Williams Coal Seam Gas Royalty Trust Tru (WTU, Financial) filed Quarterly Report for the period ended 2010-06-30.
Williams Coal Seam Gas Royalty Trust Tru has a market cap of $19.88 million; its shares were traded at around $2.22 with and P/S ratio of 6.9. The dividend yield of Williams Coal Seam Gas Royalty Trust Tru stocks is 25.81%.
For the quarter ended June 30, 2010, royalty income received by the Trust amounted to $407,607 as compared to $931,608 received for the same quarter in 2009. Royalty income would have been $165,792 for the quarter ended June 30, 2009, if the Trust had not received an overpayment from WPC of $765,816. Production volumes are affected by changes in sales prices for natural gas produced and costs that are deducted in calculating the NPI Net Proceeds. Production related to the royalty income received by the Trust in the second quarter of 2010 was 462,627 MMBtu (exclusive of the impact of the retroactive unit expansion adjustment described below) as compared to 473,556 MMBtu for the second quarter 2009. Excluding the impact of WPCs overpayment error in the second quarter of 2009, the increase in royalty income received is primarily resulting from significant increases in prices realized for the months of January and February 2010 compared with those in the prior year. These significant price increases were substantially offset by a retroactive unit expansion adjustment, which reduced royalty income in 2010 by approximately $807,000 and a reduction in proceeds related to the lack of inclusion of the production month of March 2010, which was received following the Termination Date. General and administrative expenses for the quarter ended June 30, 2010 were lower compared to the same quarter in 2009 due to the elimination of various on-going services as a result of the impending liquidation of the Trust.
Royalty income for the six months ended June 30, 2010 was $1,172,185 as compared to $2,325,261 for the same period in 2009. Royalty income for the six month period ended June 30, 2009 would have been $1,559,445 if not for the overpayment by WPC. Production related to the royalty income received by the Trust for the six months ended June 30, 2010 was 1,002,835 MMBtu (exclusive of the impact of the retroactive unit expansion adjustment) as compared to 1,128,876 MMBtu for the six months ended June 30, 2009. Excluding the impact of WPCs overpayment error in the second quarter of 2009, the decrease in royalty income received is primarily resulting from the $807,000 retroactive unit expansion adjustment, which reduced royalty income for the first half of 2010 partially offset by price increases between the comparative periods.
accrue price credits in the amount of any excess of the minimum price so paid over the applicable index price. When the applicable index price exceeds $1.70 per MMBtu, WPX Gas Resources is entitled to recoup any price credits previously accrued. When the applicable index price is greater than $1.94 per MMBtu, the Gas Purchase Contract protects and benefits WPX Gas Resources by allowing it to purchase gas from WPC at a contract price equal to $1.94 per MMBtu plus only 50 percent of the difference between the applicable index price and $1.94 per MMBtu. The Gas Purchase Contract also provides that the price paid for gas by WPX Gas Resources is reduced by the amount of gathering, processing and certain other costs paid by WPX Gas Resources. See Item 2 Properties The Royalty Interests Gas Purchase Contract in the 2009 Annual Report for detailed information about the Gas Purchase Contract and its impact on Trust income.
For the six months ended June 30, 2010, which is based on production volumes and natural gas prices through the March 1, 2010 Termination Date, the Blanco Hub Spot Price was above $2.00 per MMBtu, and therefore the applicable index price under the Gas Purchase Contract, which is equal to 97% of the Blanco Hub Spot Price, was above $1.94 per MMBtu through such period. In general, under the Gas Purchase Contract, the Trust only receives the benefit of 50 percent of any amount by which the applicable index price exceeds $1.94 per MMBtu. Consequently, pursuant to the terms of the Gas Purchase Contract, WPX Gas Resources paid WPC an amount for gas purchased equal to $1.94 per MMBtu, less the costs paid by WPX Gas Resources to gather and process such gas and deliver it to specified delivery points plus 50 percent of the excess of the applicable index price over $1.94 per MMBtu. The Blanco Hub Spot Price remained above $2.00 per MMBtu in July 2010.
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Williams Coal Seam Gas Royalty Trust Tru has a market cap of $19.88 million; its shares were traded at around $2.22 with and P/S ratio of 6.9. The dividend yield of Williams Coal Seam Gas Royalty Trust Tru stocks is 25.81%.
