FORT WORTH, Texas, Aug. 21, 2017 /PRNewswire/ -- Southwest Bank, as
Trustee of the Hugoton Royalty Trust (NYSE:HGT) (the "Trust"),
today declared a cash distribution to the holders of its units of
beneficial interest of $0.006092 per
unit, payable on September 15, 2017,
to unitholders of record on August 31,
2017. 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 June.
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Underlying Gas
Sales
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|
|
|
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Volumes (Mcf)
(a)
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Average
Gas
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Total
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Daily
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Price per
Mcf
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|
|
|
|
|
|
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Current
Month
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1,186,000
|
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40,000
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$2.78
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|
|
|
|
|
|
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Prior Month
|
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1,191,000
|
|
38,000
|
|
$2.85
|
|
|
|
|
|
|
|
|
(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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XTO Energy has advised the Trustee that it has deducted budgeted
development costs of $280,000,
production expense of $1,400,000,
overhead of $988,000 and recovered
excess costs of $244,000 in
determining the royalty payment to the Trust for the current
month.
Development Costs
XTO Energy has advised the Trustee that due to increased
non-operated development activity on properties underlying the
Oklahoma net profits interests, it
increased the monthly development cost deduction from $200,000 to $280,000 beginning with the August 2017 distribution. The monthly
deduction is based on the current level of development
expenditures, budgeted future development costs and cumulative
actual costs under or over the previous deductions. XTO
Energy has advised the Trustee that the development cost deduction
will continue to be evaluated and revised as necessary.
Excess Costs
XTO Energy has advised the Trustee that improved gas prices in
relation to costs resulted in the partial recovery of excess costs
of $40,000 on properties underlying
the Kansas net profits interests.
However, after the partial recovery there were no remaining
proceeds from properties underlying the Kansas net profits interests to be included in
the current month's distribution. Underlying cumulative excess
costs remaining on the Kansas net
profits interests after the current month's distribution totaled
$990,000, including accrued interest
of $99,000.
XTO Energy has advised the Trustee that improved gas prices in
relation to costs resulted in the partial recovery of excess costs
of $203,000 on properties underlying
the Wyoming net profits interests.
However, after the partial recovery there were no remaining
proceeds from properties underlying the Wyoming net profits interests to be included
in the current month's distribution. Underlying cumulative excess
costs remaining on the Wyoming net
profits interests after the current month's distribution totaled
$265,000, including accrued interest
of $71,000.
For more information on the Trust, please visit our web site 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 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's Annual Report on Form
10-K for the year ended December 31,
2016.
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SOURCE Hugoton Royalty Trust