HUGOTON ROYALTY TRUST DECLARES NO DECEMBER CASH DISTRIBUTION

In This Article:

DALLAS, Dec. 20, 2024 /PRNewswire/ -- Argent Trust Company, as Trustee of the Hugoton Royalty Trust (the "Trust") (OTCQB: HGTXU) announced today there would not be a cash distribution to the holders of its units of beneficial interest for December 2024 due to the excess cost positions on all three of the Trust's conveyances of net profits interests. The Trust's cash reserve was reduced by $15,000 for the payment of Trust expenses. To the extent net profits income is received in future months, the Trustee anticipates replenishing the cash reserve prior to declaring any future distributions to unitholders. Replenishment of the cash reserve may include any increase in the cash reserve total, as determined by the Trustee. The following table shows underlying gas and oil sales and average prices attributable to the net overriding royalty for both the current month and prior month. Underlying gas and oil sales volumes attributable to the current month were primarily produced in October.



Underlying Sales





Volumes (a) 


Average Price



Gas

(Mcf)


Oil

(Bbls)


Gas

(per Mcf)


Oil

(per Bbl)


Current Month Distribution


791,000


18,000


$2.67


$69.27


Prior Month Distribution


648,000


12,000


$2.68


$67.67

(a) Sales volumes are recorded in the month the Trust receives the related net profits income.
      Because of this, sales volumes may fluctuate from month to month based on the timing of cash receipts.

XTO Energy has advised the Trustee that it has included underlying sales volumes of approximately 5,000 Bbls and 40,000 Mcf from four new non-operated wells drilled in Major County, Oklahoma and has deducted development costs of $54,000, production expense of $1,773,000, and overhead of $941,000 in determining the royalty calculation for the Trust for the current month.

Excess Costs
XTO Energy has advised the Trustee that excess costs increased by $128,000 on properties underlying the Kansas net profits interests. Underlying cumulative excess costs remaining on the Kansas net profits interests total $1,377,000, including accrued interest of $114,000.

XTO Energy has advised the Trustee that $329,000 of excess costs were recovered on properties underlying the Oklahoma net profits interests. However, after the partial recovery, there were no remaining proceeds from the properties underlying the Oklahoma net profits interests to be included in the current month's distribution. Underlying cumulative excess costs remaining on the Oklahoma net profits interests total $1,477,000, including accrued interest of $383,000.