DALLAS, Jan. 20, 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 $0.008824 per
unit, payable on February 14, 2017,
to unitholders of record on January 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 November.
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Underlying Gas
Sales
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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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Current
Month
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1,193,000
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40,000
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$2.71
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Prior Month
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1,128,000
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36,000
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$3.07
(b)
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(a)
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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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(b)
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Excluding the effect
of a one-time prior period revenue adjustment, the average gas
price for the prior month distribution was $2.82 per Mcf. See
"Other" below for additional information.
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XTO Energy has advised the trustee that it has deducted budgeted
development costs of $200,000,
production expense of $1,860,000 and
overhead of $1,066,000 in determining
the royalty payment to the Trust for the current month.
Gas Volumes
XTO Energy advised the trustee that repairs and maintenance at a
third party gas processing system in the Hugoton area resulted in
decreased underlying gas volumes of approximately 4,000 Mcf per day
for the month of October, which was the primary production for the
prior month distribution. The third party notified XTO Energy that
maintenance was completed by the end of October.
Other
XTO Energy has advised the trustee that the prior month
distribution included a one-time prior period adjustment of
approximately $230,000 related to gas
revenue from properties underlying the Kansas net profits interest. The increase in
net profits income was used to partially recoup excess costs for
the Kansas conveyance.
Excess Costs
XTO Energy has advised the trustee that lower gas prices caused
costs to exceed revenues on properties underlying the Kansas net profits interests. However, these
excess costs did not reduce net proceeds from the remaining
conveyances.
XTO Energy has advised the trustee that increased expenses
caused costs to exceed revenues on properties underlying the
Wyoming net profits interests.
However, these excess costs did not reduce net proceeds from the
remaining conveyances.
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,
2015.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hugoton-royalty-trust-declares-january-cash-distribution-300394173.html
SOURCE Hugoton Royalty Trust