March 22 Whiting Petroleum Corp said it
priced its initial public offering of 16 million units in
Whiting USA Trust II at $20 per trust unit, the midpoint of its
At the IPO price, the trust raised $320 million from the
offering. It had expected to sell 16 million trust units at $19
to $21 each.
The trust was formed in December by Whiting Petroleum to own
a non-operating stake in certain predominantly producing
properties in the Rocky Mountains, Permian Basin, Gulf Coast and
Mid-Continent regions of the United States.
Natural gas producers grappling with plummeting prices and
rising drill costs have been raising funds by selling investors
access to some of their wells through Royalty Trusts, which pay
little or no tax.
In January, SandRidge Energy filed for an IPO of up
to $603.75 million for its SandRidge Mississippian Trust II,
after the successful debut of SandRidge Mississippian Trust I.
The proceeds from Whiting USA Trust II's IPO will be used to
Raymond James and Morgan Stanley were the offering's lead
The trust units are expected to start trading on Friday on
the New York Stock Exchange under the symbol "WHZ."