Report of Independent Registered Public Accounting Firm
To the Unitholders of Hugoton Royalty Trust and
Simmons Bank,
Trustee
Results of Review of Interim Financial Statements
We have reviewed the accompanying condensed statement of assets, liabilities and trust corpus of Hugoton Royalty Trust (the Trust) as of
September 30, 2020, and the related condensed statements of distributable income and of changes in trust corpus for the three-month and nine-month periods ended September 30, 2020 and 2019, including the related notes (collectively
referred to as the interim financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with the modified
cash basis of accounting described in Note 1.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the statement of assets, liabilities and trust corpus as of December 31, 2019, and the related statements of distributable income and of changes in trust corpus for the year then ended (not presented herein), and in our
report dated March 30, 2020, which included a paragraph describing the modified cash basis of accounting and a paragraph regarding substantial doubt about the Trusts ability to continue as a going concern, we expressed an unqualified
opinion on those financial statements. In our opinion, the information set forth in the accompanying condensed statement of assets, liabilities and trust corpus as of December 31, 2019, is fairly stated, in all material respects, in relation to
the statement of assets, liabilities and trust corpus from which it has been derived.
Basis for Review Results
These interim financial statements are the responsibility of the Trustee. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Substantial Doubt about the Companys Ability to Continue as a Going Concern
The accompanying interim financial statements have been prepared assuming that the Trust will continue as a going concern. Note 2 of the Trusts audited
financial statements as of December 31, 2019 and 2018, and for the years then ended, includes a statement that substantial doubt exists about the Trusts ability to continue as a going concern. Note 2 of the Trusts audited financial
statements also discloses the events and conditions, managements evaluation of the events and conditions, and managements plans regarding these matters, including the fact that a reduction in net profits income as a result of excess
costs have led to a decline to the expense reserve available to the Trust for the payment of its obligations. Our report on those financial statements includes a paragraph referring to the matters in Note 2 of those financial statements. As
indicated in Note 1 of the accompanying interim financial statements, as of September 30, 2020, and for the three-months and nine-months then ended, the events and conditions impacting the Trust have not changed, and as a result, the Trust has
stated that substantial doubt exists about the Trusts ability to continue as a going concern. The accompanying interim financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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