SandRidge Mississippian Trust II is a Delaware statutory trust formed in June 2014 by SandRidge Energy, Inc. The trust was created to acquire and hold overriding royalty interests in certain oil and natural gas properties located in the Mississippian formation of Oklahoma. As a passive, grantor trust, SandRidge Mississippian Trust II does not engage directly in exploration or production activities; instead, it retains nonoperating royalty interests that entitle it to a share of production revenues from underlying working interests.
The trust’s assets consist of overriding royalty interests covering approximately 101,000 net acres in the core of the Mississippian play, primarily concentrated in the Oklahoma Panhandle counties of Beaver, Harper, Woods and Ellis, as well as portions of Garfield and Major counties. Oil and gas production from these properties is conducted by a diversified group of third-party operators, and the trust receives a proportionate share of gross production proceeds, less allowable expenses. Net proceeds are distributed to unitholders on a quarterly basis, with no reinvestment of capital by the trust.
SandRidge Mississippian Trust II is governed by an independent trustee, currently U.S. Bank National Association, which administers trust affairs in accordance with the trust agreement. There are no employees or material operating assets held by the trust, and day-to-day management of the underlying properties remains with the operating partners. SandRidge Energy, the sponsor, provides certain administrative and reporting services under a support agreement, in exchange for an annual fee.
Since its initial public offering, SandRidge Mississippian Trust II has provided investors with direct exposure to mid-continent hydrocarbon production through a royalty interest structure. The trust’s term is designed to continue until the earlier of full depletion of the underlying reserves or October 15, 2024, after which remaining assets will be liquidated and final proceeds distributed to unitholders. This structure offers investors a simple, transparent vehicle to participate in oil and gas cash flows without assuming operational or capital expenditure risks.
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