History
Whiting USA Trust II listed in 2012 holding a depleting 90% profits interest in Whiting wells, was delisted in 2016, and wound down after the interest reached its termination trigger in 2021.
2012-2015: A trust built on one asset
Whiting USA Trust II began on March 28, 2012, when its sponsor, Whiting Petroleum Corporation, sold all 18,400,000 trust units at listing on the NYSE under the symbol "WHZ." That figure included the underwriters' over-allotment option, which was exercised in full. In the same closing, Whiting Oil and Gas Corporation conveyed to the Trust a 90% net profits interest, meaning a right to 90% of the profit from its share of more than 1,300 wells in the Permian Basin, Rocky Mountain, Gulf Coast and Mid-Continent regions. This was the Trust's only asset. Whiting Oil and Gas stayed on as operator under an Administrative Services Agreement.
2016-2019: Delisting and a lower profile
The 2015 oil price crash hit the Trust's distributable income, and unit prices fell from an $8.47 high in the first quarter to near $1 by the third. On January 4, 2016, the NYSE warned that the units had averaged below its $1.00 minimum over 30 trading days. The Trust chose not to seek a cure period or a reverse split, to avoid the administrative cost. Instead it allowed delisting, and its units moved to OTC Pink as "WHZT" on January 7, 2016. The record for 2017 to 2019 is quiet.
2020-2022: The wind-down
In the second quarter of 2020, amid the COVID-19 oil price crash, Whiting set aside a $1.6 million reserve, fearing future proceeds might not cover operating costs on the underlying 1,301 gross (364.1 net) wells. It released the reserve unused in the third quarter, while unit prices fell as low as $0.08. The final full annual report, filed March 19, 2021, said the interest would reach its production-based termination trigger, 11.79 million barrels of oil equivalent of cumulative production, by December 31, 2021. The Trust would then wind up and make a final distribution around March 2022. On January 20, 2022, it filed Form 15-12B to deregister its units, with about 64 holders of record, the last administrative step in the planned wind-down.
Written from the 5 story beats below (2012 to 20 Jan 2022), which come from the company's own announcements and filings.