Tue, May 14, 8:30 PM (245 days ago)
For the quarter ended March 31, 2024, Hugoton Royalty Trust reported zero net profits income, a significant decline from $10.46 million in the same period the previous year. This decline was primarily due to lower gas and oil prices, decreased gas production, and increased production expenses. Total income for the quarter was $4,678, down from $10.48 million in Q1 2023, with administrative expenses amounting to $228,423. Distributable income was zero, compared to $10.18 million in Q1 2023. The Trust's financial health is impacted by ongoing litigation and arbitration related to the Chieftain class action settlement, which could result in approximately $14.6 million in additional costs. Cumulative excess costs for Kansas, Oklahoma, and Wyoming conveyances totaled $4.3 million, with $3.4 million net to the Trust. The Trust's ability to continue as a going concern is uncertain due to insufficient cash reserves and potential future liabilities.