Argent Trust Company, as Trustee of the Hugoton Royalty Trust, announced the decision to not distribute cash to unit holders for November 2025.
This decision was influenced by excess cost positions on all three of the Trust's conveyances of net profits interests.
The Trust's cash reserve was reduced for Trust expenses with plans to replenish it from future net profits income.
No November Distribution
No cash distribution for November 2025 due to excess costs on net profits interests.
Trust Expense Reduction
Cash reserve reduced by $5,000 for Trust expenses, with plans to replenish from future net profits income.
Future Distributions
Anticipation of replenishing cash reserve for future distributions to unitholders based on incoming net profits income.
- Excess costs on properties underlying net profits interests in Kansas, Oklahoma, and Wyoming.
- Cumulative excess costs reveal challenges in distributing net proceeds to unitholders.
- Replenishing the cash reserve is crucial for potential future distributions.
The Hugoton Royalty Trust's decision not to distribute cash in November reflects the impact of excess costs on net profits interests. Replenishing the cash reserve and monitoring future net profits income will be key for potential future distributions.