Wed, Nov 13, 6:31 PM (96 days ago)
For the quarter ended September 30, 2024, Hugoton Royalty Trust (HGTXU) reported no net profits income, consistent with the prior year, primarily due to ongoing excess costs and reduced gas prices. Distributable income was $0 per unit, with total income of $4,710, primarily from interest, against administration expenses of $171,655. The Trust has not distributed any income since July 2023, raising concerns about its ability to continue as a going concern. Cumulative excess costs have reached approximately $10.5 million, further complicating financial stability. The Trust received a one-time advance distribution of $500,000 from XTO Energy, which is to be recouped from future net profits. The Trust's financial health continues to be impacted by lower gas prices, increased production expenses, and the ongoing effects of the Chieftain litigation settlement, which has resulted in further production costs. Future operations may depend on the resolution of these excess costs and the ability to generate sufficient net profits income. The Trustee is exploring options, including potential termination of the Trust, if financial conditions do not improve.