Chesapeake Granite Wash Trust Announces Distribution of $0.0128 Per Common Unit
MWN-AI** Summary
Chesapeake Granite Wash Trust (OTCID: CHKR) has announced a common unit distribution of $0.0128 for the quarter ending December 31, 2025. This distribution, largely based on the trust's royalty interests, will be paid on March 2, 2026, to unitholders recorded by February 19, 2026. The release highlights key figures from the production period of September 1 to November 30, 2025, revealing total sales volumes of 6,000 barrels of oil, 223 million cubic feet of natural gas, and 18,000 barrels of natural gas liquids. The collective production translates into an equivalent of 61,000 barrels of oil.
The average realized prices during this period were $58.10 for oil, $1.65 for natural gas, and $20.88 for natural gas liquids. The calculable distributable income amounting to $597,000 takes into account various financial elements, including production taxes and administrative expenses. With 46,750,000 units outstanding, the resultant income per unit is set at $0.0128.
The trust has previously withheld a portion of earnings to bolster cash reserves, estimating a total of approximately $2.45 million withheld as of December 31, 2025. This strategy aims to ensure sufficient reserves for future expenses, with excess funds anticipated to be distributed to unitholders eventually. As market conditions impact revenues, the trust warns that future distributions may fluctuate in response to changes in production volumes and pricing dynamics.
Investors seeking more detailed insights into the trust's financial performance can consult SEC filings and further information published on the trust's website and OTC Markets.
MWN-AI** Analysis
Chesapeake Granite Wash Trust (OTC: CHKR) has announced a quarterly distribution of $0.0128 per common unit, which reflects the production activities associated with its royalty interests for the period spanning September 1, 2025, to November 30, 2025. Investors should approach this announcement with cautious optimism while remaining vigilant about underlying market dynamics.
The trust's distribution is relatively modest, derived from total cash reserves of $597,000 after accounting for administrative expenses and cash withheld to bolster reserves. This minimal payout highlights the volatility inherent in the energy market, where fluctuations in oil and gas prices directly impact revenue. Recent pricing data indicates that the average price for oil was $58.10 per barrel, while natural gas and natural gas liquids were considerably lower, implying profitability challenges in the current environment.
Moreover, the retention of cash reserves to buffer future uncertainties, which has totaled approximately $2.45 million till the end of the reporting period, underscores a strategic approach to maintaining liquidity amid potential market fluctuations. However, this strategy may cap the immediate returns for unitholders.
Investors should consider broader external factors influencing the energy sector, such as geopolitical tensions and supply chain disruptions, which could further exacerbate price volatility. The current geopolitical landscape, particularly the conflicts in Ukraine and Israel, adds layers of uncertainty that could influence both production capabilities and overall market sentiment.
In summary, while the small distribution indicates a commitment to maintaining investor relations amidst uncertain conditions, potential risks warrant careful consideration. Investors may want to adopt a cautious stance, focusing on long-term resilience, stability in commodity prices, and the trust's ability to navigate external challenges before making additional investments in CHKR.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Chesapeake Granite Wash Trust (OTCID Basic Market: CHKR) (the “Trust”) today announced that its common unit distribution for the quarter ended December 31, 2025 (which primarily relates to production attributable to the Trust’s royalty interests from September 1, 2025 through November 30, 2025) will be $0.0128 per common unit. The distribution will be paid on March 2, 2026 to common unitholders of record at the close of business on February 19, 2026.
The following table provides supporting documentation for the calculation of distributable income available to unitholders for the production period from September 1, 2025 through November 30, 2025.
Sales volumes: | |||||||
Oil (mbbl) | 6 | ||||||
Natural gas (mmcf) | 223 | ||||||
Natural gas liquids (mbbl) | 18 | ||||||
Total oil equivalent volumes (mboe) | 61 | ||||||
Average price received per production unit: (1) | |||||||
Oil | $ | 58.10 | |||||
Natural gas | $ | 1.65 | |||||
Natural gas liquids | $ | 20.88 | |||||
Distributable income calculation (in thousands except per unit income): | |||||||
Revenue less production taxes (1) | $ | 1,005 | |||||
Trust administrative expenses | (309 | ) | |||||
Cash withheld to increase cash reserves (2) | (99 | ) | |||||
Distributable income available to unitholders | $ | 597 | |||||
Calculated distributable income per unit (3) | $ | 0.0128 |
(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 December 31, 2025 $2,450,828 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.
