Hugoton Royalty Trust : Declares January Cash Distributions

Hugoton Royalty Trust

News Release

Dallas, Texas, January 21, 2014 - U.S. Trust, Bank of America Private Wealth Management, as Trustee of the Hugoton Royalty Trust (NYSE - HGT), today declared a cash distribution to the holders of its units of beneficial interest of $0.052662 per unit, payable on February 14, 2014, to unitholders of record on

January 31, 2014. The following table shows underlying gas sales and average prices attributable to the net overriding royalty payments made by XTO Energy Inc. (XTO Energy) to the Trust for both the current month and prior month distributions. Underlying gas sales volumes attributable to the current month distribution were primarily produced in November.

Underlying Gas Sales

Volumes (Mcf) (a) Average Gas

(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.

XTO Energy has advised the trustee that it has deducted budgeted development costs of $600,000, production expense of $1,700,000 and overhead of $1,003,000 in determining the royalty payment to the Trust for the current month.

Arbitration Proceedings - XTO Energy

Regarding the $37 million settlement reached by XTO Energy on the Fankhouser v. XTO Energy, Inc. litigation, XTO Energy notified the trustee with the September 2012 distribution that it charged the trust $28.5 million of the settlement, of which $23.4 million affected the net proceeds from Oklahoma and $5.1 million affected the net proceeds from Kansas. Based on recent revenue and expense levels, XTO Energy has advised
the trustee that it expects the settlement deductions, if deemed allowed by the arbitrators, to cause costs to

901 Main Street, 17th Floor

Dallas, Texas 75202 (877) 228-5083 www.hugotontrust.com

exceed revenues for approximately 12 months on properties underlying the Oklahoma net profits interests and approximately 7 years on properties underlying the Kansas net profits interests; however, changes in oil or natural gas prices or expenses could cause the time period to increase or decrease, correspondingly.
As mentioned in the third quarter Form 10-Q filed on November 12, 2013, the trustee disagrees with XTO Energy that all or any portion of the settlement should be deducted from Trust revenues, and the dispute is being arbitrated. The arbitration hearing was held as scheduled on November 12 through November 14,
2013 in Fort Worth, Texas before a three member panel of arbitrators (the "Tribunal"). The Tribunal will

issue a decision sometime after the hearing at its own discretion. Based on the trustee