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With respect to the Trust termination provisions as outlined in the Trust Agreement, the net present value of the estimated future net revenues computed in accordance with the Trust Agreement, using an average 2009 index price of $3.25, by the independent petroleum engineers as of December 31, 2009 was approximately $8.4 million (which assumed continuation of the Gas Purchase Contract with WPX through 2012). The results of this computation have triggered an early termination of the Trust. Because the Trusts computed net present value fell below the $30 million stipulated threshold as of December 31, 2009, the Trust terminated effective March 1, 2010 (Termination Date).For the quarter ended June 30, 2010, royalty income received by the Trust amounted to $407,607 as compared to $931,608 received for the same quarter in 2009. Royalty income would have been $165,792 for the quarter ended June 30, 2009, if the Trust had not received an overpayment from WPC of $765,816. Production volumes are affected by changes in sales prices for natural gas produced and costs that are deducted in calculating the NPI Net Proceeds. Production related to the royalty income received by the Trust in the second quarter of 2010 was 462,627 MMBtu (exclusive of the impact of the retroactive unit expansion adjustment described below) as compared to 473,556 MMBtu for the second quarter 2009. Excluding the impact of WPCs overpayment error in the second quarter of 2009, the increase in royalty income received is primarily resulting from significant increases in prices realized for the months of January and February 2010 compared with those in the prior year. These significant price increases were substantially offset by a retroactive unit expansion adjustment, which reduced royalty income in 2010 by approximately $807,000 and a reduction in proceeds related to the lack of inclusion of the production month of March 2010, which was received following the Termination Date. General and administrative expenses for the quarter ended June 30, 2010 were lower compared to the same quarter in 2009 due to the elimination of various on-going services as a result of the impending liquidation of the Trust.
Royalty income for the six months ended June 30, 2010 was $1,172,185 as compared to $2,325,261 for the same period in 2009. Royalty income for the six month period ended June 30, 2009 would have been $1,559,445 if not for the overpayment by WPC. Production related to the royalty income received by the Trust for the six months ended June 30, 2010 was 1,002,835 MMBtu (exclusive of the impact of the retroactive unit expansion adjustment) as compared to 1,128,876 MMBtu for the six months ended June 30, 2009. Excluding the impact of WPCs overpayment error in the second quarter of 2009, the decrease in royalty income received is primarily resulting from the $807,000 retroactive unit expansion adjustment, which reduced royalty income for the first half of 2010 partially offset by price increases between the comparative periods.
accrue price credits in the amount of any excess of the minimum price so paid over the applicable index price. When the applicable index price exceeds $1.70 per MMBtu, WPX Gas Resources is entitled to recoup any price credits previously accrued. When the applicable index price is greater than $1.94 per MMBtu, the Gas Purchase Contract protects and benefits WPX Gas Resources by allowing it to purchase gas from WPC at a contract price equal to $1.94 per MMBtu plus only 50 percent of the difference between the applicable index price and $1.94 per MMBtu. The Gas Purchase Contract also provides that the price paid for gas by WPX Gas Resources is reduced by the amount of gathering, processing and certain other costs paid by WPX Gas Resources. See Item 2 Properties The Royalty Interests Gas Purchase Contract in the 2009 Annual Report for detailed information about the Gas Purchase Contract and its impact on Trust income.
For the six months ended June 30, 2010, which is based on production volumes and natural gas prices through the March 1, 2010 Termination Date, the Blanco Hub Spot Price was above $2.00 per MMBtu, and therefore the applicable index price under the Gas Purchase Contract, which is equal to 97% of the Blanco Hub Spot Price, was above $1.94 per MMBtu through such period. In general, under the Gas Purchase Contract, the Trust only receives the benefit of 50 percent of any amount by which the applicable index price exceeds $1.94 per MMBtu. Consequently, pursuant to the terms of the Gas Purchase Contract, WPX Gas Resources paid WPC an amount for gas purchased equal to $1.94 per MMBtu, less the costs paid by WPX Gas Resources to gather and process such gas and deliver it to specified delivery points plus 50 percent of the excess of the applicable index price over $1.94 per MMBtu. The Blanco Hub Spot Price remained above $2.00 per MMBtu in July 2010.
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