Thank you for reminding me I've been of help to you in the past. I appreciate knowing that as it's the basis for my being on these boards. That said, I'd be getting out of Whiting immediately!
As of June 30, 2015, on a cumulative accrual basis, 5.19 MMBOE (49%) of the Trust's total 10.61 MMBOE have been produced and sold. Based on the Trust's reserve report for the underlying properties as of December 31, 2014, the Trust's 10.61 MMBOE are projected to be produced from the underlying properties prior to December 31, 2021, and the net profits interest would therefore terminate on December 31, 2021. Additionally, the year-end reserve report reflects an expected annualized decline rate of approximately 8.0% between 2015 and 2021. However, 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, or if expected future development is delayed, reduced or cancelled.
This is a terrible dead-end and not at all suitable for investing in my opinion. I may not know you intimately or anything of your investment goals but I can say this with conviction This Whiting investment of your is dying a rapid death. Cash distributions are expected to decline at more than an 8% annual rate.
I was in WHX maybe a half dozen years ago. I got out perhaps three years back, realizing it was going to cost me my original seed money if I stayed in. This is a trust set to die due to rapid decline of assets. There are other opportunities as you know for you've got three of them and all three are performing with consistency. WHX cannot reverse their negative bias as it's not possible. Why are you clinging to the stench of death?
I'd be getting my last dollar out of it and then I'd wait for a major swoon in stocks that I follow regularly and know.
I hope I haven't overstepped your boundaries, I just want to help you avoid a disaster.
