The board of directors said the dividend is payable on July 15 to holders of record at the close of business on June 28. The trust reported that gas production for the properties from which the royalty was carved totaled 1,541,000 Mcf with an average gas price of $4.23.
Hugoton Royalty Trust was created on Dec. 1, 1998 when XTO Energy conveyed 80% net profits interests in certain predominantly gas-producing properties located in Kansas, Oklahoma, and Wyoming to the trust. The trust was created to collect and distribute to unitholders monthly net profits.
Hugoton and XTO are currently in arbitration over whether costs associated with litigation in which XTO was involved should be deducted from the Trust's revenues.
The latest payment would equate to approximately $0.98-per-unit annual dividend, yielding 10.3% based on the closing price today of Hugoton Royalty Trust's stock.
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