Enduro Royalty Trust Announces Monthly Cash Distribution

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AUSTIN, Texas--(BUSINESS WIRE)--

Enduro Royalty Trust NDRO (the "Trust") today announced a cash distribution to the holders of its units of beneficial interest of $0.028057 per unit, payable on December 14, 2016 to unitholders of record on November 30, 2016. The distribution primarily represents oil production during the month of August 2016 and natural gas production during July 2016.

The following table displays underlying oil and natural gas sales volumes and average received wellhead prices attributable to the current and prior month net profits interest calculations.

    Underlying Sales Volumes       Average Price
Oil       Natural Gas Oil     Natural Gas
Bbls     Bbls/D Mcf     Mcf/D (per Bbl) (per Mcf)
Current Month 61,254 1,976 334,973 10,806 $ 41.85 $ 2.47
Prior Month 63,585 2,051 349,412 11,647 $ 41.83 $ 2.04
 

Oil cash receipts for the properties underlying the Trust totaled $2.6 million for the current month, a decrease of $0.1 million from the prior month calculation. The decrease was due to variances in oil production volumes resulting from natural production declines along with payment timing differences related to non-operated wells. Average oil NYMEX pricing remained consistent for the respective periods with August average oil prices at $45.01 per Bbl compared to $45.08 per Bbl in July. Natural gas cash receipts increased from $0.7 million in the prior distribution period to $0.8 million due to a 21 percent increase in the realized wellhead price as compared to the prior month. This increase in realized wellhead price was driven by a seven percent increase in NYMEX pricing, from $2.61 per Mcf to $2.79 per Mcf, combined with a narrowing of the differential from 22 percent to 12 percent.

Total direct operating expenses, including lease operating expenses, production and ad valorem taxes, and gathering and transportation expenses, increased $0.3 million to $2.4 million. Actual capital expenditures incurred have continued to be less than projected, resulting in a capital adjustment during the current month calculation that increased net profits by $0.1 million. Total direct operating expenses and capital expenditures relate to expenses incurred during September 2016.

Enduro Resource Partners, the sponsor of the Trust ("Enduro"), previously established a reserve for approved 2016 development expenses. As a result of lower than anticipated capital expenditures during the year, resulting in reduced expectations for 2016 capital expenditures, Enduro has released an additional $50,000 of the reserve in the current distribution period, thereby increasing the net profits attributable to the Trust. Enduro has a remaining total reserve of $100,000 for approved 2016 development expenses.

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, 2015, filed with the SEC on March 11, 2016. 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.

Enduro Royalty Trust
The Bank of New York Mellon Trust Company, N.A., as Trustee
Sarah Newell, 1 512-236-6555

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Posted In: Press Releases
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