The Trust owns royalty interests in certain oil and natural gas properties in the Colony Granite Wash play in Washita County, Oklahoma. The Trust is entitled to receive proceeds from the sale of production attributable to the royalty interests. As described in the Trust’s filings previously with the Securities and Exchange Commission (the “SEC”) and information about the Trust that is available on the website of the OTC Markets Group Inc. (“OTC Markets”), the amount of Trust revenues and the quarterly distributions to Trust unitholders will fluctuate from quarter to quarter, depending on the sales volume of oil, natural gas liquids and natural gas attributable to the Trust’s royalty interests and the prices received for such sales and the amount of the Trust’s administrative expenses, among other factors.
For additional information regarding the Trust and its results of operations and financial condition, please refer to the Trust’s previous SEC filings through the quarterly period ended September 30, 2024 and the previous OTC filings beginning with the annual period ended December 31, 2024. The Trust’s financial results for the annual period ended December 31, 2025 will be made available on the Investors section of the corporate website at: http://chkgranitewashtrust.com/investors/ and on the OTC Markets website at: https://www.otcmarkets.com/stock/CHKR/disclosure .
ABOUT CHESAPEAKE GRANITE WASH TRUST:
Pursuant to IRC Section 1446, withholding tax on income effectively connected to a U.S. trade or business allocated to foreign partners should be made at the highest marginal rate. Under Section 1441, withholding tax on fixed, determinable, annual, periodic income from U.S. sources allocated to foreign partners should be made at 30% of gross income unless the rate is reduced by treaty. This release is intended to be a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b) by the Trust, and while specific relief is not specified for Section 1441 income, this disclosure is intended to suffice. For distributions made to foreign partners, nominees and brokers should withhold at the highest effective tax rate.
This news release contains statements that are forward-looking statements. All statements contained in this news release, other than statements of historical facts, are forward-looking statements. The anticipated distribution discussed herein is based, in part, on the amount of cash received or expected to be received by the Trust with respect to the relevant quarterly period. Any differences in actual cash receipts by the Trust could affect this distributable amount. Other important factors that could cause actual results to differ materially include the conflicts in Ukraine and Israel and related economic turmoil, expenses of the Trust and reserves for anticipated future expenses. The Trustee neither does not intend, and does not assume any obligation, to update any of the statements included in this news release. An investment in common units issued by the Trust is subject to the risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as other risks identified in the Trust’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K previously filed with the SEC. The Trust’s historical annual, quarterly and other filed reports are available at the SEC’s website at www.sec.gov through the quarterly period ended September 30, 2024 and at the OTC Markets website at https://www.otcmarkets.com/stock/CHKR/dislosure beginning with the annual period ended December 31, 2024. The Trust does not intend, and assumes no obligations, to update any of the statements included in this news release. Further information is available at www.chkgranitewashtrust.com , where the Trust routinely posts announcements, updates, investor information and news releases.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260204161436/en/
TRUSTEE CONTACT INFORMATION:
The Bank of New York Mellon Trust Company, N.A.
Sarah Newell
512-236-6555
sarah.newell@bnymellon.com
FAQ**
How do fluctuations in oil and natural gas prices impact the distribution amounts for Chesapeake Granite Wash Trust Units CHKR, particularly regarding the upcoming $0.0128 distribution payment?
What factors led the Trust to withhold $99,000 to increase cash reserves for Chesapeake Granite Wash Trust Units CHKR, and how might this affect future distributions?
Given the ongoing global conflicts, what impact could external economic factors have on the performance and reliability of Chesapeake Granite Wash Trust Units CHKR?
Can you explain the significance of the Trust's structure and its royalty interests in relation to the revenue generated for unitholders of Chesapeake Granite Wash Trust Units CHKR?
**MWN-AI FAQ is based on asking OpenAI questions about Chesapeake Granite Wash Trust Units (OTC: CHKR).
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