HUGOTON ROYALTY TRUST (NYSE:HGT) Files An 8-K Results of Operations and Financial Condition
Item 2.02. Results of Operations and Financial Condition.

On January19, 2018, the Registrant issued a news release announcing that it will not declare a monthly cash distribution for the month of January 2018. A copy of the news release is furnished as Exhibit 99.1.

The information in this Current Report, including the news release attached hereto, is being furnished to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liabilities of that Section.

On January19, 2018, the Registrant issued a news release announcing that XTO Energy has advised the Trustee that it has reached a tentative settlement with the plaintiffs in the Chieftain class action royalty case. XTO Energy informed the Trustee on January17, 2018, that it believes that the portion of the settlement that relates to the Trust is as much as $20million. XTO Energy has advised the Trustee that the settlement requires final approval by a judge, which is expected to occur in late first quarter of 2018. The Trustee has asked to be advised by XTO as the matter progresses and, once additional information is made available to the Trustee, intends to review any claimed reductions in payment to the Trust based on the facts and circumstances of the settlement. The Trustee has previously stated that to the extent any such claimed reductions are similar to claimed reductions from XTO Energy’s settlement in the Fankhouser v. XTO Energy, Inc. class action lawsuit that an arbitration tribunal ruled were not permitted to be borne by the Trust, the Trustee would likely object to such claimed reductions.

If $20million of the Chieftain settlement is required to be borne by the Trust, it would result in excess costs under the Oklahoma conveyance that, based on recent distribution levels under such conveyance, would likely result in no distributions under the Oklahoma conveyance for several years.

Exhibit99.1 News Release dated January19, 2018

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HUGOTON ROYALTY TRUST Exhibit
EX-99.1 2 d500746dex991.htm EX-99.1 EX-99.1 EXHIBIT 99.1 [NEWS RELEASE LETTERHEAD OF HUGOTON ROYALTY TRUST APPEARS HERE] HUGOTON ROYALTY TRUST DECLARES NO JANUARY CASH DISTRIBUTION AND GIVES NOTICE OF TENTATIVE XTO SETTLEMENT AMOUNT Fort Worth,…
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About HUGOTON ROYALTY TRUST (NYSE:HGT)

Hugoton Royalty Trust is an express trust. The Company is created pursuant to the Hugoton Royalty Trust Indenture between XTO Energy Inc., as grantor, and NationsBank, N.A., as trustee. Southwest Bank is now the trustee of the trust of the Company. XTO Energy is a subsidiary of Exxon Mobil Corporation. Its properties are gas-producing properties located in the Hugoton area of Oklahoma and Kansas, the Anadarko Basin of Oklahoma and the Green River Basin of Wyoming. XTO Energy operates approximately 95% of the properties. The Company’s Hugoton area is a domestic natural gas producing area. XTO Energy is a producer in the Ringwood, Northwest Okeene and Cheyenne Valley fields of Major County, the Northeast Cedardale field of Woodward County and the Elk City field of Beckham County, the principal producing region of the properties in the Anadarko Basin. The Green River Basin is located in southwestern Wyoming.