HUGOTON ROYALTY TRUST 
By Hugoton Royalty Trust
News Release
HUGOTON ROYALTY TRUST DECLARES JUNE CASH DISTRIBUTION
Dallas, Texas, June 19, 2012 - 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 $0.050185 per
unit, payable on July 16, 2012, to unitholders of record on
June 29, 2012. 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 April.
Underlying Gas Sales
Volumes (Mcf) (a) Average Gas
Total Daily Price per Mcf
Current Month Distribution 1,657,000 55,000 $ 2.69
Prior Month Distribution 1,644,000 53,000 $ 3.16
(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 $500,000, production expense of $1,678,000 and overhead of $960,000 in determining the royalty payment to the Trust for the current month.
Other
As noted in the first quarter Form 10-Q filed on April 27,
2012, XTO Energy reached a tentative settlement on the
Fankhouser litigation for $37 million which requires court
approval. The hearing for formal court approval has been
rescheduled for June 21, 2012 in order for the parties to
work through and agree to the administrative details
regarding the settlement. Assuming the court approves the
settlement, a fairness hearing will be scheduled at a later
date. XTO Energy has advised the trustee that the terms of
the conveyances governing the Trust's net profits interests
require the Trust to bear its 80% interest in the
settlement, or approximately $29.6 million. Upon payment of
the settlement, it is expected that costs will
901 Main Street, 17th Floor
Dallas, Texas 75202 (877) 228-5083 www.hugotontrust.com
exceed revenues on properties underlying the Oklahoma and
Kansas net profits interest. Based on recent revenue and
expense levels, it is expected that costs will exceed
revenues for approximately 18 months; however, changes in oil
or natural gas prices or expenses could cause the time period
to increase or decrease correspondingly. The net profits
interest from Wyoming is unaffected and payments will
continue to be made from those properties. The settlement is
expected to decrease the amount of net profits going forward
for the Oklahoma and Kansas properties due to changes in the
way costs (such as gathering, compression and fuel)
associated with operating the properties will be allocated,
resulting in a net gain to the royalty interest owners. XTO
Energy has stated that this expected net upward revision for
the royalty interest owners will reduce applicable net
profits to XTO Energy and, correspondingly, to the Trust.
For more information on the Trust, please visit our web site
at www.hugotontrust.com.
Statements made in this press release regarding future events or conditions are forward looking statements. Actual future results, including development costs, the outcome of litigation, and future net profits, could differ materially due to changes in natural gas prices and other economic conditions affecting the gas industry and other factors described in Part I, Item 1A of the trust's Annual Report on Form 10-K for the year ended December 31, 2011.
Contact: Nancy G. Willis
Vice President
* * *
U.S. Trust, Bank of America Private
Wealth Management, Trustee
(Toll Free)
877-228-5083
901 Main Street, 17th Floor
Dallas, Texas 75202 (877) 228-5083 www.hugotontrust.com
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