HUGOTON ROYALTY TRUST DECLARES NO FEBRUARY CASH DISTRIBUTION
- Suspension of cash distribution for February 2024 due to excess costs
- Trust's cash reserve reduced by $26,000 for payment of expenses
- Underlying sales volumes and prices for gas and oil detailed for current and prior months
- $9.1 million in development costs charged to the Trust for non-operated wells in Oklahoma
- Arbitration settlement with plaintiffs in the Chieftain case may result in charges to the Trust
- No cash distribution for February 2024 due to excess costs
- Reduction in Trust's cash reserve by $26,000
- Excess costs increased on properties underlying Kansas net profits interests
- No remaining proceeds from properties underlying Oklahoma and Wyoming net profits interests for current month's distribution
- Arbitration settlement may lead to charges on the Trust
Underlying Sales | |||||||||
Volumes (a) | Average Price | ||||||||
Gas (Mcf) | Oil (Bbls) | Gas (per Mcf) | Oil (per Bbl) | ||||||
Current Month Distribution | 788,000 | 23,000 | |||||||
Prior Month Distribution | 676,000 | 12,000 | |||||||
(a) Sales volumes are recorded in the month the Trust receives the related net profits income.
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XTO Energy has advised the Trustee that it has included two months of underlying sales volumes of approximately 9,000 Bbls and 52,000 Mcf from two new non-operated wells drilled in
Excess Costs
XTO Energy has advised the Trustee that excess costs increased by
XTO Energy has advised the Trustee that
XTO Energy has advised the Trustee that
Development Costs
As previously disclosed, XTO Energy advised the Trustee that it elected to participate in the development of three non-operated wells in
Arbitration
As previously disclosed, XTO Energy advised the Trustee that it reached a settlement with the plaintiffs in the Chieftain class action royalty case. On July 27, 2018, the final plan of allocation was approved by the court. Based on the final plan of allocation, XTO Energy advised the Trustee that it believes approximately
On January 20, 2021, the arbitration panel issued its Corrected Interim Final Award (i) "reject[ing] the Trust's contention that XTO has no right under the Conveyance to charge the Trust with amounts XTO paid under section 1.18(a)(i) as royalty obligations to settle the Chieftain litigation" and (ii) stating "[t]he next phase will determine how much of the Chieftain settlement can be so charged, if any of it can be, in the exercise of the right found by the Panel." Following briefing by both parties, on May 18, 2021, the Panel issued its second interim final award over the amount of XTO Energy's settlement in the Chieftain class action lawsuit that can be charged to the Trust as a production cost. The Panel in its decision has ruled that out of the
The reduction in the Trust's share of net proceeds from the portion of the settlement amount the Panel has ruled may be charged against the
Other Trustee claims related to disputed amounts on the computation of the Trust's net proceeds for 2014 through 2019 and 2021 were bifurcated from the initial arbitration. Although the arbitration is not terminated, the final hearing regarding the remaining dispute over net proceeds was cancelled. XTO Energy and the Trustee will provide material updates as they become available.
For more information on the Trust, including the annual tax information, distribution amounts, and historical press releases, please visit our website at www.hgt-hugoton.com.
Statements made in this press release regarding future events or conditions are forward looking statements. Actual future results, including development costs and timing, and future net profits, could differ materially due to changes in natural gas and oil prices and other economic conditions affecting the gas and oil industry and other factors described in Part I, Item 1A of the Trust's Annual Report on Form 10-K for the year ended December 31, 2022.
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SOURCE Hugoton Royalty Trust
FAQ
Why was there no cash distribution for February 2024 for Hugoton Royalty Trust (HGTXU)?
What caused the reduction in the Trust's cash reserve by $26,000?
What updates did XTO Energy provide regarding the Trust?
How much in development costs were charged to the Trust for non-operated wells in Oklahoma?