Shares of Whiting USA Trust (
) are down another 14% today after Galbraith Global Investment
Management issued a warning today that WHX current unit price does
not reflect what Galbraith believes is the inherent value of
As a holder of a short position in WHX, Galbraith believes that
the market has failed to recognize the fact that WHX expects to
make only 9 more quarterly distributions, and to terminate in
August 2015 with no residual value.
WHX was formed to acquire and hold a term net profits interest (
)in various oil and natural gas properties for the benefit of its
unit holders. The NPI entitles WHX to receive 90% of the net
proceeds from the sale of a total of 9.11 million barrels of oil or
oil equivalent. To date, WHX has distributed proceeds from 6.78
million barrels of oil, leaving 2.33 million barrels of oil
available for the Trust to distribute. WHX has no assets besides
the NPI in the remaining oil. Once the remaining oil has been
produced and sold, WHX will terminate and have no residual
Since last Wednesday, the stock has fallen from around $9.40.
WHX last traded at $5.94, above a day low $5.66 but at the lower
end of its 52-week range of $4.35 to $18.57.