Chesapeake Granite Wash Trust (NYSE:CHKR) owns royalty interests in oil, natural gas liquids and natural gas properties located in Washita County, Oklahoma, which were conveyed to the Trust by Chesapeake Energy Corporation (NYSE:CHK). These royalty interests entitle the Trust to receive, after the deduction of post-production expenses and taxes:
- 90% of the proceeds attributable to Chesapeake Energy Corporation’s net revenue interest in the sale of production from 69 horizontal producing wells; and
- 50% of the proceeds attributable to Chesapeake’s net revenue interest in the sale of production from 118 horizontal development wells to be drilled by Chesapeake Energy Corporation within a defined Area of Mutual Interest (AMI).
The Trust will make quarterly distributions of the cash receipts attributable to the royalty interests, after deducting the Trust’s expenses, through the quarter ending June 30, 2031.
The business and affairs of the Trust are managed by The Bank of New York Mellon Trust Company, N.A., as trustee.