Chesapeake Granite Wash Trust Announces Distribution of $0.0189 Per Common Unit
MWN-AI** Summary
Chesapeake Granite Wash Trust (OTC: CHKR) recently declared a quarterly distribution of $0.0189 per common unit for the period ending June 30, 2025. This distribution, aimed at common unitholders of record as of August 19, 2025, is scheduled for payment on August 29, 2025. The announcement provides insights into the Trust’s financial performance, noting that the distributable income was primarily derived from the Trust’s royalty interests during March 1 to May 31, 2025.
During this production period, Chesapeake recorded sales volumes of 8,000 barrels of oil, 218 million cubic feet of natural gas, and 18,000 barrels of natural gas liquids, culminating in total oil equivalent volumes of 63,000 barrels. Reported prices per production unit were $60.76 for oil, $2.50 for natural gas, and $24.20 for natural gas liquids. After accounting for production taxes, administrative expenses, and cash reserve allocations, the Trust’s total distributable income amounted to $885,000, with a per-unit distribution reflecting $0.0189 based on 46.75 million outstanding common units.
It's important to note that Chesapeake Granite Wash Trust’s income and subsequent distributions can vary based on fluctuating sales volumes and market prices, in addition to administrative costs. The Trust’s cash reserves are consistently monitored, allowing the Trustee to adjust fund withholding for future expenses as necessary.
For further details about the Trust's operations and financials, stakeholders can refer to the Trust's previous SEC filings. Comprehensive financial updates will also be disclosed on the corporate website and OTC Markets page. As usual, investors are advised to consider inherent risks associated with investing in such trust units as outlined in the Trust's annual reports.
MWN-AI** Analysis
Chesapeake Granite Wash Trust (OTCQB: CHKR) has announced a quarterly distribution of $0.0189 per common unit for the quarter ending June 30, 2025. The timing of this distribution, set to be paid on August 29, 2025, highlights the Trust's ongoing ability to generate cash flow from its royalty interests in the oil and natural gas sector, specifically within the Colony Granite Wash play in Oklahoma.
The reported distributable income for the quarter is a reflection of combined revenues from oil and gas sales, equating to approximately $885,000 after deducting administrative expenses and cash reserves. With oil prices averaging around $60.76 per barrel and natural gas prices at $2.50 per mcf, fluctuations in commodity prices directly affect the Trust’s profitability. Investors should remain cognizant of the inherent volatility in oil and gas markets, which can drive significant changes in revenue and consequently in distributions.
While the current distribution is modest, it underscores the Trust's strategy to maintain a cash reserve to mitigate future risks related to production expenses. Investors might appreciate the conservative approach to fiscal management, given recent geopolitical tensions that could impact energy prices. However, the distribution yield remains relatively low, and potential buyers must weigh the modest income against the broader context of energy price movements and the economic landscape.
From a market perspective, potential investors should consider the Trust's financial health in the context of fluctuating oil and gas prices, anticipated future expenses, and global economic trends. It's advisable to remain cautious and keep a close watch on the Trust's quarterly performance as well as macroeconomic factors influencing energy markets before making investment decisions. Risk remains, particularly in light of geopolitical events in Ukraine and Israel, which could further affect market dynamics.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Chesapeake Granite Wash Trust (OTCID Basic Market:CHKR) (the “Trust”) today announced that its common unit distribution for the quarter ended June 30, 2025 (which primarily relates to production attributable to the Trust’s royalty interests from March 1, 2025 through May 31, 2025) will be $0.0189 per common unit. The distribution will be paid on August 29, 2025 to common unitholders of record at the close of business on August 19, 2025.
The following table provides supporting documentation for the calculation of distributable income available to unitholders for the production period from March 1, 2025 through May 31, 2025.
Sales volumes: | |||
Oil (mbbl) | 8 | ||
Natural gas (mmcf) | 218 | ||
Natural gas liquids (mbbl) | 18 | ||
Total oil equivalent volumes (mboe) | 63 | ||
Average price received per production unit: (1) | |||
Oil | $ | 60.76 | |
Natural gas | $ | 2.50 | |
Natural gas liquids | $ | 24.20 | |
Distributable income calculation (in thousands except per unit income): | |||
Revenue less production taxes (1) | $ | 1,412 | |
Trust administrative expenses | (428) | ||
Cash withheld to increase cash reserves (2) | (99) | ||
Distributable income available to unitholders | $ | 885 | |
Calculated distributable income per unit (3) | $ | 0.0189 |
(1) | Includes the effect of certain marketing, gathering and transportation deductions. |
(2) | The Trustee may increase or decrease the targeted amount of the cash reserve at any time, and may increase or decrease the rate at which it is withholding funds to build the cash reserve at any time, without advance notice to the unitholders. Without limiting the foregoing, the Trustee reviewed the adequacy and sufficiency of the existing cash reserve in 2021 and determined to withhold funds otherwise available for distribution to unitholders each quarter to increase existing cash reserves by a total of approximately $3,200,000 over a period of several quarters, commencing with the distribution to unitholders for the fourth quarter 2021 (payable in 2022). As of June 30, 2025 $2,253,328 has been so withheld to increase cash reserves. Cash held in reserve will be invested as required by the Trust Agreement. Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds. |
(3) | Based on 46,750,000 common units issued and outstanding. |
Due to the timing of the payment of production proceeds to the Trust, quarterly distributions generally include royalties attributable to sales of oil, natural gas liquids and natural gas for three months, including the first two months of the quarter just ended and the last month of the prior quarter.
