Profile: Whiting USA Trust (WHX)
23 Jan 2015
Whiting USA Trust I is a statutory trust formed by Whiting Petroleum Corporation (Whiting), an oil exploration and production company. It is formed under the Delaware Statutory Trust Act, pursuant to a trust agreement among Whiting Oil and Gas, a subsidiary of Whiting, as trustor; The Bank of New York Mellon Trust Company, N.A., formerly The Bank of New York Trust Company, N.A., as trustee, and Wilmington Trust Company as Delaware Trustee.
The Trust acquires and holds the term net profits interest (NPI) for the benefit of the Trust unitholders pursuant to a conveyance to the Trust from Whiting Oil and Gas. The NPI is the only asset of the Trust, other than cash held for Trust expenses. The NPI is passive in nature, and the Trustee has no management control over and no responsibility relating to the operation of the underlying properties. The NPI entitles the Trust to receive 90% of the net proceeds from the sale of 9.11 million barrels of oil equivalent (MMBOE) (8.20 MMBOE at the 90% NPI) of production from the underlying properties. The business and affairs of the Trust are administered by the Trustee, and Whiting and its affiliates have no ability to manage or influence the operations of the Trust. The oil and gas properties comprising the underlying properties for which Whiting is designated the operator are operated by Whiting and its subsidiaries on a contract operator basis.
Pursuant to the terms of the conveyance creating the NPI, Whiting markets, or has the cause to be marketed, the oil, natural gas and natural gas liquid production attributable to the underlying properties. Whiting markets its oil and natural gas production to end users, marketers and other purchasers that have access to nearby pipeline facilities. In areas where there is no practical access to pipelines, oil is trucked to storage facilities.
The underlying properties consist of Whiting’s net interests in certain oil and natural gas producing properties, as of December 31, 2013, of the conveyance of the NPI to the Trust, which are located in the Rocky Mountains, Mid-Continent, Permian Basin and Gulf Coast regions of the United States. The underlying properties include interests in 3,062 gross (351.6 net) producing oil and natural gas wells located in 166 fields on 206,919 gross (72,033 net) acres in 14 states. Whiting has acquired interests in these properties through various acquisitions that have occurred during its 28 year existence prior to the conveyance. As of December 31, 2013, the net production attributable to the underlying properties is 1,133 thousand barrels of oil equivalent (MBOE) or 3.1 MBOE per day (MBOE/d). Whiting operates 60% of the underlying properties, as of December 31, 2013.F781
Whiting USA Trust
919 Congress Avenue, Suite 500