Hugoton Royalty Trust Files 2023 Annual Report on Form 10-K

TL;DR

<b>Hugoton Royalty Trust has filed its 2023 annual report (10-K) detailing its financial performance and operations.</b>

AI Summary

HUGOTON ROYALTY TRUST (HGTXU) filed a Annual Report (10-K) with the SEC on April 1, 2024. Hugoton Royalty Trust filed its annual report for the fiscal year ended December 31, 2023. The filing is a Form 10-K, indicating an annual report. The trust is incorporated in Texas and has an IRS Employer Identification No. of 58-6379215. The principal executive offices are located in Dallas, Texas, c/o Argent Trust Company. Units of Beneficial Interest trade under the symbol HGTXU on the OTCQB exchange.

Why It Matters

For investors and stakeholders tracking HUGOTON ROYALTY TRUST, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Hugoton Royalty Trust's financial health and operational status for the fiscal year 2023, crucial for investors to assess performance and future prospects. The report's details on its business address, trustee, and trading information on OTCQB are essential for understanding the trust's structure and market accessibility.

Risk Assessment

Risk Level: low — HUGOTON ROYALTY TRUST shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate financial distress signals, indicating a low level of immediate risk.

Analyst Insight

Investors should review the full 10-K filing to understand Hugoton Royalty Trust's financial performance, operational details, and any disclosed risks for the fiscal year 2023.

Key Numbers

• 2023 — Fiscal Year End (Annual report for the fiscal year ended December 31, 2023)
• 10-K — Form Type (Annual Report Filing Type)
• 001-10476 — SEC File Number (Commission File Number)
• OTCQB — Exchange (Name of each exchange on which registered)

Key Players & Entities

• Hugoton Royalty Trust (company) — Filer name
• 2023 (date) — Fiscal year end
• December 31, 2023 (date) — Fiscal year end
• Texas (location) — State of incorporation
• 58-6379215 (organization) — IRS Employer Identification No.
• Argent Trust Company (company) — Address of principal executive offices
• Dallas (location) — City of principal executive offices
• HGTXU (ticker) — Trading symbol

FAQ

Industry Context

Hugoton Royalty Trust operates within the oil and gas royalty sector, focusing on the acquisition and management of royalty interests.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring annual reports from public companies to ensure transparency for investors.

What Investors Should Do

1. Analyze the full 10-K for detailed financial statements and management discussion.
2. Research the trading performance of HGTXU on the OTCQB.
3. Investigate the role and services of Argent Trust Company as the corporate trustee.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-04-01: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the annual report for the fiscal year ended December 31, 2023, following the previous year's filings.

Key Financial Figures

• $36.0 million — econd fiscal quarter) was approximately $36.0 million. The number of units of beneficial in
• $3 million — underlying properties are approximately $3 million for 2024 which could exceed revenues fo
• $24.3 million — Trustee that it believes approximately $24.3 million in additional production costs should b
• $80 million — its decision has ruled that out of the $80 million settlement, the Trust is obligated to p
• $48 million — y its share under the Conveyance of the $48 million that was received by the plaintiffs in
• $32 million — the Conveyance to pay any share of the $32 million received by the lawyers for the plainti
• $14.6 million — st, but estimate it to be approximately $14.6 million net to the Trust. The reduction in th
• $2 million — ember 31, 2019, the Trust had less than $2 million in net tangible assets, average revenue
• $6 million — le assets, average revenue of less than $6 million over the past three years, and the Trus
• $5 — ears, and the Trusts bid price is below $5 per share. The notice stated that if th

Filing Documents

• d752648d10k.htm (10-K) — 513KB
• d752648dex23.htm (EX-23) — 4KB
• d752648dex31.htm (EX-31) — 11KB
• d752648dex32.htm (EX-32) — 4KB
• d752648dex97.htm (EX-97) — 22KB
• d752648dex991.htm (EX-99.1) — 43KB
• 0001193125-24-083466.txt (&nbsp;) — 598KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 3 Item 1B. Unresolved Staff Comments 11 Item 1C. Cybersecurity 11 Item 2.

Properties

Properties 12 Item 3.

Legal Proceedings

Legal Proceedings 22 Item 4. Mine Safety Disclosures 23 Part II Item 5. Market for Units of the Trust, Related Unitholder Matters and Trust Purchases of Units 24 Item 6. [Reserved] 24 Item 7. Trustees Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 31 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 44 Item 9A.

Controls and Procedures

Controls and Procedures 44 Item 9B. Other Information 44 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 44 Part III Item 10. Directors, Executive Officers and Corporate Governance 45 Item 11.

Executive Compensation

Executive Compensation 45 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters 46 Item 13. Certain Relationships and Related Transactions, and Director Independence 46 Item 14. Principal Accountant Fees and Services 46 Part IV Item 15. Exhibits and Financial Statement Schedules 47

Signatures

Signatures 48 i Table of Contents HUGOTON ROYALTY TRUST GLOSSARY OF TERMS The following are definitions of significant terms used in this Annual Report on Form 10-K: Bbl Barrel (of oil) Bcf Billion cubic feet (of natural gas) BOE Barrel of oil equivalent Mcf Thousand cubic feet (of natural gas) MMBtu One million British Thermal Units, a common energy measurement net proceeds Gross proceeds received by XTO Energy from sale of production from the underlying properties, less applicable costs, as defined in the net profits interest conveyances. net profits income Net proceeds multiplied by the net profits percentage of 80%, which is paid to the Trust by XTO Energy. Net profits income is referred to as royalty income for income tax purposes. net profits interest An interest in an oil and gas property measured by net profits from the sale of production, rather than a specific portion of production. The following defined net profits interests were conveyed to the Trust from the underlying properties: 80% net profits interests - interests that entitle the Trust to receive 80% of the net proceeds from the underlying properties. underlying properties XTO Energys interest in certain oil and gas properties from which the net profits interests were conveyed. The underlying properties include working interests in predominantly gas-producing properties located in Kansas, Oklahoma and Wyoming. working interest An operating interest in an oil and gas property that provides the owner a specified share of production that is subject to all production expense and development costs. 1 Table of Contents PART I ITEM1. BUSINESS Hugoton Royalty Trust (the Trust) is an express trust created under the laws of Texas pursuant to the Hugoton Royalty Trust Indenture entered into on December 1, 1998, between XTO Energy Inc. (formerly known as Cross Timbers Oil Company and, hereafter, XTO Energy), as grantor, and NationsBank, N.A., as T

View Full Filing

View this 10-K filing on SEC EDGAR