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Dallas, May 20, 2021 / PRNewswire /-Simmons Bank (Simmons Bank), is Hugoton Royalty Trust (OTCQB:HGTXU) (Hereinafter referred to as “Trust”) today announced that the arbitration panel (hereinafter referred to as the “panel”) has made the second final award on the amount of arbitration between the trustee and XTO Energy Inc. (hereinafter referred to as “XTO Energy”). XTO Energy in Boss A class action lawsuit that can be charged to the trust fund as a production cost.The team excluded from its decision 80 million USD In the solution, “the trust has an obligation to 48 million USD The plaintiff is Boss File a lawsuit on the basis of the settlement of the lawsuit.The trust company is not obligated to pay any share of the trust $32 million The lawyer received from the plaintiff Boss The final arrears will be treated as excess costs of the litigation. Oklahoma delivery. XTO Energy and the trustee are determining some of them. 48 million USD The distributable trust property is collected as an excess fee of the trust, but it is estimated to be about $14.6 million.
As previously disclosed, XTO Energy informed the trustee that it reached a settlement with the plaintiff in the US settlement. Boss Class action royalty case.on July 27, 2018, The final distribution plan has been approved by the court.According to the final distribution plan, XTO Energy informs the trustee that it believes US$24.3 million Additional production costs should be allocated to the trust.on May 2, 2018, The trustee submitted an arbitration request to seek a declaratory ruling: Boss Settlement is not a production cost, and XTO Energy is prohibited from charging settlement as a production cost under the transportation mode, or reducing the trust’s current or future payments due to the following reasons: Boss litigation. The Trust Fund and XTO conducted interim hearings on claims related to: Boss Settled on October 12-13, 2020. In arbitration, the trustee argued that US$24.3 million Related to distribution Boss Settlement is not a production cost. Therefore, the trust’s share of net income should not be adjusted. However, XTO Energy argued that US$24.3 million It is the production cost, and the trust’s share of net income should be reduced.
on January 20, 2021, The expert panel issued a “corrected interim final ruling (i)[ing] The trust company argues that XTO has no right to collect XTO payments from the trustee in accordance with Article 1.18(a)(i) under “Transportation Vehicles” as a right to liquidate its concession Boss Litigation” and (ii) Description”[t]His next stage will be determined Boss The settlement fee (if any) can be collected by exercising the rights determined by the group. After briefings by both parties, the group issued the second provisional final ruling mentioned above.
This Oklahoma Currently, transportation has been affected by excess fees, and these excess fees must be recovered before being distributed to unit holders.Therefore, the trust’s share of the net income can be subtracted from the partial settlement amount determined by the arbitration panel, and Oklahoma Shipping will result in additional excess costs Oklahoma Transportation may cause Oklahoma Transport for an additional few years, and at the same time recover these additional excess costs.The ruling is completed and Boss settlement.
The trustee’s other claims related to the amount in dispute when calculating the trust’s net income from 2014 to 2016 were branched from the initial arbitration and will be heard at a later date, which is yet to be determined.
For more information about the trust, please visit our website: www.hgt-hugoton.com.
Statements in this press release regarding future events or circumstances are forward-looking statements. The actual actual results in the future, including development costs and future net profits, may be due to changes in natural gas prices and other economic conditions affecting the natural gas industry, as well as other factors described in Part A, Part I of the Annual Report of the Trust Fund 10-K It’s quite different.As of the year December 31, 2020 And the follow-up 10-Q form at the end of the quarter March 31, 2021.
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SOURCE Hugoton Royal Trust
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