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): May 18, 2015
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 |
(State or other jurisdiction of |
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(Commission |
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(IRS Employer |
incorporation ) |
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File Number) |
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Identification No.) |
The Bank of New York Mellon Trust Company, N.A., Trustee |
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Global Corporate Trust |
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919 Congress Avenue |
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Austin, Texas |
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78701 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (512) 263-6555
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))
Item 2.02 Results of Operations and Financial Condition.
On May 18, 2015, Enduro Royalty Trust issued a press release announcing Enduro Royalty Trusts distribution to be paid in June 2015. 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 May 18, 2015.
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 Trustee |
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Date: May 18, 2015 |
By: |
/s/ Sarah Newell |
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Sarah Newell |
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Vice President |
Exhibit 99.1
Enduro Royalty Trust Announces Monthly Cash Distribution
AUSTIN, Texas(BUSINESS WIRE)May 18, 2015
Enduro Royalty Trust (NYSE: NDRO) (the Trust) today announced a cash distribution to the holders of its units of beneficial interest of $0.023686 per unit, payable on June 12, 2015 to unitholders of record on May 29, 2015. The distribution primarily represents oil production during the month of February 2015 and natural gas production during January 2015.
The following table displays underlying oil and natural gas sales volumes and average prices attributable to the current and prior month net profits interest calculations.
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Underlying Sales Volumes |
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Average Price |
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Oil |
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Natural Gas |
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Oil |
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Natural Gas |
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Current Month |
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65,848 |
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499,735 |
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$ |
45.37 |
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$ |
2.79 |
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Prior Month |
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74,315 |
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365,039 |
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$ |
45.40 |
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$ |
3.37 |
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Oil cash receipts for the properties underlying the Trust totaled $3.0 million for the current month, a decrease of $0.4 million from the prior month calculation. The decrease was primarily due to decreased sales volumes resulting from three less production days in February.
Natural gas receipts increased $0.2 million from the prior month, totaling $1.4 million. The increase was due to increased sales volumes resulting primarily from the timing of cash receipts, partially offset by decreased NYMEX gas prices. As previously disclosed, the prior month distribution did not include any revenues or volumes from certain conventional wells in the Elm Grove field of the East Texas/North Louisiana region that were sold in late 2014. Due to the change in operators, the payment of approximately 87,000 Mcf of December 2014 natural gas production from these conventional properties was delayed, and both December 2014 and January 2015 natural gas production are included in the current month distribution.
Capital expenditures included in the current month distribution totaled $0.4 million and relate to expenses incurred during March 2015.
Permian Basin Operator Adjustment and Impact on Future Distribution
In late April, Enduro Resource Partners, the sponsor of the Trust, received check detail from one of its operators in the Permian Basin that included volume and revenue adjustments from May 2014 through January 2015 production related to properties included in the Trust. As a result of the volume adjustments, approximately $0.6 million was withheld from the payment to recoup overpayments of prior period production on several wells. As a result, the July 2015 distribution will be reduced by approximately $0.5 million related to this adjustment.
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 is significantly affected by prevailing commodity prices, which have dropped considerably over the past several months and remain highly volatile. Significant decreases in commodity prices could result in less cash available for distribution in future periods. 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, 2014, filed with the SEC on March 12, 2015. 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