SandRidge Mississippian Trust I Announces Quarterly Distribution

  SandRidge Mississippian Trust I Announces Quarterly Distribution

Business Wire

AUSTIN, Texas -- July 25, 2013

SANDRIDGE MISSISSIPPIAN TRUST I (NYSE: SDT) today announced a quarterly
distribution for the three-month period ended June 30, 2013 (which primarily
relates to production attributable to the Trust’s interests from March 1, 2013
through May 31, 2013) of $16.9 million, or $0.6112 per Common Unit and $0.5835
per Subordinated Unit. The Trust makes distributions on a quarterly basis
approximately 60 days after the end of each quarter. The distribution is
expected to occur on or before August 29, 2013 to holders of record as of the
close of business on August 14, 2013.

During the three-month production period ended May 31, 2013, total sales
volumes were higher than initial Trust estimates. This was due to higher
natural gas volumes but was partially offset by lower oil production during
the period. Although the gas production came in higher than projected, the
additional production was offset by lower realized gas prices than initial
estimates. The combination of lower oil production and lower realized gas
prices resulted in quarterly income available for distribution of $0.6043 per
unit, which is $0.0069 below the subordination threshold. As a result, the
distribution per common unit is the subordination threshold of $0.6112 for the
period. Additionally, as of May 31, 2013, SandRidge had fulfilled its
development agreement by drilling approximately 124 development wells. As a
result, there will be no more development wells drilled for the Trust in
future periods.

The Trust owns royalty interests created from interests held by SandRidge
Energy, Inc. (“SandRidge”) and its subsidiaries in oil and natural gas
properties in the Mississippian formation in Alfalfa, Garfield, Grant, Major
and Woods counties in Oklahoma and is entitled to receive proceeds from the
sale of production attributable to the royalty interests. As described in the
Trust’s filings with the Securities and Exchange Commission (the “SEC”), the
amount of the quarterly distributions is expected to fluctuate from quarter to
quarter, depending on the proceeds received by the Trust as a result of actual
production volumes, oil and natural gas prices and the amount and timing of
the Trust’s administrative expenses, among other factors. Although there is no
assurance of any minimum distribution in any quarterly period, during the
subordination period (as described in the Trust’s filings), holders of Common
Units will be entitled to receive an amount up to the “Subordination
Threshold” (which varies from quarter to quarter) prior to any distribution
being made for that quarter in respect of the Subordinated Units, all of which
are held by SandRidge. If the amount available for distribution in any
quarterly period is sufficient to distribute an amount equal to the
Subordination Threshold to the holders of all units (including the
Subordinated Units), any additional balance is distributed to holders of all
units pro rata, up to the amount of the Incentive Threshold for the quarter.
Trust units are entitled to receive 50% of any cash available for distribution
in excess of the Incentive Threshold for the quarter. The Trust’s quarterly
income available for distribution to all Trust units was $0.6043 per unit,
which was below the Subordination Threshold for the Common Units of $0.6112
per unit for the quarter. As a result, the distribution to the Subordinated
Units was decreased to $0.5835 per unit in order to permit a distribution per
Common Unit equal to the Subordination Threshold for the quarter.

Volumes, price and distributable income available to unitholders for the
period were (dollars in thousands, except per unit):

Sales Volumes                                                   
Oil (MBbl) (1)                                                          137
Gas (MMcf)                                                              1,337
Combined (MBoe)                                                         359
Average Price
Oil (per Bbl) (1)                                                     $ 85.87
Gas (per Mcf)                                                         $ 4.04
Average Price - including impact of derivative settlements
and post-production expenses
Oil (per Bbl) (1)                                                     $ 93.78
Gas (per Mcf)                                                         $ 3.55
Royalty income                                                        $ 17,136
Derivative settlements                                                  1,133
Expenses                                                                1,349
Distributable income available to unitholders                         $ 16,920
Distributable income per Common Unit (21,000,000 units                $ 0.6112
issued and outstanding)
Distributable income per Subordinated Unit (7,000,000 units           $ 0.5835
issued and outstanding)

(1)  Includes natural gas liquids.

In addition to wells that were producing at the effective date of the
assignment of the royalty interests to the Trust, SandRidge, pursuant to a
development agreement with the Trust, was obligated to drill, or cause to be
drilled, the equivalent of 123 development wells, determined by reference to
SandRidge’s net revenue interest in a well and the perforated length of the
well, in an area of mutual interest by December31, 2015. As of May 31, 2013,
SandRidge had drilled approximately 124 development wells and met its
obligation under the development agreement.

Equivalent development wells producing, or drilled and perforated for
completion, during production periods upon which distributions are based are
as follows:

                 Equivalent              Additional            Total
As of         Producing            Drilled            Development
                 Development Wells       Development           Wells
5/31/2011        16.4                    3.3                   19.7
8/31/2011        36.5                    1.2                   37.7
11/30/2011       48.5                    0.4                   48.9
2/29/2012        60.6                    1.1                   61.7
5/31/2012        72.5                    0.7                   73.2
8/31/2012        88.7                    0.0                   88.7
11/30/2012       101.1                   1.5                   102.6
2/28/2013        112.1                   4.6                   116.7
5/31/2013        124.3                   0.0                   124.3

*Equivalent development wells that are not producing at the ‘As of’ date but
have been drilled and perforated for completion.

On June 30, 2014, which is the end of the fourth full calendar quarter
following SandRidge’s satisfaction of its drilling obligation with respect to
the Trust Development Wells, the Subordinated Units will automatically convert
into Common Units, after which time the Common Units will no longer have the
protection of the Subordination Threshold, and all Trust unitholders will
share on a pro rata basis in the Trust’s distributions.

Pursuant to IRC Section 1446, withholding tax on income effectively connected
to a United States 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 United States sources
allocated to foreign partners should be made at 30% of gross income unless the
rate is reduced by treaty. This is intended to be a qualified notice by
SandRidge Mississippian Trust I to nominees and brokers as provided for under
Treasury Regulation Section 1.1446-4(b), and while specific relief is not
specified for Section 1441 income, this disclosure is intended to suffice.
Nominees and brokers should withhold at the highest marginal rate, currently
39.6% for individuals, on the distribution made to foreign partners.

This press release contains statements that are “forward-looking statements”
within the meaning of Section21E 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 unit holders. The anticipated distribution is
based, in part, on the amount of cash received or expected to be received by
the Trust from SandRidge with respect to the relevant 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 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 SandRidge nor the Trustee
intends, and neither assumes any obligation, to update any of the statements
included in this press release. An investment in Common Units issued by
SandRidge Mississippian Trust I is subject to the risks described in the
Trust’s Annual Report on Form 10-K for the year ended December31, 2012, and
all of its other filings with the SEC. The Trust’s quarterly and other filed
reports are or will be available over the Internet at the SEC’s web site at


SandRidge Mississippian Trust I
The Bank of New York Mellon Trust Company, N.A., as Trustee
Sarah Newell, 1-512-236-6531
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