Profile: Hugoton Royalty Trust (HGT)
2 Jul 2015
Hugoton Royalty Trust, incorporated in 1998, 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. Bank of America, N.A., successor to NationsBank, N.A., is the trustee of the Company. XTO Energy is a wholly owned 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. As of December 31, 2014, daily sales volumes from the underlying properties in the Hugoton area averaged approximately 13,400 thousand cubic feet (Mcf) of gas and 28 barrel (Bbls) of oil. Most of the production from the underlying properties in the Hugoton area is from the Chase formation. XTO Energy has begun to develop other formations that underlie the 79,500 net acres held by production by the Chase formation wells, which include the Council Grove, Morrow, Chester and St. Louis formations.
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. Daily sales volumes from the properties in the Anadarko Basin averaged 21,700 Mcf of gas and 509 Bbls of oil in 2014. Major County's productive zones include the Oswego, Red Fork, Inola, and Chester, Manning, Mississippian, Hunton and Arbuckle formations. Woodward County's productive zones include the Cottage Grove, Oswego, Chester and Mississippian formations. The Elk City field on the eastern edge of Beckham County produces oil and gas from an anticline with stratigraphic trapping features. Production zones include the Hoxbar, Atoka and Morrow formations. A gathering subsidiary of XTO Energy operates a 300-mile gathering system and pipeline in the Major County area. As of December 31, 2014, the gathering system collected approximately 10,000 Mcf per day, approximately 50% of which XTO Energy operated. The gathering subsidiary also provides contract operating services to properties in Woodward County, collecting approximately 5,000 thousand cubic feet per day. XTO Energy also sells gas directly to its marketing subsidiary, which then sells the gas to third parties.
Green River Basin
The Green River Basin is located in southwestern Wyoming. The producing reservoirs are the Frontier, Baxter and Dakota sandstones. As of December 31, 2014, daily sales volumes from the properties in the Fontenelle field averaged 15,100 thousand cubic feet of natural gas and 44 barrels of oil. XTO Energy markets the gas produced from the Fontenelle field and nearby properties under various marketing arrangements. XTO Energy transports and sells this gas directly to the markets.
Hugoton Royalty Trust
901 Main St Fl 17
DALLAS TX 75202-3738