Enduro Royalty Trust Announces Special Cash Distribution of Net Proceeds from Permian Basin Divestitures

Enduro Royalty Trust (NYSE: NDRO) (the “Trust”) today announced a
special cash distribution to the holders of its units of beneficial
interest of $1.150005 per unit, payable on October 20, 2017 to
unitholders of record on October 5, 2017. The special distribution
represents net proceeds allocable to Trust unitholders from the
divestiture of certain oil and natural gas properties in the Permian
Basin (the “Divestiture Properties”) that constituted part of the
properties burdened by the Trust’s 80% net profits interest. At a
special meeting of the Trust unitholders on August 30, 2017, the Trust
unitholders approved (i) eight transactions pursuant to which Enduro
Resource Partners LLC (“Enduro”), the sponsor of the Trust, would sell
the Divestiture Properties, (ii) the release of the Trust’s 80% 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 following table displays the aggregate net proceeds from the sales
of the Divestiture Properties and the aggregate net proceeds allocable
to Trust unitholders:

The total proceeds received by Enduro from the Divestiture Properties,
after preliminary closing adjustments, were approximately $49.1 million.
Transaction expenses, including expenses associated with the purchase
and sale agreements as well as expenses associated with the special
meeting of Trust unitholders on August 30, 2017 totaled $766,737. As
previously disclosed, an escrow amount of $750,000 is being held by
Enduro to cover possible indemnification obligations under the purchase
and sale agreements. Any remaining amount held in the escrow after
payment for any indemnities contained in the purchase and sale
agreements will be released and included in the regular monthly
distribution to unitholders within 25 months, or by the end of October
2019.

About Enduro Royalty Trust

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. For additional
information on the Trust, please visit www.enduroroyaltytrust.com.

Forward-Looking Statements and Cautionary Statements

This press release contains statements that are “forward-looking
statements” within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended. All statements contained in this press release,
other than statements of historical facts, are “forward-looking
statements” for purposes of these provisions. These forward-looking
statements include the amount and date of any anticipated distribution
to unitholders and expected expenses, including capital expenditures.
The anticipated distribution is based, in large part, on the amount of
cash received or expected to be received by the Trust from Enduro
Resource Partners with respect to the relevant period. The amount of
such cash received or expected to be received by the Trust (and its
ability to pay distributions) has been and will be significantly and
negatively affected by prevailing low commodity prices, which have
declined significantly, could decline further and could remain low for
an extended period of time. Other important factors that could cause
actual results to differ materially include expenses of the Trust and
reserves for anticipated future expenses. Statements made in this press
release are qualified by the cautionary statements made in this press
release. Neither Enduro Resource Partners nor the Trustee intends, and
neither assumes any obligation, to update any of the statements included
in this press release. An investment in units issued by Enduro Royalty
Trust is subject to the risks described in the Trust’s filings with the
SEC, including the risks described in the Trust’s Annual Report on Form
10-K for the year ended December 31, 2016, filed with the SEC on March
15, 2017. The Trust’s quarterly and other filed reports are or will be
available over the Internet at the SEC’s website at http://www.sec.gov.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170925006316/en/

News by QuoteMedia

www.quotemedia.com