Hugoton Royalty Trust (OTC:HGTXU) announced on October 21, 2025, that it will not declare a monthly cash distribution for October 2025, citing excess cost positions on all three of the Trust's conveyances of net profits interests.
The Trust's cash reserve decreased by $47,000 for the payment of Trust expenses. Argent Trust Company, as Trustee, stated it anticipates replenishing the cash reserve from future net profits income prior to declaring any subsequent distributions to unitholders.
Underlying gas sales volumes for the current month's distribution totaled 757,000 thousand cubic feet (Mcf) at an average price of $3.63 per Mcf, while oil sales reached 19,000 barrels (Bbls) at an average of $63.52 per Bbl. This compares to the prior month's distribution, which saw gas sales of 623,000 Mcf at $3.24 per Mcf and oil sales of 11,000 Bbls at $67.50 per Bbl.
Mach Natural Resources advised the Trustee on costs for the current month's royalty calculation, including $242,000 in development costs, $1,877,000 in production expense, and $934,000 in overhead. The Trustee noted that $23,000 in excess costs was recovered on properties underlying the Kansas net profits interests, though cumulative excess costs for Kansas still total $2,548,000, including $236,000 in accrued interest.
Excess costs on properties underlying the Oklahoma net profits interests increased by $165,000, with remaining cumulative excess costs totaling $8,749,000, including $687,000 in accrued interest. For Wyoming net profits interests, excess costs rose by $53,000, bringing the total remaining cumulative excess costs to $10,767,000, which includes $941,000 in accrued interest.
The Trust also has outstanding advance distributions of $1,000,000 (net to the Trust) from XTO Energy, which can be recouped from future net profits, provided the recoupment does not reduce the Trust's available cash below $250,000.
