HOUSTON - Chesapeake Granite Wash Trust (OTC Markets Group, Inc.: CHKR), a trust with royalty interests in oil and natural gas properties, announced a distribution of $0.0214 per common unit for the quarter ending December 31, 2023. This distribution primarily reflects production from September 1, 2023, through November 30, 2023, and is scheduled for payment on February 29, 2024, to unitholders on record as of February 19, 2024.
The trust reported oil sales volume of 11 thousand barrels (mbbl), natural gas sales of 280 million cubic feet (mmcf), and natural gas liquids sales of 23 mbbl for the production period. The total oil equivalent volume sold was 81 thousand barrels of oil equivalent (mboe). The average price received per production unit was $81.05 for oil, $1.80 for natural gas, and $20.27 for natural gas liquids, after considering certain deductions for marketing, gathering, and transportation.
According to the provided financial data, the trust's revenue, after production taxes, amounted to $1,769,000. Administrative expenses totaled $670,000, and $99,000 was withheld to increase cash reserves. Consequently, the distributable income available to unitholders was $1,000,000.
The Trustee has discretion over the cash reserve levels and may adjust the amount without prior notice to unitholders. As of December 31, 2023, approximately $1,660,288 has been withheld to augment the cash reserves, as part of a plan initiated in 2021 to bolster reserves by roughly $3,200,000 over several quarters. The reserves are invested according to the Trust Agreement, and any excess reserves will eventually be distributed to unitholders along with accrued interest.
Chesapeake Granite Wash Trust's holdings are concentrated in the Colony Granite Wash play in Washita County, Oklahoma. The Trust's income and subsequent quarterly distributions vary based on the sales volume of oil, natural gas liquids, and natural gas, the prices received for these sales, and administrative expenses, among other factors.
InvestingPro Insights
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