{"id":402865,"date":"2020-12-18T09:33:15","date_gmt":"2020-12-18T14:33:15","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=402865"},"modified":"2020-12-18T09:33:15","modified_gmt":"2020-12-18T14:33:15","slug":"hugoton-royalty-trust-declares-no-december-cash-distribution","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/","title":{"rendered":"Hugoton Royalty Trust Declares No December Cash Distribution"},"content":{"rendered":"<div class=\"xn-newslines\">\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">DALLAS<\/span>, <span class=\"xn-chron\">Dec. 18, 2020<\/span> \/PRNewswire\/ &#8212;\u00a0Simmons Bank, as Trustee of the Hugoton Royalty Trust (OTCQB:HGTXU) (the &#8220;Trust&#8221;), today declared there would not be a cash distribution to the holders of its units of beneficial interest for <span class=\"xn-chron\">December 2020<\/span> due to the excess cost positions on all three of the Trust&#8217;s conveyances of net profits interests. The following table shows underlying gas sales and average prices attributable to the net overriding royalty for both the current month and prior month. Underlying gas sales volumes attributable to the current month were primarily produced in October.<\/p>\n<div>\n<table cellspacing=\"0\" cellpadding=\"0\" border=\"0\" class=\"prntblns\">\n<tr>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td colspan=\"3\" class=\"prngen3\">\n<p class=\"prnews_p\">\u00a0<\/p>\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">Underlying Gas Sales<\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<\/tr>\n<tr>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td colspan=\"3\" class=\"prngen4\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">Volumes (Mcf) <i><sup>(a)<\/sup><\/i><\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen3\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">Average Gas<\/span>\n              <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen4\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">Total<\/span>\n              <\/p>\n<\/td>\n<td class=\"prnsbts prnsbr1 prnvab prnsbb1 prntar prnpl6 prnsbl1 prnpr6\">\n              \n            <\/td>\n<td class=\"prnsbts prnsbr1 prnvab prnsbbs prntac prnpl6 prnsbl1 prnpr6\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">Daily<\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen4\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">Price per Mcf<\/span>\n              <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen3\">\n              \n            <\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnml10\">\n                <span class=\"prnews_span\">Current Month <\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen3\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">1,062,000<\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen3\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">34,000<\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen3\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">$2.38<\/span>\n              <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnml10\">\n                <span class=\"prnews_span\">Prior Month<\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen3\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">823,000<\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen3\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">27,000<\/span>\n              <\/p>\n<\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen3\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\">$2.51<\/span>\n              <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<td class=\"prngen2\">\n              \n            <\/td>\n<\/tr>\n<tr>\n<td colspan=\"7\" class=\"prngen7\">\n<p class=\"prnews_p\">\n                <span class=\"prnews_span\"><br \/>\n                  <i>(a)\u00a0\u00a0 <\/i>Sales volumes are recorded in the month the Trust receives the related net profits income.\u00a0 Because of this, sales volumes may fluctuate from month to month based on the timing of cash receipts.<\/span>\n              <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n<p>XTO Energy has advised the Trustee that it has included oil sales volumes of approximately 13,000 barrels from the new horizontal wells drilled in <span class=\"xn-location\">Major County, Oklahoma<\/span> and has deducted development costs of <span class=\"xn-money\">$315,000<\/span>, production expense of <span class=\"xn-money\">$2,061,000<\/span> and overhead of <span class=\"xn-money\">$897,000<\/span> in determining the royalty calculation for the Trust for the current month.<\/p>\n<p>\n        <u>Expense Reserve<br \/><\/u>The expense reserve used to pay administrative expenses in the absence of current month distributions was depleted in <span class=\"xn-chron\">October 2020<\/span>. As a result, <span class=\"xn-person\">Simmons Bank<\/span>, as Trustee of Hugoton Royalty Trust, is currently paying the expenses for the Trust, subject to its rights to be indemnified and reimbursed pursuant to the terms of the Trust indenture. This includes reimbursement from proceeds received from a sale of the Trust&#8217;s assets, if any. The Trustee has engaged a third party to market the Trust&#8217;s assets; however, there can be no assurance that a buyer can be found for such assets. Any material sale of assets and\/or termination of the Trust requires at least 80% unitholder approval.