Hugoton Royalty Trust Declares September Cash Distribution
September 18 2009 - 10:31AM
PR Newswire (US)
DALLAS, Sept. 18 /PRNewswire-FirstCall/ -- U.S. Trust, Bank of
America Private Wealth Management, as Trustee of the Hugoton
Royalty Trust (NYSE: HGT), today declared a cash distribution to
the holders of its units of beneficial interest of $0.092712 per
unit, payable on October 15, 2009, to unitholders of record on
September 30, 2009. The following table shows underlying gas sales
and average prices attributable to the net overriding royalty
payments made by XTO Energy Inc. (XTO Energy) to the Trust for both
the current month and prior month distributions. Underlying gas
sales volumes attributable to the current month distribution were
primarily produced in July. Underlying Gas Sales Volumes (Mcf) (a)
Average Gas -------------------- Total Daily Price per Mcf -----
----- ------------- Current Month Distribution 2,171,000 70,000
$3.30 Prior Month Distribution 2,133,000 71,000 $3.08
------------------------ (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
four wells are currently being drilled on the underlying properties
and that it has deducted budgeted development costs of $500,000,
production expense of $1,341,000 and overhead of $910,000 in
determining the royalty payment to the Trust for the current month.
Development Costs XTO Energy has advised the trustee that it
decreased the monthly development cost deduction from $1 million to
$500,000 beginning with the September 2009 distribution and expects
it to remain at that level through the December 2009 distribution.
The development cost deduction will continue to be evaluated and
revised as necessary. The monthly deduction is based on the current
level of development expenditures, budgeted future development
costs and the cumulative actual costs under or over the previous
deductions. Other Effective October 5, 2009, American Stock
Transfer & Trust Company (AST) will serve as the new transfer
agent and registrar for Hugoton Royalty Trust. Beginning October
5th, unitholders with registered ownership accounts can contact AST
with questions relating to transfers of ownership and instruction,
a change of address, direct deposit of distribution checks, and any
other account related questions. A dedicated toll free number to
call AST will be provided to registered unitholders as soon as it
becomes available. For more information on the Trust, please visit
our web site at http://www.hugotontrust.com/. Statements made in
this press release, including those related to development
activities, annual and monthly development costs and monthly trust
distributions, are "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
that are subject to risks and uncertainties which are detailed in
Part I, Item 1A of the trust's Annual Report on Form 10-K for the
year ended December 31, 2008, which is incorporated by reference as
though fully set forth herein. Although XTO Energy and the trustee
believe that the expectations reflected in such forward-looking
statements are reasonable, neither XTO Energy nor the trustee can
give any assurance that such expectations will prove to be correct.
DATASOURCE: U.S. Trust CONTACT: Nancy G. Willis, Vice President of
U.S. Trust, Bank of America Private Wealth Management, Trustee,
1-877-228-5083; or Louis G. Baldwin, Executive Vice President &
Chief Financial Officer of XTO Energy Inc., +1-817-870-2800
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