Chesapeake Granite Wash Trust Announces Distribution of $0.0161 Per Common Unit
MWN-AI** Summary
Chesapeake Granite Wash Trust (OTC: CHKR) has announced a quarterly distribution of $0.0161 per common unit for the period ending September 30, 2025. This distribution is linked to production attributable to the Trust's royalty interests from June 1 to August 31, 2025. Unitholders of record as of November 19, 2025, will receive the distribution on December 1, 2025.
The Trust’s latest results reveal production of 6,000 barrels of oil, 206 million cubic feet of natural gas, and 15,000 barrels of natural gas liquids, translating to a total of 56,000 barrels of oil equivalent. The average prices received during this period were $64.37 per barrel of oil, $1.29 per mcf of natural gas, and $21.61 per barrel of natural gas liquids. The calculated distributable income for unitholders stands at $508,000 after accounting for production taxes, administrative expenses, and reserves.
The Trust has a systematic approach to managing its cash reserves, having withheld approximately $2.35 million since fourth-quarter 2021 to bolster its financial stability. These reserves, as per the Trust Agreement, may also be distributed to unitholders with interest once they surpass needed levels for anticipated expenses.
Chesapeake Granite Wash Trust owns interests in oil and natural gas properties located in Oklahoma's Colony Granite Wash play. Changes in sales volumes and the prices for oil and gas products will inherently affect future revenues and distributions. For more detailed financial information, interested parties can access the Trust's filings with the SEC and further reports through the company’s investor relations website.
Investors are reminded that investments in the Trust carry significant risks, highlighted in the Trust's annual and quarterly reports.
MWN-AI** Analysis
Chesapeake Granite Wash Trust (OTC: CHKR) recently announced a quarterly distribution of $0.0161 per common unit, reflecting its performance for the quarter ending September 30, 2025. Investors should approach this distribution with a careful assessment of both current financial metrics and broader market conditions.
With reported revenues after production taxes amounting to $927,000, and total production of 56,000 BOE, the figures underline the volatility common in the energy sector. Notably, the average price received for oil stood at $64.37 per barrel, while natural gas and liquids fetched $1.29 and $21.61, respectively. Given fluctuating commodity prices, the distribution is expected to vary significantly with changing market dynamics.
Investors should also consider the Trust’s decision to withhold a portion of cash reserves ($99,000 this quarter) to bolster financial stability. This reserve management strategy, while reducing immediate distributions, can ultimately enhance the Trust’s long-term resilience, particularly amid economic uncertainties influenced by geopolitical factors.
Furthermore, the Trust operates in the Colony Granite Wash play in Oklahoma, an area that could experience fluctuations in production yields and pricing based on market demand and external economic conditions. The reliance on royalty interests presents inherent risks tied to operational and financial performance.
Market participants should be mindful of potential headwinds affecting energy markets, such as the ongoing conflicts in Ukraine and Israel, which can increase volatility. Given the distribution amount and general performance trends, CHKR may appeal to income-focused investors, but it is essential to weigh the accompanying risks of low distributions and price volatility.
Given these insights, investors should consider diversifying their portfolios and remain updated on market trends while monitoring the Trust's performance and external market conditions that could impact future distributions.
**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 September 30, 2025 (which primarily relates to production attributable to the Trust’s royalty interests from June 1, 2025 through August 31, 2025) will be $0.0161 per common unit. The distribution will be paid on December 1, 2025 to common unitholders of record at the close of business on November 19, 2025.
The following table provides supporting documentation for the calculation of distributable income available to unitholders for the production period from June 1, 2025 through August 31, 2025.
Sales volumes: | ||||||||
Oil (mbbl) | 6 | |||||||
Natural gas (mmcf) | 206 | |||||||
Natural gas liquids (mbbl) | 15 | |||||||
Total oil equivalent volumes (mboe) | 56 | |||||||
Average price received per production unit: (1) | ||||||||
Oil | $ | 64.37 | ||||||
Natural gas | 1.29 | |||||||
Natural gas liquids | $ | 21.61 | ||||||
Distributable income calculation (in thousands except per unit income): | ||||||||
Revenue less production taxes (1) | $ | 927 | ||||||
Trust administrative expenses | (74 | ) | ||||||
Cash withheld to increase cash reserves (2) | (99 | ) | ||||||
Distributable income available to unitholders | $ | 508 | ||||||
Calculated distributable income per unit (3) | $ | 0.0161 |
(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 September 30, 2025 $2,352,078 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 September 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 does not intend, and does not assume 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 through the quarterly period ended September 30, 2024 and at the OTC Markets website at https://www.otcmarkets.com/stock/CHKR/dislosure beginning with the annual period ended December 31, 2024. 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/20251104115881/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 has the average price received for oil, natural gas, and natural gas liquids impacted the distribution per common unit of Chesapeake Granite Wash Trust Units CHKR in recent quarters?
What are the key factors influencing the fluctuations in sales volumes and distributions of Chesapeake Granite Wash Trust Units CHKR, particularly in the context of global economic events?
Can you explain the rationale behind withholding cash to increase reserves and how this strategy affects the overall distributions to unitholders of Chesapeake Granite Wash Trust Units CHKR?
What potential risks related to the geopolitical landscape could adversely affect the financial performance of Chesapeake Granite Wash Trust Units CHKR moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Chesapeake Granite Wash Trust Units (OTC: CHKR).
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