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WHITING USA TRUST I (WHX) filed Quarterly Report for the period ended 2011-09-30.
Whiting Usa Trust I has a market cap of $255.2 million; its shares were traded at around $18.41 with a P/E ratio of 6.8. The dividend yield of Whiting Usa Trust I stocks is 17.9%.
This is the annual revenues and earnings per share of WHX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of WHX.
Highlight of Business Operations:
Cash Settlements on Commodity Derivatives. In connection with Whiting’s conveyance of the net profits interest to the Trust, Whiting entered into certain costless collar hedge contracts in order to reduce the Trust’s exposure to commodity price volatility. If current market prices are lower than a collar’s price floor when the cash settlement amount is calculated, Whiting receives cash proceeds from the contract counterparty. Conversely, if current market prices are higher than a collar’s price ceiling when the cash settlement amount is calculated, Whiting is required to pay the contract counterparty. Cash settlements relating to these hedges resulted in a gain of $3.6 million for the nine months ended September 30, 2011, which had the effect of increasing the average price of natural gas by $1.66 per Mcf for that 2011 period. Cash settlements relating to these hedges resulted in a gain of $3.5 million for the nine months ended September 30, 2010, which had the effect of increasing average prices by $0.30 per Bbl of oil and $1.31 per Mcf of natural gas for that 2010 period.Distributable Income. For the nine months ended September 30, 2011, the Trust’s distributable income was $30.8 million and was based on income from net profits interest of $31.6 million less Trust general and administrative costs and cash withheld of $575,000 and Montana state income tax withholdings of $200,906. This compares to distributable income of $29.2 million for the first nine months of 2010, which was based on income from net profits interest of $30.0 million less $700,000 for Trust expenses and $163,094 in Montana state income tax withholdings.
Revenues. Oil and natural gas revenues increased $2.4 million or 14% for the three months ended September 30, 2011 as compared to the same period in 2010. Revenues are a function of oil and natural gas sales prices and volumes sold. The increase in revenues between periods was due to a higher market price for oil during the third quarter of 2011, which effect was partially offset by a lower market price for natural gas and lower oil and natural gas sales volumes between periods. The average price for oil before the effects of hedging increased 36%, while the average price for natural gas before the effects of hedging decreased 3%. Oil sales volumes decreased 10% or 21 MBbls between quarters, and gas sales volumes decreased 17% or 134 MMcf for the three months
Cash Settlements on Commodity Derivatives. In connection with Whiting’s conveyance of the net profits interest to the Trust, Whiting entered into certain costless collar hedge contracts in order to reduce the Trust’s exposure to commodity price volatility. If current market prices are lower than a collar’s price floor when the cash settlement amount is calculated, Whiting receives cash proceeds from the contract counterparty. Conversely, if current market prices are higher than a collar’s price ceiling when the cash settlement amount is calculated, Whiting is required to pay the contract counterparty. Cash settlements relating to these hedges resulted in a gain of $0.7 million for the three months ended September 30, 2011, which had the effect of increasing the average price of natural gas by $1.10 per Mcf for the third quarter of 2011. Cash settlements relating to these hedges resulted in a gain of $1.1 million for the three months ended September 30, 2010, which had the effect of increasing average prices by $0.53 per Bbl of oil and $1.25 per Mcf of natural gas for the third quarter of 2010.
Distributable Income. For the three months ended September 30, 2011, the Trust’s distributable income was $11.4 million and was based on income from net profits interest of $11.7 million less Trust general and administrative costs and cash withheld of $175,000 and Montana state income tax withholdings of $83,766. This compares to distributable income of $10.3 million during the third quarter of 2010, which was based on income from net profits interest of $10.6 million less $250,000 for Trust expenses and $37,181 in Montana state income tax withholdings.
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