DALLAS, Oct. 21, 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 $0.009194 per
unit, payable on November 15, 2016,
to unitholders of record on October 31,
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 August.
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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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|
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Total
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Daily
|
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Price per
Mcf
|
|
|
|
|
|
|
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Current
Month
|
|
1,251,000
|
|
40,000
|
|
$2.56
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|
|
|
|
|
|
|
Prior Month
|
|
1,286,000
|
|
41,000
|
|
$2.47
|
|
|
|
|
|
|
|
|
|
(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 $200,000,
production expense of $1,229,000 and
overhead of $961,000 in determining
the royalty payment to the Trust for the current month.
Development Costs
XTO Energy has advised the trustee that based on the current
level of actual development costs it increased the monthly
development cost deduction from $50,000 to $200,000
beginning with the October 2016
distribution. 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 cost deduction will continue to be evaluated and
revised as necessary.
Excess Costs
XTO Energy has advised the trustee that increased gas prices led
to the partial recovery of excess costs on properties underlying
the Kansas and Wyoming net profits interests. However after
the partial recovery, there were no remaining proceeds from the
properties underlying the Kansas
or 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hugoton-royalty-trust-declares-october-cash-distribution-300349131.html
SOURCE Hugoton Royalty Trust