DALLAS, April 19, 2016 /PRNewswire/ -- Southwest
Bank, as Trustee of the Hugoton Royalty Trust (NYSE: HGT) (the
"Trust"), today reported that it will not declare a monthly cash
distribution to the holders of its units of beneficial interest for
the month of April 2016. 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
February.
|
|
Underlying Gas
Sales
|
|
|
|
|
Volumes (Mcf)
(a)
|
|
Average
Gas
|
|
|
Total
|
|
Daily
|
|
Price per
Mcf
|
|
|
|
|
|
|
|
Current
Month
|
|
1,176,000
|
|
41,000
|
|
$1.70
|
|
|
|
|
|
|
|
Prior Month
|
|
1,215,000
|
|
39,000
|
|
$1.89
|
|
|
(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 it has deducted budgeted
development costs of $100,000,
production expense of $1,505,000 and
overhead of $1,031,000 resulting in
no net proceeds for April 2016. The
trustee will use part of the expense reserve that has been
established to pay the $38,000 in
administrative expenses. The trustee intends to replenish the
reserve out of future monthly net profits income prior to the
payment of future distributions to unitholders.
Development Costs
XTO Energy has advised the trustee that based on the revised
2016 development budget, it decreased the monthly development cost
deduction from $187,500 to $100,000
beginning in April 2016. Revised 2016
budgeted development costs for the underlying properties are
expected to be between $2 million and $4
million. 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.
The development costs deduction will continue to be evaluated and
revised as necessary.
Excess Costs
XTO Energy has advised the trustee that lower gas prices caused
costs to exceed revenues on properties underlying the Kansas and Wyoming net profits interests resulting in no
net proceeds for April 2016.
XTO Energy has advised the trustee that the timing of cash
receipts and lower gas prices caused costs to exceed revenues on
properties underlying the Oklahoma
net profits interests resulting in no net proceeds for April 2016.
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.
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visit:http://www.prnewswire.com/news-releases/hugoton-royalty-trust-declares-no-cash-distribution-for-april-300253679.html
SOURCE Hugoton Royalty Trust