Hugoton Royalty Trust Announces No Cash Distribution for January 2025
On January 21, 2025, Argent Trust Company, the trustee for the Hugoton Royalty Trust (OTCQB: HGTXU), announced that there would be no cash distribution to the unit holders for January 2025. This decision stems from excess costs associated with the Trust's net profits interests across three conveyances. Notably, the cash reserves of the Trust decreased by $12,000 due to administrative expenses.
The announcement indicates that any future cash distributions will depend on the recovery of net profits in subsequent months. According to the trustee, there are plans to replenish the cash reserves before declaring any future distributions to unitholders. This replenishment might include increased cash reserve totals as evaluated by the trustee.
This month, the report detailed the underlying gas and oil sales along with price averages pertinent to the net overriding royalty. For the current month, the Hugoton Royalty Trust experienced sales volumes of 734,000 Mcf of gas and 12,000 Bbls of oil, priced at $2.81 per Mcf and $66.93 per Bbl, respectively. In contrast, the prior month's distribution reflected sales volumes of 791,000 Mcf of gas and 18,000 Bbls of oil, with average prices of $2.67 and $69.27, respectively.
Additionally, XTO Energy has communicated with the trustee concerning the volume of underlying sales. Approximately 3,000 Bbls and 20,000 Mcf have been attributed to four new non-operated wells in Major County, Oklahoma. Moreover, XTO Energy has accounted for significant development costs, production expenses, and overhead charges affecting the royalty calculation for the current month.
Despite these efforts, XTO Energy has reported increased excess costs impacting the Trust's net profits interests. Specifically, this increase has reached $314,000 for properties in Kansas, accumulating to a total of $1,700,000 in excess costs including accrued interest. Furthermore, Oklahoma's properties have also seen a rise in excess costs by $1,030,000, bringing the total to $2,517,000, while Wyoming properties have reported an excess increase of $145,000, totaling $7,995,000.
In a bid to improve profitability, XTO Energy has chosen to participate in the development of four non-operated wells in Major County, Oklahoma, resulting in charged development costs of $10.4 million, of which $8.3 million is net to the Trust. The completion of two wells is expected in the second quarter of 2023, a third in the fourth quarter of 2023, and the final one in the first quarter of 2024. Updates regarding these developments will be communicated to the investors and interested parties.
For further details about the Hugoton Royalty Trust, its distribution history, and other relevant financial information, stakeholders are encouraged to visit the Trust's official website at www.hgt-hugoton.com. The statements shared in the announcement are forward-looking, indicating that actual outcomes may vary substantially due to fluctuating market conditions and various external influences impacting the oil and gas sector.
The announcement indicates that any future cash distributions will depend on the recovery of net profits in subsequent months. According to the trustee, there are plans to replenish the cash reserves before declaring any future distributions to unitholders. This replenishment might include increased cash reserve totals as evaluated by the trustee.
This month, the report detailed the underlying gas and oil sales along with price averages pertinent to the net overriding royalty. For the current month, the Hugoton Royalty Trust experienced sales volumes of 734,000 Mcf of gas and 12,000 Bbls of oil, priced at $2.81 per Mcf and $66.93 per Bbl, respectively. In contrast, the prior month's distribution reflected sales volumes of 791,000 Mcf of gas and 18,000 Bbls of oil, with average prices of $2.67 and $69.27, respectively.
Additionally, XTO Energy has communicated with the trustee concerning the volume of underlying sales. Approximately 3,000 Bbls and 20,000 Mcf have been attributed to four new non-operated wells in Major County, Oklahoma. Moreover, XTO Energy has accounted for significant development costs, production expenses, and overhead charges affecting the royalty calculation for the current month.
Despite these efforts, XTO Energy has reported increased excess costs impacting the Trust's net profits interests. Specifically, this increase has reached $314,000 for properties in Kansas, accumulating to a total of $1,700,000 in excess costs including accrued interest. Furthermore, Oklahoma's properties have also seen a rise in excess costs by $1,030,000, bringing the total to $2,517,000, while Wyoming properties have reported an excess increase of $145,000, totaling $7,995,000.
In a bid to improve profitability, XTO Energy has chosen to participate in the development of four non-operated wells in Major County, Oklahoma, resulting in charged development costs of $10.4 million, of which $8.3 million is net to the Trust. The completion of two wells is expected in the second quarter of 2023, a third in the fourth quarter of 2023, and the final one in the first quarter of 2024. Updates regarding these developments will be communicated to the investors and interested parties.
For further details about the Hugoton Royalty Trust, its distribution history, and other relevant financial information, stakeholders are encouraged to visit the Trust's official website at www.hgt-hugoton.com. The statements shared in the announcement are forward-looking, indicating that actual outcomes may vary substantially due to fluctuating market conditions and various external influences impacting the oil and gas sector.
Topics Financial Services & Investing）
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