Profile: Hugoton Royalty Trust (HGT)
14 Mar 2014
Hugoton Royalty Trust is an express trust. The Company 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. XTO Energy conveyed to the Company 80% interests in certain natural gas producing working interest properties in Kansas, Oklahoma and Wyoming under three separate conveyances. In exchange for this interest conveyance to the trust, 40 million units of beneficial interest were issued to XTO Energy. 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.
During the year ended December 31, 2011, daily sales volumes from the properties in the Hugoton area averaged approximately 16,900 thousand cubic feet of gas and 81 barrels of oil. Most of the production from the 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 delivers most of its Hugoton gas production to a gathering and processing system owned by a subsidiary.
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 26,500 thousand cubic feet of gas and 568 barrels of oil, in 2011. Major County’s productive zones include the Oswego, Red Fork, Inola, Chester, Manning, Mississippian, Hunton and Arbuckle formations. Within this area, XTO Energy drilled 1 gross (1.0 net) well and performed 35 workovers, in 2011. 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. During 2011, the gathering system collected approximately 10,500 thousand cubic feet per day, approximately 50% of which XTO Energy operated. The gathering subsidiary also provides contract operating services to properties in Woodward County, collecting approximately 9,500 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. During 2011, daily sales volumes from the properties in the Fontenelle field averaged 16,000 thousand cubic feet of natural gas and 32 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
910 Main Street,
P.O. Box 830650
DALLAS TX 75283-0650