Chesapeake Granite Wash Trust Announces Distribution of $0.0336 Per Common Unit

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HOUSTON, November 06, 2023--(BUSINESS WIRE)--Chesapeake Granite Wash Trust (OTC Markets Group, Inc.:CHKR) (the "Trust") today announced that its common unit distribution for the quarter ended September 30, 2023 (which primarily relates to production attributable to the Trust’s royalty interests from June 1, 2023 through August 31, 2023) will be $0.0336 per common unit. The distribution will be paid on November 30, 2023 to common unitholders of record at the close of business on November 20, 2023.

The following table provides supporting documentation for the calculation of distributable income available to unitholders for the production period from June 1, 2023 through August 31, 2023.

Sales volumes:

Oil (mbbl)

11

Natural gas (mmcf)

359

Natural gas liquids (mbbl)

30

Total oil equivalent volumes (mboe)

101

Average price received per production unit:(1)

Oil

$

71.86

Natural gas

$

1.83

Natural gas liquids

$

15.68

Distributable income calculation (in thousands except per unit income):

Revenue less production taxes(1)

$

1,808

Trust administrative expenses

(136)

Cash withheld to increase cash reserves(2)

(99)

Distributable income available to unitholders

$

1,573

Calculated distributable income per unit(3)

$

0.0336

(1)

Includes the effect of certain marketing, gathering and transportation deductions.

(2)

The Trustee may increase or decrease the targeted amount of the cash reserve at any time, and may increase or decrease the rate at which it is withholding funds to build the cash reserve at any time, without advance notice to the unitholders. Without limiting the foregoing, the Trustee reviewed the adequacy and sufficiency of the existing cash reserve in 2021 and determined to withhold funds otherwise available for distribution to unitholders each quarter to increase existing cash reserves by a total of approximately $3,200,000 over a period of several quarters, commencing with the distribution to unitholders for the fourth quarter 2021 (payable in 2022). As of September 30, 2023 $1,562,078 has been so withheld to increase cash reserves. Cash held in reserve will be invested as required by the Trust Agreement. Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or contingent expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds.

(3)

Based on 46,750,000 common units issued and outstanding.

Due to the timing of the payment of production proceeds to the Trust, quarterly distributions generally include royalties attributable to sales of oil, natural gas liquids and natural gas for three months, including the first two months of the quarter just ended and the last month of the prior quarter.