Executive Summary

CHKR declared a Q2 2019 distribution of $0.0323 per common unit, paid August 29, 2019 to holders of record August 19, 2019 . Sequentially, this was up vs Q1 2019 ($0.0303) but well below Q4 2018 ($0.0631) .
Revenue less production taxes was $2.026M in Q2 2019, down vs $2.328M in Q1 2019, as natural gas prices fell sharply; distributable income rose sequentially to $1.511M due to lower administrative expenses .
The Trustee continued withholding $70,000 to build cash reserves (target ≈$850,000), which reduces quarterly distributions versus a no-withholding scenario .
No Q2 2019 earnings call transcript was found; coverage appears limited, and Wall Street consensus estimates via S&P Global were unavailable for comparison in this review window [functions.GetEstimates error].

What Went Well and What Went Wrong

What Went Well

Sequential increase in distribution per unit to $0.0323 from $0.0303, supported by a reduction in administrative expenses from $841K in Q1 to $445K in Q2 .
Oil realized price improved to $54.68/bbl in Q2 from $46.43/bbl in Q1, partially offsetting commodity headwinds .
Operational stability: sales volumes for oil (23 mbbl) and NGL (48 mbbl) were broadly consistent with Q1 (oil 23 mbbl, NGL 45 mbbl), indicating steady production attributable to royalty interests .

What Went Wrong

Revenue less production taxes declined to $2.026M in Q2 vs $2.328M in Q1, primarily driven by a collapse in natural gas realized price to $0.47/mcf from $1.34/mcf .
Total oil-equivalent volumes slipped to 156 mboe in Q2 vs 158 mboe in Q1, contributing to lower top-line royalty proceeds .
Continued cash reserve withholding ($70K) and administrative expenses ($445K) reduce distributable income to unitholders relative to gross royalty proceeds; withholding policy aims to build ~$850K reserve over time .

Financial Results

Note: CHKR is a royalty trust and does not report GAAP EPS; distribution per unit is used as the payout metric. “Revenue less production taxes” is the proxied top-line figure provided in press releases.

Metric	Q4 2018	Q1 2019	Q2 2019
Revenue less production taxes ($USD Thousands)	$3,122	$2,328	$2,026
Trust administrative expenses ($USD Thousands)	$63	$841	$445
Cash withheld for reserves ($USD Thousands)	$107	$70	$70
Distributable income ($USD Thousands)	$2,952	$1,417	$1,511
Distribution per common unit ($USD)	$0.0631	$0.0303	$0.0323

KPIs: Sales Volumes and Realized Prices

KPI	Q4 2018	Q1 2019	Q2 2019
Oil sales volume (mbbl)	25	23	23
Natural gas sales volume (mmcf)	618	546	515
NGL sales volume (mbbl)	51	45	48
Total oil-equivalent volumes (mboe)	179	158	156
Avg realized oil price ($/bbl)	$61.22	$46.43	$54.68
Avg realized natural gas price ($/mcf)	$1.09	$1.34	$0.47
Avg realized NGL price ($/bbl)	$23.02	$16.30	$14.49

Estimates comparison: Wall Street consensus via S&P Global was unavailable during this review window, so no beat/miss assessment can be provided.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly distribution (policy)	Ongoing	No formal guidance provided	No formal guidance provided	Maintained (no guidance)
Cash reserves withholding policy	Starting 1Q19 distributions	Withhold ≥$70K or 3.5% per quarter until ≈$850K total	Continued $70K withheld in Q1 and Q2; Trustee may adjust without advance notice	Maintained (continued implementation)

No explicit revenue, margin, OpEx, tax rate, or dividend guidance ranges are provided by the Trust in these periods .

Earnings Call Themes & Trends

No Q2 2019 earnings call transcript was found, and CHKR typically provides quarterly distribution press releases rather than conducting calls.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2019)	Trend
Commodity price sensitivity	Q4 2018 noted lower sales volumes and realized prices vs initial estimates; oil $61.22, gas $1.09, NGL $23.02	Oil realized price improved to $54.68; gas price fell to $0.47; NGL declined to $14.49	Mixed: oil improved vs Q1; gas/NGL weaker
Administrative expenses	Q1 2019 admin expenses elevated at $841K, impacting distributable income	Admin expenses declined to $445K, aiding sequential distributable income	Favorable normalization vs Q1
Cash reserve withholding	Policy initiated with first quarter 2019 distributions; $107K withheld in Q4 2018 payout; $70K in Q1	$70K withheld again; Trustee may adjust without notice	Ongoing implementation
Volumes	Q4 2018 179 mboe; Q1 2019 158 mboe	Q2 2019 156 mboe	Slight decline sequentially

Management Commentary

“Chesapeake Granite Wash Trust… announced that its common unit distribution for the quarter ended June 30, 2019… will be $0.0323 per common unit. The distribution will be paid on August 29, 2019…” .
“Commencing with the distribution to unitholders payable in first quarter 2019, the Trustee intends to begin withholding the greater of $70,000 or 3.5% of the funds otherwise available for distribution each quarter to gradually increase existing cash reserves by a total of approximately $850,000… The Trustee may increase or decrease the targeted amount at any time…” .
“Due to the timing of the payment of production proceeds to the Trust, quarterly distributions generally include royalties attributable to sales… for three months, including the first two months of the quarter just ended and the last month of the prior quarter.” .

Q&A Highlights

No earnings call transcript was found for Q2 2019; therefore, no Q&A highlights or guidance clarifications are available for this period [functions.ListDocuments result; 0 transcripts].

Estimates Context

Wall Street consensus estimates via S&P Global for Q2 2019 were not retrievable in this review window; as a result, we cannot present a formal beat/miss vs consensus for revenue or EPS (distribution per unit) [functions.GetEstimates error]. Values retrieved from S&P Global were unavailable due to request limit; no alternative consensus source was identified in the documents .

Key Takeaways for Investors

Sequential payout improvement: Q2 distribution rose to $0.0323/unit from $0.0303/unit, aided by lower admin expenses, despite weaker revenue less production taxes and gas/NGL prices .
Commodity exposure remains the primary driver: oil price improvement helped, but gas price collapse to $0.47/mcf pressured top-line royalty proceeds; monitor commodity mix and price trajectory .
Ongoing reserve withholding: $70K per quarter reserve build continues to dampen distributable income; Trustee retains flexibility to change amounts without notice .
Limited disclosure cadence: CHKR provides distribution releases rather than full earnings packages or calls; investors should track volumes, realized prices, and admin costs in quarterly press releases for trend analysis .
Watch admin expense normalization: the drop to $445K in Q2 from $841K in Q1 was a key swing factor supporting sequential distribution; sustained control would be supportive for payouts .
Absence of guidance and consensus: lack of formal guidance and unavailable consensus estimates heighten the importance of commodity price monitoring and cost tracking to anticipate distribution changes [functions.GetEstimates error].
Near-term positioning: expectations for future distributions should incorporate reserve withholding policy and commodity price volatility; sequential changes will largely reflect realized price movements and administrative expense trends .

CHESAPEAKE GRANITE WASH TRUST (CHKR)·Q2 2019 Earnings Summary