DALLAS, Dec. 19, 2016 /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 $0.006445 per unit, payable on January 17, 2017, to unitholders of record on
December 30, 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 October.
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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
|
|
Price per
Mcf
|
|
|
|
|
|
|
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Current
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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|
|
|
|
|
|
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Prior Month
|
|
1,212,000
|
|
40,000
|
|
$2.61
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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.
|
(b)
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Excluding the effect
of a one-time prior period revenue adjustment, the average gas
price for the current 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 $1,534,000 and
overhead of $964,000 in determining
the royalty payment to the Trust for the current month.
Gas Volumes
XTO Energy has 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. The third party notified XTO Energy
that maintenance was completed by the end of October.
Other
XTO Energy has advised the trustee that the current month
distribution includes 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 increased gas prices and
a one-time prior period revenue adjustment led to the partial
recovery of excess costs on properties underlying the Kansas net profits interests. However after
the partial recovery, there were no remaining proceeds from the
properties underlying the Kansas
net profits interest to be included in this month's
distribution.
XTO Energy has advised the trustee that increased gas prices led
to the partial recovery of excess costs on properties underlying
the Wyoming net profits interests.
However after the partial recovery, there were no remaining
proceeds from the properties underlying the Wyoming net profits interests to be included
in this month's distribution.
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-december-cash-distribution-300381023.html
SOURCE Hugoton Royalty Trust