DALLAS, Sept. 19 /PRNewswire-FirstCall/ -- 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 $0.404446 per unit, payable on October 15, 2008, to
unitholders of record on September 30, 2008. 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
July.
Underlying Gas Sales
Volumes (Mcf) (a) Average Gas
Total Daily Price per Mcf
Current Month 2,383,000 77,000 $11.04
Distribution
Prior Month 2,303,000 77,000 $9.80
Distribution
(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 seventeen wells are currently
being drilled on the underlying properties and that it has deducted budgeted
development costs of $4,000,000, production expense of $2,738,000 and overhead
of $853,000 in determining the royalty payment to the Trust for the current
month.
Development Costs
XTO Energy has advised the trustee that it increased the monthly
development cost deduction from $3,750,000 to $4,000,000 beginning with the
September 2008 distribution. The development cost deduction is expected to be
maintained at $4,000,000 through the December 2008 distribution. The
development cost deduction will continue to be evaluated and revised as
necessary.
Other
XTO Energy has advised the trustee that scheduled pipeline maintenance on
a major pipeline transporting gas from the Rocky Mountain region has led to
lower realized gas prices for production in this area, beginning with
September 2008 production. The downward pressure on realized gas prices is
expected to result in lower monthly trust distributions over the near term.
For more information on the Trust, please visit our web site at
http://www.hugotontrust.com.
Statements made in this press release, including those related to future
realized gas prices and monthly trust distributions, are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that are subject to risks and uncertainties which are detailed in
Part I, Item 1A of the trust's Annual Report on Form 10-K for the year ended
December 31, 2007, which is incorporated by this reference as though fully set
forth herein. Although XTO Energy and the trustee believe that the
expectations reflected in such forward-looking statements are reasonable,
neither XTO Energy nor the trustee can give any assurance that such
expectations will prove to be correct.
SOURCE U.S. Trust