UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 19, 2018
Enduro Royalty Trust
(Exact name of registrant as specified in its charter)
Delaware |
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1-35333 |
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45-6259461 |
The Bank of New York Mellon Trust Company, N.A.,Trustee |
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77002 |
Registrants telephone number, including area code: (512) 236-6555
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On January 19, 2018, Enduro Royalty Trust issued a press release announcing Enduro Royalty Trusts distribution to be paid in February 2018. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
Pursuant to General Instruction B.2 of Form 8-K and Securities and Exchange Commission Release No. 33-8176, the press release attached as Exhibit 99.1 is not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, but is instead furnished for purposes of that instruction.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit 99.1 Enduro Royalty Trust Press Release dated January 19, 2018.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Enduro Royalty Trust | ||
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By: |
The Bank of New York Mellon Trust Company, N.A., as | |
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Date: January 19, 2018 |
By: |
/s/ Sarah Newell | |
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Sarah Newell |
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Vice President |
Enduro Royalty Trust Announces Monthly Cash Distribution
HOUSTON, Texas(BUSINESS WIRE)January 19, 2018
Enduro Royalty Trust (NYSE: NDRO) (the Trust) today announced a cash distribution to the holders of its units of beneficial interest of $0.018433 per unit, payable on February 14, 2018 to unitholders of record on January 31, 2018. The distribution primarily represents oil production during the month of October 2017 and natural gas production during September 2017.
The following table displays underlying oil and natural gas sales volumes and average received wellhead prices attributable to the current and prior month net profits interest calculations.
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Underlying Sales Volumes |
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Average Price |
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Oil |
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Natural Gas |
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Oil |
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Natural Gas |
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Bbls |
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Bbls/D |
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Mcf |
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Mcf/D |
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(per Bbl) |
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(per Mcf) |
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Current Month |
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52,890 |
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1,706 |
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353,764 |
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11,792 |
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$ |
47.83 |
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$ |
2.87 |
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Prior Month |
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59,411 |
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1,980 |
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308,694 |
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9,958 |
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$ |
46.84 |
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$ |
2.88 |
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Oil cash receipts for the properties underlying the Trust totaled $2.5 million for the current month, a decrease of $0.3 million from the prior month calculation as a result of a reduction in sales volumes compared to the prior month, due to payment timing differences as well as adjustments related to prior periods. Included in the current month distribution calculation is an adjustment by an operator in the Permian Basin reflecting an adjusted working interest in a well, which resulted in a reduction of 2,814 Bbls related to prior production periods. The reduction in oil revenues due to the decrease in sales volumes was offset by an increase in the realized wellhead price as a result of a 4.1% increase in the NYMEX price to $51.58.
Natural gas cash receipts increased from $0.9 million in the prior distribution period to $1.0 million in the current month due to increases in natural gas volumes. Natural gas volumes increased primarily due to production volumes from four gross (0.45 net) wells in the Haynesville, which began production in September 2017. These wells contributed 19% and 21% of the current months natural gas revenues and volumes, respectively. As these wells began producing in September, the current months volumes represent production for a partial month. Sales volumes related to these wells included in the current month distribution calculation were 2,477 Mcf/D.
Total direct operating expenses, including lease operating expenses, production and ad valorem taxes, and gathering and transportation expenses, increased $0.3 million to $2.7 million due to an increase in lease operating expenses. Capital expenditures for the current month distribution calculation were minimal at $20,000. Total direct operating expenses and capital expenditures relate to expenses incurred in November 2017.
About Enduro Royalty Trust
Enduro Royalty Trust is a Delaware statutory trust formed by Enduro Resource Partners to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain of Enduro Resource Partners properties in the states of Texas, Louisiana and New Mexico. As described in the Trusts filings with the Securities and Exchange Commission, the amount of the periodic distributions is expected to fluctuate, depending on the proceeds received by the Trust as a result of actual production volumes, oil and gas prices, the amount and timing of capital expenditures, and the Trusts administrative expenses, among other factors. Future distributions are expected to be made on a monthly basis. For additional information on the Trust, please visit www.enduroroyaltytrust.com.
Forward-Looking Statements and Cautionary Statements
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 facts, are forward-looking statements for purposes of these provisions. These forward-looking statements include the amount and date of any anticipated distribution to unitholders and expected expenses, including capital expenditures. The anticipated distribution is based, in large part, on the amount of cash received or expected to be received by the Trust from Enduro Resource Partners with respect to the relevant period. The amount of such cash received or expected to be received by the Trust (and its ability to pay distributions) has been and will be significantly and negatively affected by prevailing low commodity prices, which have declined significantly, could decline further and could remain low for an extended period of time. Other important factors that could cause actual results to differ materially include expenses of the Trust and reserves for anticipated future expenses. Statements made in this press release are qualified by the cautionary statements made in this press release. Neither Enduro Resource Partners nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release. An investment in units issued by Enduro Royalty Trust is subject to the risks described in the Trusts filings with the SEC, including the risks described in the Trusts Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 15, 2017. The Trusts quarterly and other filed reports are or will be available over the Internet at the SECs website at http://www.sec.gov.
Contact
Enduro Royalty Trust
The Bank of New York Mellon Trust Company, N.A., as Trustee
Sarah Newell 1 (512) 236-6555