Chesapeake Granite Wash Trust Announces Initial Two Month Distribution of $0.58 Per Unit
Chesapeake Granite Wash Trust (NYSE:CHKR) (the “Trust”) announced today that its distribution for the period from July 1, 2011 through August 31, 2011 will be $0.58 per unit, which will be paid on December 28, 2011 to unitholders of record at the close of business on December 15, 2011.
During the two-month period ended August 31, 2011, sales volumes and realized prices were higher than estimated in the Prospectus dated November 10, 2011 relating to the initial public offering of the common units of the Trust, resulting in an approximate 7% higher distribution per unit over the target distribution of $0.54 per unit listed in the Prospectus. The following table provides sales volumes, realized prices and revenue attributable to the Trust’s royalty interests, expenses of the Trust and distributable income available to unitholders for the period from July 1, 2011 to August 31, 2011.
Sales volumes
Oil (mbbl)
133
Natural gas liquids (mbbl)
225
Natural gas (mmcf)
2,172
Total oil equivalent volumes (mboe)
720
Average price received per production unit(1)
Oil
$
88.26
Natural gas liquids
$
46.65
Natural gas
$
3.26
Revenue less production taxes (in thousands)
$
28,428
Expenses (in thousands)
$
1,256
Distributable income available to unitholders (in thousands)
$
27,172
Distributable income per unit (46,750,000 units issued and outstanding)
$
0.58
(1) Includes the effect of certain marketing, gathering and transportation deductions.
Due to the timing of the payment of production proceeds to the Trust, future quarterly distributions will 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 (NYSE:CHK) ("Chesapeake") 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 attributed to the royalty interests. As described in the Prospectus, the amount of Trust revenues and the quarterly distributions to Trust unitholders will fluctuate from quarter to quarter, depending on the timing of initial sales from the development wells drilled by Chesapeake in which the Trust receives an interest, 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, amounts realized and paid under the Trust’s hedging arrangements and the amount of the Trust's administrative expenses, among other factors.
Conference Call Information
Chesapeake will host a conference call to discuss the results on Tuesday, December 6, 2011 at 9:00 am EST. The telephone number to access the conference call is 913-312-9308 or toll-free 888-204-4317. The passcode for the call is 4176937. We encourage those who would like to participate in the call to place calls between 8:50 and 9:00 am EST.
For those unable to participate in the conference call, a replay will be available for audio playback at 1:00 pm EST on Tuesday, December 6, 2011 and will run through midnight Tuesday, December 20, 2011. The number to access the conference call replay is 719-457-0820 or toll-free 888-203-1112. The passcode for the replay is 4176937.
The conference call will also be webcast live on the Trust’s website at www.chkgranitewashtrust.com in the “Investors” section of the website. The webcast of the conference call will be available on the Trust’s website for one year.
ABOUT CHESAPEAKE GRANITE WASH TRUST:
Chesapeake Granite Wash Trust is a Delaware statutory trust formed by Chesapeake Energy Corporation 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 Energy Corporation. The common units are listed on the New York Stock Exchange under the symbol CHKR. Further information is available at www.chkgranitewashtrust.com where Chesapeake Granite Wash Trust routinely posts announcements, updates, investor information and news releases.
