Whiting USA Trust I


Mike Ulrich
The Bank of New York Mellon Trust Company, N.A.

Corporate Trust

919 Congress Ave, Suite 500

Austin, TX 78701

Phone: 512-236-6599

Whiting USA Trust I Announces Trust Quarterly Distribution

Thursday, November 7, 2013 3:30 pm CST



Public Company Information:


AUSTIN, Texas--(BUSINESS WIRE)--Whiting USA Trust I (NYSE: WHX) announced the fourth Trust distribution in 2013, which relates to net profits generated during the third quarterly payment period of 2013.

Unitholders of record on November 19, 2013 will receive a distribution of $0.592105 per unit, which is payable on or before November 29, 2013.

Volumes, average sales prices and net profits for the quarterly payment period were:

Sales volumes:    
Oil (Bbl)(1) 178,020
Natural gas (Mcf)   661,928  
Total (BOE) 288,341
Average sales prices:
Oil (per Bbl) $ 89.94
Natural gas (per Mcf) $ 3.71
Gross proceeds:
Oil sales(1) $ 16,010,367
Natural gas sales   2,456,151  
Total gross proceeds $ 18,466,518  
Lease operating expenses $ 7,845,256
Production taxes 1,272,623
Realized gains on hedging settlements(2)   -  
Total costs $ 9,117,879  
Net profits $ 9,348,639
Percentage allocable to Trust’s Net Profits Interest   90 %
Total cash available for the Trust $ 8,413,775
Provision for estimated Trust expenses (140,000 )
Montana state income taxes withheld   (64,891 )
Net cash proceeds available for distribution $ 8,208,884
Trust units outstanding   13,863,889  
Cash distribution per Trust unit $ 0.592105  
(1) Oil includes natural gas liquids.
(2) All costless collar hedge contracts terminated as of December 31, 2012 (which hedging effects extended through the quarterly payment period covered by the February 2013 distribution to unitholders) and no additional hedges are allowed to be placed on the Trust assets. Consequently, for all distributions after February 2013, there will be no cash settlement gains or losses on commodity derivatives, and the Trust will have increased exposure to oil and natural gas price volatility.

The net profits interest represents the right to receive 90% of the net proceeds from Whiting Petroleum Corporation’s interests in certain existing oil and natural gas producing properties located primarily in the Rocky Mountains, Mid-Continent, Permian Basin and Gulf Coast regions of the United States. The net profits interest will terminate when 9.11 MMBOE have been produced and sold from the underlying properties (which amount is equivalent to 8.20 MMBOE attributable to the net profits interest), and the Trust will soon thereafter wind up its affairs and terminate, after which it will pay no further distributions. As described in the Trust’s public filings, since the assets of the Trust are depleting assets, a portion of each cash distribution paid on the Trust units should be considered by investors as a return of capital, with the remainder being considered as a return on investment, and consequently the market price of the Trust units will decline to zero at termination of the Trust.

As of September 30, 2013, on a cumulative accrual basis, 6.86 MMBOE (84%) of the Trust’s total 8.20 MMBOE have been produced and sold. Based on the Trust’s reserve report for the underlying properties as of December 31, 2012, the 9.11 MMBOE of reserves (8.20 MMBOE to the 90% net profits interest) are projected to be produced from the underlying properties by June 30, 2015, which reflects expected year over year decline rates ranging from approximately 9% to 13% between 2013 and 2015. However, the rate of future production cannot be predicted with certainty, and 9.11 MMBOE (8.20 MMBOE to the 90% net profits interest) may be produced before or after the currently projected date. In addition, cash distributions to unitholders may decline at a faster rate than the rate of production due to fixed and semi-variable costs attributable to the underlying properties.

This press release contains forward-looking statements, including all statements made in this press release other than statements of historical fact. No assurances can be given that such statements will prove to be correct. The announced distributable amount is based, in part, on the amount of cash received or expected to be received by the Trust from Whiting Petroleum Corporation pursuant to the net profits interest 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, fluctuations in oil and natural gas prices, uncertainty of estimates of oil and natural gas reserves and production, risks inherent in the operation and production of oil and gas properties, and future production costs. Statements made in this press release are qualified by the cautionary statements made in this press release. The Trustee does not intend, and assumes no obligation, to update any of the statements included in this press release.


Whiting USA Trust I
The Bank of New York Mellon Trust Company, N.A., as Trustee
Mary Jo Davis, 800-852-1422