<\/p>\n<p>\n        <u>Excess Costs<br \/><\/u>XTO Energy has advised the Trustee that <span class=\"xn-money\">$75,000<\/span> of excess costs were recovered on properties underlying the <span class=\"xn-location\">Kansas<\/span> net profits interests primarily due to out of period refunds and credits. However, after the partial recovery, there were no remaining proceeds from the properties underlying the <span class=\"xn-location\">Kansas<\/span> net profits interests to be included in the current month&#8217;s distribution.\u00a0 Underlying cumulative excess costs remaining on the <span class=\"xn-location\">Kansas<\/span> net profits interests total <span class=\"xn-money\">$3,331,000<\/span>, including accrued interest of <span class=\"xn-money\">$327,000<\/span>.<\/p>\n<p>XTO Energy has advised the Trustee that excess costs were <span class=\"xn-money\">$598,000<\/span> on properties underlying the <span class=\"xn-location\">Oklahoma<\/span> net profits interests.\u00a0Underlying cumulative excess costs remaining on the <span class=\"xn-location\">Oklahoma<\/span> net profits interests total <span class=\"xn-money\">$25,587,000<\/span>, including accrued interest of <span class=\"xn-money\">$1,654,000<\/span>.<\/p>\n<p>XTO Energy has advised the Trustee that excess costs were <span class=\"xn-money\">$321,000<\/span> on properties underlying the <span class=\"xn-location\">Wyoming<\/span> net profits interests. Underlying cumulative excess costs remaining on the <span class=\"xn-location\">Wyoming<\/span> net profits interests total <span class=\"xn-money\">$5,078,000<\/span>, including accrued interest of <span class=\"xn-money\">$164,000<\/span>.<\/p>\n<p>\n        <u>Arbitration<br \/><\/u>As previously disclosed, XTO Energy advised the Trustee that it reached a settlement with the plaintiffs in the\u00a0<i>Chieftain<\/i>\u00a0class action royalty case.\u00a0On <span class=\"xn-chron\">July 27, 2018<\/span> the final plan of allocation was approved by the court.\u00a0Based on the final plan of allocation XTO Energy has advised the Trustee that it believes approximately <span class=\"xn-money\">$24.3 million<\/span> in additional production costs should be allocated to the Trust. On <span class=\"xn-chron\">May 2, 2018<\/span>, the Trustee submitted a demand for arbitration seeking a declaratory judgment that the\u00a0<i>Chieftain<\/i>\u00a0settlement is not a production cost and that XTO Energy is prohibited from charging the settlement as a production cost under the conveyance or otherwise reducing the Trust&#8217;s payments now or in the future as a result of the\u00a0<i>Chieftain<\/i>\u00a0litigation.\u00a0The interim hearing on the claims related to the\u00a0<i>Chieftain<\/i>\u00a0settlement was conducted on <span class=\"xn-chron\">October 12-13<\/span>, 2020.\u00a0A decision on the outcome is expected in the first quarter 2021. Other Trustee claims related to disputed amounts on the computation of the Trust&#8217;s net proceeds for 2014 through 2016 were bifurcated from the initial arbitration and will be heard at a later date, which is still to be determined.<\/p>\n<p>If the Trustee prevails on the claims related to the <span class=\"xn-money\">$24.3 million<\/span> in alleged additional production costs in connection with the <i>Chieftain<\/i> settlement, there will be no adjustment to the Trust&#8217;s share of net proceeds. If XTO Energy prevails as to those same claims, there will be an adjustment of approximately <span class=\"xn-money\">$24.3 million<\/span> reducing the Trust&#8217;s share of net proceeds. The <span class=\"xn-location\">Oklahoma<\/span> conveyance is already currently subject to excess costs that will need to be recovered prior to any distribution to unitholders. Therefore, an adjustment of approximately <span class=\"xn-money\">$24.3 million<\/span> reducing the Trust&#8217;s share of net proceeds would result in additional excess costs under the <span class=\"xn-location\">Oklahoma<\/span> conveyance that would likely result in no distributions under the <span class=\"xn-location\">Oklahoma<\/span> conveyance for several additional years while these additional excess costs are recovered.<\/p>\n<p>For more information on the Trust, please visit our web site at <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3017377-1&amp;h=2122835635&amp;u=http%3A%2F%2Fwww.hgt-hugoton.com%2F&amp;a=www.hgt-hugoton.com\" rel=\"nofollow noopener noreferrer\">www.hgt-hugoton.com<\/a>.<\/p>\n<p>\n        <i>Statements made in this press release regarding future events or conditions are forward looking statements.\u00a0 Actual future results, including development costs and future net profits, could differ materially due to changes in natural gas prices and other economic conditions affecting the gas industry and other factors described in Part I, Item 1A of the Trust&#8217;s Annual Report on Form 10-K for the year ended <span class=\"xn-chron\">December 31, 2019<\/span>.