HUGOTON ROYALTY TRUST DECLARES NO AUGUST CASH DISTRIBUTION
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Underlying Sales |
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Volumes (a) |
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Average Price |
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Gas (Mcf) |
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Oil (Bbls) |
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Gas (per Mcf) |
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Oil (per Bbl) |
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Current Month Distribution |
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650,000 |
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20,000 |
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Prior Month Distribution |
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747,000 |
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17,000 |
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(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.
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Excess Costs
Development Costs
As previously disclosed,
Arbitration
As previously disclosed,
On
In the arbitration, the Trustee also disputed certain amounts related to the computation of the Trust's net proceeds for 2014 through 2019 and 2021 (the "Overhead Claims").
On
- that the value of the Chieftain Claim, with interest, to the benefit of XTO is stipulated to be
$18,105,467 (net to the Trust); - that the value of the Overhead Claims, with interest, to the benefit of the Trust is stipulated to be
$17,275,086 (net to the Trust); - that the stipulated value of Chieftain Claim and the Overhead Claims would be offset against one another, on a cumulative basis and without respect to which conveyance the particular claim arose, leaving a balance, to the benefit of XTO of
$830,381 (net to the Trust), which balance shall be treated as a production cost under theOklahoma conveyance, and subject to the recoupment and interest charges under that conveyance; and - that XTO will provide the Trust a one-time advance distribution of
$500,000 (net to the Trust), that can be treated as a production cost, except that it can be recouped, together with interest, from what would otherwise be distributable net profits under any of the three conveyances; provided, however that XTO shall only be entitled to withhold distributions of net proceeds as recoupment to the extent that such recoupment does not leave the Trust with less than$250,000 of available cash.
The Trustee used the
Additionally, the Settlement Agreement provides that XTO will modify certain accounting practices with respect to the Overhead Claims effective as of
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
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