Thursday, April 10, 2014

Whiting USA Trust 1 Nearing Its End; For Investors Only; COP

ConocoPhillips outlines plans for growth and returns at analyst meeting: Co increases recoverable resource and future production estimate in its Eagle Ford program:
Co reaffirmed its objective to deliver double-digit returns annually to shareholders at its Analyst Meeting held at the New York Stock Exchange. Members of the company's executive leadership team outlined ConocoPhillips' goal to consistently deliver 3 to 5 percent compound annual growth in production and margins, with a compelling dividend, from a diversified, high-quality portfolio. 
ConocoPhillips highlighted its substantial U.S. unconventional position and announced an increase of its estimated resource base in the prolific Eagle Ford play. Based on its prime acreage position and technical knowledge, the company has increased its estimates from 1.8 billion to 2.5 billion barrels of oil in place. Production is also expected to increase from current volumes to more than 250 thousand barrels of oil equivalent a day by 2017.

Over the next several years, ConocoPhillips plans ... $16 billion per year and achieve the company's organic reserve replacement target of more than 100 percent. The company expects to generate 3 to 5 percent compound annual production growth...

From the Whiting USA Trust 1 10-K:
The NPI will terminate when 9.11 MMBOE have been produced and sold from the underlying properties (such amount is the equivalent of 8.20 MMBOE in respect of the Trust’s right to receive 90% of the net proceeds from such reserves pursuant to the NPI), which is estimated to occur on March 31, 2015 based on the reserve report (as defined below).
The Trust will soon thereafter wind up its affairs and terminate, after which it will pay no further distributions and the market price of Trust units will have declined to zero. To the extent that the Trust units are trading at a price substantially in excess of the aggregate distributions that may be reasonably expected to be made prior to the termination of the Trust, the market price decline in Trust units is likely to include one or more abrupt substantial decreases.
As of December 31, 2013, on a cumulative accrual basis 7.12 MMBOE (87%) of the Trust’s total 8.20 MMBOE have been produced and sold and a cumulative 0.02 MMBOE have been divested.
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Richard Zeits on SandRidge over at SeekingAlpha.
  • Using production test results for a 32-well sample as a proxy for the company’s overall well quality, Q1 2014 is shaping up as a middle-of-the-road quarter.
  • Given that the number of wells brought on production during Q1 will likely be below the 2013 average, it is difficult to expect meaningful sequential production growth.
Six companies announced increased dividends or distributions, including a very small EPD distribution increase.   

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