Hugoton Royalty Trust Declares October Cash Distribution
October 20 2009 - 9:49AM
PR Newswire (US)
DALLAS, Oct. 20 /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 $0.096543 per
unit, payable on November 16, 2009, to unitholders of record on
October 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 August. Underlying Gas Sales Volumes (Mcf)(a)
-------------------- Average Gas Total Daily Price per Mcf -----
----- ------------- Current Month Distribution 2,228,000 72,000
$3.41 Prior Month Distribution 2,171,000 70,000 $3.30 (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 two wells are currently being
drilled on the underlying properties and that it has deducted
budgeted development costs of $500,000, production expense of
$1,678,000 and overhead of $908,000 in determining the royalty
payment to the Trust for the current month. Other XTO Energy has
advised the trustee that lower gas prices due to reduced demand as
a result of the U.S. recession and excess supply caused costs to
exceed revenues on properties underlying the Kansas net profits
interests. These excess costs did not reduce net proceeds from the
remaining conveyances. XTO Energy advised the trustee that even
with the recent increase in gas prices, it will take several months
to fully recover the excess costs. Effective October 5, 2009,
American Stock Transfer & Trust Company (AST) became the new
transfer agent and registrar for Hugoton Royalty Trust. 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 at the dedicated toll free number
1-866-737-9819. 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 future realized gas
prices and recovery of excess costs, 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, 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 Web Site:
http://www.hugotontrust.com/
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