Enduro Royalty Trust is an oil trust. It gets 80% of the net oil and gas profits from some fields in the Permian Basin located in New Mexico, Louisiana, and Texas. It currently trades for about $3.50/share and there are 33 million shares outstanding.
Here's the historical distributions along with the average oil price http://ift.tt/2rbNWhy
Year Distribution Average Oil Price (WTI $ per barrel) 2017 $0.15 (YTD) $51.59 2016 $0.241953 $43.15 2015 $0.380602 $48.66 2014 $0.79525 $93.25 2013 $1.46373 $97.98 2012 $1.750458 $94.05
The paid out royalties lag by several months. (Money earned in February is paid out in May.) Also the distribution is currently about 2/3 oil money and 1/3 gas money. So natural gas prices have a significant effect on the distributions also.
The special situation is that the trust just announced they are selling some mostly undeveloped acreage in their fields. The part they are selling accounted for 2% of the sales volume in 2016 and accounts for 2.5% of the reserves in the trust.
The total purchase price is $50.4 million with an anticipated net of $40 million to the trust, or about $1.20 per share.
So check out $NDRO if you want exposure to oil and gas. Current yield is about 9% and you should get a special one time 30% distribution when the sale closes.
The primary downside to owning this is that you need to file state income tax in Louisiana and New Mexico. Texas does not have a state income tax.
Submitted June 12, 2017 at 04:00PM by ron_leflore http://ift.tt/2slJz7Y
