Whiting USA Trust I

For more information regarding Whiting USA Trust I
please contact:

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

Mike Ulrich
919 Congress Ave, Suite 500
Austin, TX 78701
Phone: 512-236-6599

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WHX Profile

Whiting USA Trust I was formed in October 2007, by Whiting Petroleum Corporation. Whiting Petroleum Corporation’s wholly-owned subsidiaries, Whiting Oil and Gas Corporation and Equity Oil Company, conveyed a term net profits interest to the trust that represented the right to receive 90% of the net proceeds from Whiting’s interests in certain existing oil and natural gas producing properties. The net profits interest will terminate when 9.11 MMBOE (which amount is equivalent to 8.20 MMBOE attributable to the net profits interest) have been produced and sold from the underlying properties, and the trust will soon thereafter wind up its affairs and terminate, after which it will pay no further distributions.

Based on the trust’s reserve report for the underlying properties as of December 31, 2014, the net profits interest termination date is estimated to occur by January 31, 2015. Consequently the market price of the trust units should decline to zero around or shortly after the record date for the final expected distribution. To the extent that the trust units are trading at a price substantially in excess of the aggregate distributions that may reasonably be expected to be made prior to the termination of the trust, the price decline is likely to include one or more abrupt substantial decreases.

The producing properties in the trust are located primarily in the Rocky Mountains, Mid-Continent, Permian Basin and Gulf Coast regions of the United States. The underlying properties are located in mature fields and have established production profiles. Although it is not required to do so, Whiting has and plans to continue to make capital expenditures at its sole expense for recompletions and development it deems attractive to increase production on the underlying properties without regard to the burden of the net profits interest on the underlying properties. These capital expenditures could potentially accelerate the production and sale of 9.11 MMBOE from the underlying properties.

Net proceeds payable to the trust depend upon production quantities, sale prices of oil, natural gas and natural gas liquids, and costs to produce the oil, natural gas and natural gas liquids. If at any time costs should exceed gross proceeds, neither the trust nor the trust unitholders would be liable for the excess costs; the trust, however, would not receive any net proceeds until future net proceeds exceed the total of those excess costs, plus interest at the prevailing money market rate.