Enduro Royalty Trust (NYSE:NDRO) today announced a cash distribution to the holders of its units of beneficial interest of $0.03187 per unit, payable on November 15, 2016 to unitholders of record on October 31, 2016. The distribution primarily represents oil production during the month of July 2016 and natural gas production during June 2016.
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.
| Underlying Sales Volumes | Average Price | ||||||||||||||
| Oil | Natural Gas | Oil | Natural Gas | ||||||||||||
| Bbls | Bbls/D | Mcf | Mcf/D | (per Bbl) | (per Mcf) | ||||||||||
| Current Month | 63,585 | 2,051 | 349,412 | 11,647 | $ | 41.83 | $ | 2.04 | |||||||
| Prior Month | 63,325 | 2,111 | 378,239 | 12,201 | $ | 45.24 | $ | 1.85 | |||||||
Oil cash receipts for the properties underlying the Trust totaled $2.7 million for the current month, a decrease of $0.2 million from the prior month calculation. The decrease was due to a 7.5 percent decrease in NYMEX oil prices from June to July, partially offset by one more production day during July. Natural gas cash receipts remained consistent, totaling approximately $0.7 million for both periods, as the reduced production volumes due to one fewer production day in June was offset by an increase in natural gas prices.
Total direct operating expenses, including lease operating expenses, production and ad valorem taxes, and gathering and transportation expenses, declined slightly but remained consistent at $2.1 million. Capital expenditures for the current distribution period were approximately $0.1 million. Total direct operating expenses and capital expenditures relate to expenses incurred during August 2016.
Enduro Resource Partners, the sponsor of the Trust (“Enduro”), previously established a reserve for approved development expenses. As a result of lower than anticipated capital expenditures to date in 2016, resulting in reduced expectations for 2016 capital expenditures, Enduro has released $100,000 of the reserve in the current distribution period, thereby increasing the net profits attributable to the Trust. Enduro has a remaining total reserve of $150,000 for approved development expenses.
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 Trust’s 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 Trust’s 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.