to unitholders of the Trust, pursuant to the redemption agreement dated March 1, 2021 between Avalon and the Trust.

(2) Represents payment by Montare of the remaining unpaid portion of the missed quarterly payment of May 2020, together with accrued interest, as shown in the current Trust Report on Form 8-K dated June 18, 2021.

In accordance with Section 1446 of the Internal Revenue Code, withholding tax on income actually related to a trade or business in the United States attributed to non-US persons (“ECI”) must be carried out at the marginal rate. The highest. Under section 1441, withholding tax on fixed, determinable, annual and periodic income from US sources allocated to non-US persons must be made at a rate of 30%, unless the rate is reduced by treaty. This is intended to be qualified notice of SandRidge Permian Trust to applicants and brokers, in accordance with section 1.1446-4 (b) of the Treasury Regulations. Nominees and brokers must withhold at the highest marginal rate on distribution to non-US persons. The Tax Cuts and Jobs Act (the “TCJA”) enacted in December 2017 treats the gain of a non-US holder on the sale of units of the Trust as an ECI to the extent that such holder would have had an ECI if the Trust had sold all of its assets at fair market value on the date of sale of those trust units. The TCJA also requires that a transferee of trust units withhold 10% of the amount realized on the sale or exchange of such units (generally, the purchase price), unless the transferor certifies that he is not a non-resident foreign individual or a foreign company or another exception is available. In accordance with the final version of the Treasury Regulations published on October 7, 2020, this new withholding obligation will become applicable to transfers of shares in listed partnerships such as the Fiducie (which is classified as a partnership for the purposes of the federal and state income tax) occurring on or after January 1, 2022.

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 fact, are “forward-looking statements” for the purposes of this provision. These forward-looking statements include the amount and date of any anticipated distribution to Unitholders; the amount and date of any future distributions to unitholders of the Trust; expectations regarding the timing of the liquidation of the Trust, including the cancellation of units of the Trust; and statements regarding the possibility of future distributions to Unitholders during the Liquidation Period. Statements made in this press release are qualified by the caveats made above. Neither Avalon nor the Trustee intends and assumes no obligation to update the statements included in this press 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, 2020, and in all of its other documents filed with the SEC. The annual, quarterly and other filed reports of the Trust are or will be available on the Internet on the SEC’s website at http://www.sec.gov.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20210730005532/en/

Contacts

SandRidge Permian Trust
The Bank of New York Mellon Trust Company, NA, as Trustee
Sarah newell
1 (512) 236-6555

[ad_2]

Share.

Leave A Reply