Item 1.01 Entry into a Material Definitive Agreement
On September 22, 2021, Kiewit Royalty Trust (the "Trust") commenced the auction
process with EnergyNet to offer for sale the Trust's non-producing overriding
royalty interests ("ORRI") located in Big Horn County, Montana (the "Decker
Mines") and Sweetwater County, Wyoming (the "Black Butte Mine"). EnergyNet
developed and hosted the online auction to facilitate the sale of the Trust's
ORRI. On September 29, 2021, Spartan Energy Acquisitions, LLC ("Spartan") of
Denver, Colorado was the successful bidder in the EnergyNet auction and has
agreed to purchase the ORRI in the Decker Mines and Black Butte Mine. The
transfer of these ORRIs is subject to various closing conditions, including
either court approval or Unit Holder approval of the transaction. After the
satisfaction of the closing conditions, the Trust has agreed to convey to
Spartan the ORRIs in exchange for a total cash value of $12,510. Closing is
expected in late 2021 or early 2022.
Item 2.02 Completion of Acquisition or Disposition of Assets
The information set forth in Item 1.01 of this current report on Form 8-K is
incorporated by reference herein.
Item 8.01 Other Events.
Because the auction was successful, the Trust intends to petition the County
Court in the County of Douglas, State of Nebraska in October 2021 in order to
liquidate all of the Trust assets and wind up the operations of the Trust
pursuant to the terms of the Trust Indenture. The Trust believes that it will
not receive any additional royalty payments and without such payments cannot
continue operating.
Forward-Looking Statements
This current report on Form 8-K and exhibit may contain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and
made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, as amended. Such forward-looking statements are based on
information presently available to the Trust's management and are current only
as of the date made. Actual results could also differ materially from those
anticipated as a result of a number of factors, including, but not limited to,
those discussed in the Trust's Annual Report on Form 10-K for the year ended
December 31, 2020 and Quarterly Report on Form 10-Q for the period ended June
30, 2021. For those reasons, undue reliance should not be placed on any
forward-looking statement. The Trust assumes no duty or obligation to update or
revise any forward-looking statement, although it may do so from time to time as
management believes is warranted or as may be required by applicable securities
law. Any such updates or revisions may be made by the registrant by filing
reports with the U.S. Securities and Exchange Commission, through the issuance
of press releases or by other methods of public disclosure.
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