9 Sept 2021listing compliance notice▼ BadMajor
SandRidge Permian Trust terminated the registration of a class of securities, ending its reporting obligation for them.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
24 June 2021asset acquisition disposition● NeutralMajor
On June 18, 2021 the Trust sold all its remaining royalty interests to Montare Resources I, LLC for $6,000,000, after Avalon waived its right of first refusal. Montare also agreed to pay about $3.2 million to take over the Trust's claim on Avalon for the unpaid May 2020 payment, after Avalon had paid $1,352,875. The sale proceeds and that payment, less expenses and reserves, are to be distributed in August 2021, and no regular quarterly distributions will follow that one. Montare was already a roughly 9.4% unitholder and has a support agreement with Avalon, so the buyer is a related party. This carries out the wind-up that began in February 2021.
1 Apr 2021material agreement● Neutral
The Trust and Avalon amended the 2011 administrative services agreement, effective February 26, 2021, so the Trust can keep receiving services from Avalon until it is fully wound up. This is housekeeping that supports the dissolution already under way.
2 Mar 2021material agreement▼ BadMajor
Avalon and the Trust signed a repayment agreement on March 1, 2021 covering the roughly $4.65 million Avalon failed to pay in May 2020, plus interest. Avalon's own distributions go to the Trust until it is repaid, starting with $984,375 from the February distribution. Separately, an arbitration panel ruled on February 25, 2021 that the Trust must dissolve because cash available for distribution was about $2.4 million over the four quarters ended December 31, 2020, below the $5.0 million threshold. Winding up began after February 26, 2021, with the royalty interests to be sold and the units expected to be cancelled after the sale, targeted for around the end of Q3 2021. This resolves the earlier uncertainty about whether the Trust continues.
13 Nov 2020asset acquisition disposition▼ BadMajor
This amends an earlier report to disclose that on October 13, 2020 Avalon sold wells to Montare Resources I, LLC for about $4.9 million, and the Trust released part of its royalty interests as a result. The released interests were about 32% of the royalty interests' fair value at September 1, 2020 but about 76% of August 2020 production. The $4.9 million went to the Trust and is to be distributed with the quarterly distribution (if any) for the quarter ending December 31, 2020, expected in late February 2021. The pro forma figures cut nine-month 2020 distributable income from $4.865 million to $0.258 million. Montare is the same buyer that had been accumulating Trust units in recent weeks.
27 Oct 2020business combination● NeutralMajor
The Trust responded to an unsolicited offer by PEDEVCO's subsidiary SRPT Acquisition, LLC (filed October 13, 2020) to swap each Trust unit for 4/10ths of one PEDEVCO share. The Trustee gives no recommendation, saying the Trust Agreement does not authorise it to take a position, and tells unitholders to decide with their own advisors. The filing also restates the Trust's terms, including dissolution on March 31, 2031 or earlier if cash available for distribution is under $5.0 million over four consecutive quarters.
28 Sept 2020listing compliance notice● NeutralMajor
SandRidge Permian Trust's exchange filed to remove a class of its securities from listing.
9 Sept 2020listing compliance notice▼ BadMajor
The Trust did not regain compliance by the September 5, 2020 end of its cure period, so the NYSE suspended trading after September 8, 2020 and started delisting proceedings. The units were expected to trade on the OTC Pink market as 'PERS' from September 9, a less liquid market. This continues the January 2020 listing warning and the outcome is the one it warned of.
23 Jan 2020asset acquisition disposition● Neutral
The Trust announced a quarterly distribution of about $4.19 million, or $0.080 per unit, for the quarter ended December 31, 2019, payable by February 28, 2020. The filing says production is expected to decline each quarter because no more development wells will be drilled, and the Trustee is withholding $190,000 for cash reserves. The filing is labelled an asset disposition but contains no sale or acquisition.
3 Jan 2020listing compliance notice▼ BadMajor
The NYSE told the Trust on December 27, 2019 that it fell short of listing standards because the average unit price was below $1.00 over 30 trading days. The Trust has six months to get back above $1.00 and says it will not try a reverse split or similar step. Delisting is possible if it fails.
5 Nov 2018material agreement● NeutralMajor
On November 1, 2018, SandRidge sold all of its interests in the properties underlying the Trust and all its Trust units to Avalon Energy, LLC. Avalon took over SandRidge's obligations under the Trust Agreement and the Administrative Services Agreement. The filing says the Trust expects to continue without disruption and the sale is not expected to affect operations or future distributions. This ends SandRidge's role set up at the 2011 IPO.
29 Oct 2015dividend declaration● Neutral
The trust declared 25 cents a unit, $9.9 million in total, for the September 2015 quarter - money earned on Permian production from June to August, after the oil price had already halved.
13 Apr 2012debt financing● Neutral
On April 12, 2012, certain oil hedging contracts that SandRidge had with Morgan Stanley were transferred directly to the Trust, as foreseen in the August 2011 Derivatives Agreement. They cover set quarterly oil volumes (for example 105,520.6 barrels for April-June 2012) through March 31, 2015.
19 Aug 2011capital raising announcement● NeutralMajor
The Trust closed its IPO of 34,500,000 common units on August 16, 2011 and received perpetual royalty interests in oil and gas properties in Andrews County, Texas from SandRidge's subsidiary. In exchange, SandRidge's subsidiaries received 4,875,000 common units, 13,125,000 subordinated units and about $584 million of net IPO proceeds. SandRidge also agreed to a drilling obligation secured by a lien, a hedging arrangement through March 31, 2015, a $300,000 per year administrative services fee, and registration rights.
12 Aug 2011material agreement● NeutralMajor
The Trust and SandRidge Energy signed an underwriting agreement with Morgan Stanley, Raymond James, RBC Capital Markets and Wells Fargo for the sale of 30,000,000 common units at $18.00 each. The underwriters also have a 30-day option to buy 4,500,000 more units; this is the pricing step of the offering registered earlier in 2011.
9 Aug 2011listing compliance notice▲ GoodMajor
the New York Stock Exchange certified SandRidge Permian Trust's securities for listing, clearing them to begin trading.