WHZ - Whiting USA Trust II (NYSE Stock)

[BadThad]

The new trust which replaces the older WHX is alive and trading since 23MAR2012. Obviously, no dividend has been paid yet but the first one should be nearing. Once it catches on, it should be another good play on Whiting.

Whiting USA Trust II (the Trust) is a statutory trust. It will own a term net profits interest in oil and gas producing properties located in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent regions of the United States. These producing properties are owned by Whiting Oil and Gas Corporation, which is a subsidiary of Whiting Petroleum Corporation (Whiting). The term net profits interest (NPI) entitles the Trust to receive 90% of the net proceeds attributable to Whiting’s interest in the sale of oil and gas production from these properties. The underlying properties consist of Whiting’s net interests in certain oil and natural gas producing properties and include interests in 1,300 gross producing wells located in 49 fields located in 10 states. The business and affairs of the trust will be managed by The Bank of New York Mellon Trust Company, N.A. as trustee. Wilmington Trust, National Association will also act as Delaware trustee of the trust.

http://www.google.com/finance?q=NYSE%3AWHZ#

Current stock price: $23.35

[BadThad]

Today's News, May 1, 2012
7:55a Whiting USA Trust II Started At Mkt Perform By Raymond James >WHZ

I'm still trying to wrap my head around this stock. It's been moving up today but I don't know why. From what I understand, it will not begin paying dividends until WHX has expired....which is still at least a year away last I read. I don't see how they could afford to pay dividends to BOTH trusts. The average volume has been 265k shares/day!

Current stock price: $23.43

[Borse]

I've been following WHX for quite awhile and it seems to have a mind of its own as well!

Goes up for no logical reason and down for no logical reason (that I can think of). But it does always go up around dividend time. WTI crude will go up, but WHX down. Or the stock market in general will tank, but WHX goes up.

On the Google finance main page they have the various sectors and how they are doing. Basic Materials, Capital Goods, Conglomerates... Energy, etc. It seems WHX, WHZ, and WLL do go up down along with the Energy sector, but I just started watching this.

It is like somebody says "OK, today Energy up!" (Then everything energy related goes up.) Or "OK, today Energy down!" (Then everything energy related goes down.)

Where is this "voice"???? (SO much energy related news and data, which is it???)

Then WHZ is lacking the yield on its stock chart and perhaps because of that is lacking the runup we see with WHX?

Anyway get out your popcorn and watch the coming show! The dividend announcement should be out soon for WHX. It will be interesting to see what happens with both WHX and WHZ.

If there is no dividend for WHZ, then I would imagine it would remain pretty stable whereas WHX should go up.

But I am seeing selling when it goes up, so then it goes back down. I'm wondering if some of the big boys are moving to the new toy WHZ and that will be the new playground?

[BadThad]

LOL, yea, I have no idea other than the up/down swings caused by the dividend payouts. There doesn't seem to be much institutional interest in the stock, it's only about 3-4%, which surprizes me with the fat divy. That said, it's not a "growth stock" at all so I guess they stay away since they can't reap huge gains in the PPS.

For me, it's one of the best stocks I've ever played. At least 4x a year I play the up and down and rake in tons of cash.....I've even snagged quite a few divy payouts. It's been NOTHING BUT GREEN for me the whole way. It's pretty much guaranteed cash if you play it right.

[BadThad]

First payout!

Whiting USA Trust II Announces Trust Quarterly Distribution
4:30p ET May 7, 2012 (Business Wire) Whiting USA Trust II (NYSE: WHZ) announced the first Trust distribution in 2012, which relates to net profits generated during the first quarterly payment period of 2012.

Unitholders of record on May 20, 2012 (which results in an actual effective record date of May 18, 2012 due to the 20th of May falling on a non-trading day) will receive a distribution amounting to $17,563,791 or $0.954554 per unit, which is payable on or before May 30, 2012.

As explained in the prospectus for the initial public offering of the Trust units, the first quarterly 2012 distribution includes crude oil sales for the months of January through a portion of March 2012, and natural gas and natural gas liquids for the months of January through a portion of February 2012, due to the time lag in receiving oil, natural gas and natural gas liquids sales proceeds that causes sales for some months in a quarter to not be paid out until the next quarter's distribution. Likewise, the first quarterly distribution will not include production taxes relating to a full three months of oil, natural gas and natural gas liquids sales proceeds as well. In addition, the first quarterly 2012 distribution does not include a full three months of lease operating expenses and development costs due to the time lag in receiving and processing invoices for oil field goods and services received during the first quarter of 2012. All future quarterly distributions will generally relate to production of oil, natural gas and natural gas liquids for a three month period and will generally include three months of production taxes, lease operating expenses and development costs.

The net profits interest represents the right to receive 90% of the net proceeds from Whiting Petroleum Corporation's interests in certain existing oil and natural gas properties located primarily in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent regions of the United States. The net profits interest will terminate on the later to occur of (1) December 31, 2021, or (2) the time when 11.79 MMBOE have been produced from the underlying properties and sold (which amount is equivalent to 10.61 MMBOE attributable to the net profits interest), and the Trust will soon thereafter wind up its affairs and terminate, after which it will pay no further distributions.

Current stock price: $22.70

A rough calculation using this dividend puts the return at 16.8%.

[Borse]

WHZ is going down and WHX is going up! Go figure?

Energy as a whole is having an up day. WLL up as well.

[Borse]

WHZ dipped down to $18.14 this morning. Now at $18.25.

WTI Crude is down a dollar to $78.69.

The bargain hunter in me says buy, buy, buy... But I don't know if the oil biz has hit bottom quite yet?

Anyone have a good crystal ball?

[BadThad]

Thanks for rebooting this....I might just get in very soon. I've been waiting for the PPS to come down so the yield looks even better.

Current stock price: $18.24 (20.5% yield)

[Borse]

I've been poking around on this crude oil price thing and I'm hearing it might go lower even into 2013.

Also WLL was recently downgraded from a “strong-buy” rating to an “outperform".
http://www.dailypolitical.com/financ...-james-wll.htm

So I'm thinking WHZ will go a bit lower. (In one of these bad news blips.)

[BadThad]

Originally Posted by Borse

I've been poking around on this crude oil price thing and I'm hearing it might go lower even into 2013.

Also WLL was recently downgraded from a “strong-buy” rating to an “outperform".
http://www.dailypolitical.com/financ...-james-wll.htm

So I'm thinking WHZ will go a bit lower. (In one of these bad news blips.)

Of course, it will be hard to say, lower or higher. You also have to consider your investing horizon. Are you a long termer or just looking for a short term play. I'm going to probably open a position tomorrow if this continues down, I'll start small and add if it continues to drop. The yield is just too huge to ignore!

The main drawback of this stock as it relates to the price of oil, is that the yield will likely drop as it's essentially a "profit sharing" divy. However, I suspect it will probably never fall below about 15-16%. Regardless, the divy will be around for quite a few years so a long term investor can ignore the day to day fluctuations, sit back, and collect a VERY healthy yield. That's more of what I'm into.