<\/i>\n      <\/p>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=DA28480&amp;sd=2020-12-18\" \/> View original content:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/hugoton-royalty-trust-declares-no-december-cash-distribution-301196048.html\">http:\/\/www.prnewswire.com\/news-releases\/hugoton-royalty-trust-declares-no-december-cash-distribution-301196048.html<\/a><\/p>\n<p>SOURCE  Hugoton Royalty Trust<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=DA28480&amp;Transmission_Id=202012180930PR_NEWS_USPR_____DA28480&amp;DateId=20201218\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PR Newswire DALLAS, Dec. 18, 2020 \/PRNewswire\/ &#8212;\u00a0Simmons Bank, as Trustee of the Hugoton Royalty Trust (OTCQB:HGTXU) (the &#8220;Trust&#8221;), today declared there would not be a cash distribution to the holders of its units of beneficial interest for December 2020 due to the excess cost positions on all three of the Trust&#8217;s conveyances of net profits interests. The following table shows underlying gas sales and average prices attributable to the net overriding royalty for both the current month and prior month. Underlying gas sales volumes attributable to the current month were primarily produced in October. \u00a0 Underlying Gas Sales Volumes (Mcf) (a) Average Gas Total Daily Price per Mcf Current Month 1,062,000 34,000 $2.38 Prior Month 823,000 27,000 $2.51 (a)\u00a0\u00a0 &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Hugoton Royalty Trust Declares No December Cash Distribution&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-402865","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hugoton Royalty Trust Declares No December Cash Distribution - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hugoton Royalty Trust Declares No December Cash Distribution - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"PR Newswire DALLAS, Dec. 18, 2020 \/PRNewswire\/ &#8212;\u00a0Simmons Bank, as Trustee of the Hugoton Royalty Trust (OTCQB:HGTXU) (the &#8220;Trust&#8221;), today declared there would not be a cash distribution to the holders of its units of beneficial interest for December 2020 due to the excess cost positions on all three of the Trust&#8217;s conveyances of net profits interests. The following table shows underlying gas sales and average prices attributable to the net overriding royalty for both the current month and prior month. Underlying gas sales volumes attributable to the current month were primarily produced in October. \u00a0 Underlying Gas Sales Volumes (Mcf) (a) Average Gas Total Daily Price per Mcf Current Month 1,062,000 34,000 $2.38 Prior Month 823,000 27,000 $2.51 (a)\u00a0\u00a0 &hellip; Continue reading &quot;Hugoton Royalty Trust Declares No December Cash Distribution&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-18T14:33:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=DA28480&amp;sd=2020-12-18\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/hugoton-royalty-trust-declares-no-december-cash-distribution\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/hugoton-royalty-trust-declares-no-december-cash-distribution\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Hugoton Royalty Trust Declares No December Cash Distribution\",\"datePublished\":\"2020-12-18T14:33:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/hugoton-royalty-trust-declares-no-december-cash-distribution\\\/\"},\"wordCount\":864,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/hugoton-royalty-trust-declares-no-december-cash-distribution\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/c212.net\\\/c\\\/img\\\/favicon.png?sn=DA28480&amp;sd=2020-12-18\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/hugoton-royalty-trust-declares-no-december-cash-distribution\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/hugoton-royalty-trust-declares-no-december-cash-distribution\\\/\",\"name\":\"Hugoton Royalty Trust Declares No December Cash Distribution - 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/","og_locale":"en_US","og_type":"article","og_title":"Hugoton Royalty Trust Declares No December Cash Distribution - Market Newsdesk","og_description":"PR Newswire DALLAS, Dec. 18, 2020 \/PRNewswire\/ &#8212;\u00a0Simmons Bank, as Trustee of the Hugoton Royalty Trust (OTCQB:HGTXU) (the &#8220;Trust&#8221;), today declared there would not be a cash distribution to the holders of its units of beneficial interest for December 2020 due to the excess cost positions on all three of the Trust&#8217;s conveyances of net profits interests. The following table shows underlying gas sales and average prices attributable to the net overriding royalty for both the current month and prior month. Underlying gas sales volumes attributable to the current month were primarily produced in October. \u00a0 Underlying Gas Sales Volumes (Mcf) (a) Average Gas Total Daily Price per Mcf Current Month 1,062,000 34,000 $2.38 Prior Month 823,000 27,000 $2.51 (a)\u00a0\u00a0 &hellip; Continue reading \"Hugoton Royalty Trust Declares No December Cash Distribution\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/","og_site_name":"Market Newsdesk","article_published_time":"2020-12-18T14:33:15+00:00","og_image":[{"url":"https:\/\/c212.net\/c\/img\/favicon.png?sn=DA28480&amp;sd=2020-12-18","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Hugoton Royalty Trust Declares No December Cash Distribution","datePublished":"2020-12-18T14:33:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/"},"wordCount":864,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/#primaryimage"},"thumbnailUrl":"https:\/\/c212.net\/c\/img\/favicon.png?sn=DA28480&amp;sd=2020-12-18","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/hugoton-royalty-trust-declares-no-december-cash-distribution\/","name":"Hugoton Royalty Trust Declares No December Cash Distribution - 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