The Trust owns royalty interests in certain oil and natural gas properties in the Colony Granite Wash play in Washita County, Oklahoma. The Trust is entitled to receive proceeds from the sale of production attributable to the royalty interests. As described in the Trust’s filings previously with the Securities and Exchange Commission (the “SEC”) and information about the Trust that is available on the website of the OTC Markets Group Inc. (“OTC Markets”), the amount of Trust revenues and the quarterly distributions to Trust unitholders will fluctuate from quarter to quarter, depending on the sales volume of oil, natural gas liquids and natural gas attributable to the Trust’s royalty interests and the prices received for such sales and the amount of the Trust’s administrative expenses, among other factors.
For additional information regarding the Trust and its results of operations and financial condition, please refer to the Trust’s previous SEC filings through the quarterly period ended September 30, 2024. The Trust’s financial results for the quarter ended June 30, 2025 will be made available on the Investors section of the corporate website at: http://chkgranitewashtrust.com/investors/ and on the OTC Markets website at: https://www.otcmarkets.com/stock/CHKR/disclosure .
ABOUT CHESAPEAKE GRANITE WASH TRUST:
Pursuant to IRC Section 1446, withholding tax on income effectively connected to a U.S. trade or business allocated to foreign partners should be made at the highest marginal rate. Under Section 1441, withholding tax on fixed, determinable, annual, periodic income from U.S. sources allocated to foreign partners should be made at 30% of gross income unless the rate is reduced by treaty. This release is intended to be a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b) by the Trust, and while specific relief is not specified for Section 1441 income, this disclosure is intended to suffice. For distributions made to foreign partners, nominees and brokers should withhold at the highest effective tax rate.
This news release contains statements that are forward-looking statements. All statements contained in this news release, other than statements of historical facts, are forward-looking statements. The anticipated distribution discussed herein is based, in part, on the amount of cash received or expected to be received by the Trust with respect to the relevant quarterly period. Any differences in actual cash receipts by the Trust could affect this distributable amount. Other important factors that could cause actual results to differ materially include the conflicts in Ukraine and Israel and related economic turmoil, expenses of the Trust and reserves for anticipated future expenses. The Trustee neither intends and neither assumes any obligation, to update any of the statements included in this news release. An investment in common units issued by the Trust is subject to the risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as other risks identified in the Trust’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K previously filed with the SEC. The Trust’s historical annual, quarterly and other filed reports are available at the SEC’s website at www.sec.gov . The Trust does not intend, and assumes no obligations, to update any of the statements included in this news release. Further information is available at www.chkgranitewashtrust.com , where the Trust routinely posts announcements, updates, investor information and news releases.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250804045162/en/
TRUSTEE CONTACT INFORMATION:
The Bank of New York Mellon Trust Company, N.A.
Sarah Newell
512-236-6555
sarah.newell@bnymellon.com
FAQ**
How does the recent distribution of $0.0189 per common unit by Chesapeake Granite Wash Trust Units CHKR compare to previous distributions, and what factors contributed to this change?
Given the fluctuating sales volumes and prices for oil and gas, what strategies does Chesapeake Granite Wash Trust Units CHKR employ to mitigate risks associated with revenue variability?
Can you explain the impact of cash reserves withheld, as mentioned in the Chesapeake Granite Wash Trust Units CHKR announcement, on future distributions to unitholders?
What future developments or market conditions might influence the performance and distribution of Chesapeake Granite Wash Trust Units CHKR, particularly in relation to geopolitical factors?
**MWN-AI FAQ is based on asking OpenAI questions about Chesapeake Granite Wash Trust Units (OTC: CHKR).
NASDAQ: CHKR
CHKR Trading
-2.31% G/L:
$0.4152 Last:
3,681 Volume:
$0.422844 Open:
