SandRidge Permian Trust: Solid Results, Fairly Valued
- SandRidge Permian Trust announced a quarterly distribution on July 31st of $0.632 for common unit holders.
- Distributable income for the quarter was $30.6M, which on a fully diluted per unit basis was below threshold, so subordinated units received only $0.432 per unit.
- Production for the quarter was in-line with previous models published at 382 MBOE, virtually flat year over year reflecting drilling activity that has replaced production from declining older wells.
- Trust drilling is expected to complete by the end of the 4th quarter 2014.
- The August 1st Trust market price level of $12.66 is considered fair and implies a 9% rate of return to investors through Trust termination in 2031.