Hugoton Royalty Trust
Hugoton Royalty Trust (OTCQX: HGTXU) is a natural gas royalty trust organized as an express trust, holding 80% net profits interests in natural gas producing working interest properties located in Kansas, Oklahoma, and Wyoming. The trust was established in 1998 and is administered from Dallas, Texas. XTO Energy Inc., the owner of the underlying natural gas properties, computes and pays the net profits income to Simmons Bank, which serves as the trustee for the benefit of Hugoton Royalty Trust unitholders. XTO Energy is a wholly owned subsidiary of Exxon Mobil Corporation, providing the trust with the operational management and production expertise of one of the world's largest integrated energy companies.<br><br>The Hugoton gas field, from which the trust derives its name and the majority of its production, is one of the largest natural gas fields in North America, covering portions of Kansas, Oklahoma, and the Texas Panhandle, with production history spanning more than 80 years. The trust's 80% net profits interest entitles it to receive 80% of the net revenues generated by the underlying working interest properties after deduction of operating costs and capital expenditures, passing this income stream through to trust unitholders in the form of monthly distributions. This structure makes Hugoton Royalty Trust a yield-oriented investment vehicle that provides investors with direct exposure to natural gas production economics without the operational management requirements of direct mineral ownership.<br><br>Hugoton Royalty Trust trades on the OTCQX Best Market under the ticker symbol HGTXU and files periodic reports with the Securities and Exchange Commission, including annual Form 10-K and quarterly Form 10-Q reports providing detailed information on production volumes, commodity prices, net profits calculations, and distribution amounts. As a fixed-asset, depleting royalty trust, Hugoton's production volume is expected to decline over time as the underlying natural gas reserves are produced, making the trust's value a function of the remaining reserve life, commodity pricing, and operating cost levels managed by XTO Energy on behalf of unitholders.