This thing is worth less than $1. Add to that the proved reserves have been drastically revised downward, I won't be surprised to see it at $0.70. Good chance it will be liquidated if NG prices remain at these levels. Only a big move in NG prices to $3 can save this trust but I wouldn't bet on it though.
NG prices have been in free fall in February, hitting a 17 year low (!) - that's even worse than crude oil, yet HGT is for some reason 50% above its low... it seems people who place buy orders for this stock have no clue. I posted before - HGT cannot be worth over $1 and it is building a liability which has to be paid before any future distributions. At present prices, it is bleeding money and it would take a huge upward move in order for them to be profitable again. My price target is $0.70 on this one.
Bird-man, XTO isn't the trustee. they are like middle man taking money out of your wallet. They don't even operate the oil fields... XTO owns the NPIs and sold a portion of their NPI to the trust with a juicy management agreement. The Trustee just checks the accounting to make sure everyone can still add.
time to face the facts and sell your HGT before it goes into de listing category. Right now you can sell it to the chumps on this board for 3x what the asset is actually worth. The futures curve doesn't have this thing paying a distribution until 2018. But by then the XTO fee will have gone up. Selling assets to informed investors isn't a winning strategy.
Nat Gas down big today and HGT up. Go figure. Do people realize that HGT is Nat Gas ?? and isn't paying a dividend ??
Why don't we just get rid of XTO as the trustee and appoint someone else? It takes an 80% vote right? Who in their right mind would vote no? Someone will be willing to operate this stuff for far less than 1 MM per month in overhead.
but but but, what about the waaambulance coming to pick up american LNG? What about this time its different?
Batten down the hatches Sassy-and-Cassy, the HGT lovers are gonna tear you apart for calling a short and... gasp, being right about the distribution, or lack there of. Income investors seem to turn into rabbit bulls when you take away their income.
anyways, gotta go drop the HMS-Gobline at the boat yard, this HGT short is paying for a new paint job.
sure thing buddy. Today's price is a gift to short. take advantage of it. What old classy but sassy films didn't mention is as HGT drops zeros its also building up negative amounts on the NPIs... and that all has to get paid back before you get Liquid Natty exports don't change dropping production, rising fees and the slow, graceless death of HGT.
American liquefied natural gas is poised for a monumental breakthrough into international markets. For an economy struggling with the realities of low crude prices, U.S. LNG is a bright spot with an even brighter future. By the end of next month, the first ever LNG tanker from the southern United States will depart for Europe. This is all made possible with the completion of Cheniere Energy’s Sabine Pass LNG terminal on the Gulf Coast. Related: UAE Offers India Free Oil To Ease Storage Woes Just ten years ago LNG’s future did not look so promising. Industry analysts were predicting that the…
It's funny that it bounced already 80% from the low while ng prices haven't bounced at all and are near a multi-year low. It's just about guaranteed next distribution is also zero and the overall value cannot be over $1. Look at my past posts on ROYT where I told them the same back when ROYT was trading at $2.5 - $3.5 when people were pumping it. Now it's at $1 which is also the top of the range of where HGT should be.
If I understand this correctly, I don't have to file any state tax returns for this trust? I own 125 shares. Wyoming doesn't have a state tax. Oklahoma only requires you to file if your Oklahoma source income is over $1,000. Kansas requires you to file for any amount, but the Kansas wells did not produce anything for 2015.
C'mon buddy. The trust pays lease expenses and then on top of that pays XTO a management fee. If you want to call that overhead, more power to you. Your Trustee takes a trustee fee on top of that.
FYI in the past, the reserve report values the reserves before the overhead fee, i.e. based on revenue minus lease costs. not minus the "overhead fee" or your trustees fee. so you gotta back out the XTO overhead from the cashflow to get a real PV-10.
Its all academic really. I've checked with the Magic 8 ball and we are formally forecasting another zero distribution in Feb. Looking at march gas futures under 1.90 more zero distributions to follow.
You sir, are a liar. There is no "XTO fee" in the press releases. You are trying to equate "overhead" with "fee." Shame on you. My only question is to your motive. Probably better not to know.