Enduro Royalty Trust (NYSE: NDRO) noted that, at the special meeting of Trust unitholders held today, unitholders approved (i) eight transactions pursuant to which Enduro Resource Partners LLC (Enduro), the sponsor of the Trust, will sell certain oil and natural gas properties in the Permian Basin (the “Divestiture Properties”) that constitute a portion of the properties burdened by the Trust’s 80% net profits interest, (ii) the release of the Trust’s net profits interest in the Divestiture Properties, and (iii) related proposals to effect the sale transactions in exchange for the Trust receiving 80% of the net proceeds of the sale of the Divestiture Properties.
The votes in favor of the sales of the Divestiture Properties and related proposals constituted more than the required 75% of the Trust units outstanding as of the record date for the special meeting and, as a result, the proposals were approved and adopted by the Trust unitholders.
Closings of the sales of the Divestiture Properties are expected to occur on or before September 30, 2017. Following the closings, Enduro will set a record date for the special distribution and within 45 days of the closings of the transactions, Enduro will distribute 80% of the net proceeds of the aggregate sales amounts, less 80% of the expenses associated with the transactions and proxy meeting expenses and associated holdback amounts, to unitholders of record.
Enduro Royalty Trust is a Delaware statutory trust formed by Enduro Resource Partners to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain of Enduro Resource Partners’ properties in the states of Texas, Louisiana and New Mexico. As described in the Trust’s filings with the Securities and Exchange Commission, the amount of the periodic distributions is expected to fluctuate, depending on the proceeds received by the Trust as a result of actual production volumes, oil and gas prices, the amount and timing of capital expenditures, and the Trust’s administrative expenses, among other factors. Future distributions are expected to be made on a monthly basis.