Chesapeake Granite Wash Trust - CHKR stock
Overview[edit]
Chesapeake Granite Wash Trust (OTC: CHKR) is a company based in Oklahoma that holds royalty interests in oil and natural gas properties. The Trust's primary purpose is to own and manage royalty interests and distribute cash receipts generated from them to its unitholders quarterly until June 2031. The Trust does not engage in operations or activities outside of managing and distributing the income from these royalty interests.[1]
The Bank of New York Mellon Trust Company serves as the trustee for the Trust and oversees its business and affairs. The Trust's main function is to own and manage these royalty interests and to ensure that the unitholders receive their share of the income generated from these interests in a timely and efficient manner. The Trust also performs specific administrative tasks related to managing and maintaining these royalty interests and the Trust units.[1]
Termination[edit]
The Trust is scheduled to dissolve and commence liquidation either on June 30, 2031 (known as the "Termination Date") or earlier based on specific occurrences. Following this, it will wind up its operations and terminate. At the Termination Date, the Operator will automatically regain 50% of the total Royalty Interests it conveyed (known as the "Term Royalties"), while the Trust will keep the remaining 50% (known as the "Perpetual Royalties") and sell them. The funds raised from the sale of the Perpetual Royalties and any leftover Trust cash reserves will be allocated proportionally among the unitholders. The Operator will have the first opportunity to purchase the Perpetual Royalties kept by the Trust at the Termination Date.[2]
Operations[edit]
Chesapeake Granite Wash Trust was established to own and manage royalty interests on behalf of its unitholders. These royalty interests are derived from Chesapeake Energy Corporation's interests in certain oil and natural gas properties in the Colony Granite Wash play in Oklahoma. Chesapeake transferred these royalty interests to the Trust from its holdings in approximately 70 existing horizontal wells, known as Producing Wells, and from its interests in over 120 horizontal development wells, known as Development Wells, that are to be drilled on properties within the Area of Mutual Interest (AMI). The AMI is located in Washita County and is specifically focused on the Colony Granite Wash formation.[3]
Dividends [edit]
Quarterly distributions from the Trust generally include royalties from the sale of oil, natural gas liquids, and natural gas for three months, comprising the first two months of the current quarter and the last month of the preceding quarter. This is due to the timing of when the Trust receives production proceeds. The Trust holds royalty interests in certain oil and natural gas properties in the Colony Granite Wash play in Washita County, Oklahoma, and is entitled to receive a share of the proceeds from the sale of production generated from these interests.[4]
Annual dividend history[5]
| Year | Total of Quarterly Dividends |
|---|---|
| 2022 | $0.278 |
| 2021 | $0.14 |
| 2020 | $0.072 |
| 2019 | $0.162 |
| 2018 | $0.242 |
| 2017 | $0.358 |
| 2016 | $0.419 |
| 2015 | $1.521 |
| 2014 | $2.395 |
| 2013 | $2.717 |
| 2012 | $2.627 |
Accountant Change[edit]
Chesapeake Granite Wash Trust has dismissed Grant Thornton LLP, an independent registered public accounting firm, effective December 9, 2022. The audit report for the Trust's financial statements for the fiscal year ending December 31, 2021, which were prepared in conformity with the adjusted cash basis of accounting, did not contain an adverse opinion or disclaimer of opinion and was not qualified or changed in any way. The audit report was issued by G.T., the Trust's former independent registered public accounting firm.[6]
Financial Results[edit]
| Year Ending | Total Revenue | Net Income | Cash Balance |
|---|---|---|---|
| 12/31/2022 | $15,842,000 | $12,988,000 | $2,564,000 |
| 12/31/2021 | $8,697,000 | $6,540,000 | $2,093,000 |
| 12/31/2020 | $4,947,000 | $3,396,000 | $1,738,000 |
| 12/31/2019 | $9,806,000 | $7,629,000 | $1,600,000 |
- ↑ 1.0 1.1 Chesapeake Granite Wash Trust. Home. Accessed on 12/22/2022.
- ↑ SEC.gov. Chesapeake Granite Wash Trust Form 10-K. March 24, 2023.
- ↑ Investing.com. Equities. Chesapeake Granite Wash Trust. Accessed on 12/22/2022.
- ↑ Business Wire. Chesapeake Granite Wash Trust Announces Distribution of $0.0849 Per Common Unit. August 3 2022.
- ↑ Digrin. CHKR Dividends. Retrieved on 5/2/2023.
- ↑ Market Screener. Chesapeake Granite Wash Trust: Changes in Registrant's Certifying Accountant, Financial Statements and Exhibits (form 8-K). December 15 2022.
OTC Symbol: CHKR | OTC Tier: Pink Current
