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Hugoton Royalty Trust Message Board

  • rrb1981 rrb1981 May 23, 2012 7:39 AM Flag

    Speculative Play below $1

    If all three lawsuits are successful, HGT will be in the sub $1/range. Even before all the cases are settled, this looks like it is going to be sub $2 until the verdicts are announced.

    When/if it drops below $1/unit, it might be a very good speculative play, but you will have to wait 2 or 3 yrs before you receive any distributions.

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    • <<<When/if it drops below $1/unit, it might be a very good speculative play, but you will have to wait 2 or 3 yrs before you receive any distributions. >>>

      And the key is...having to wait, and wait and wait and hope you get a distribution again, and on a depleting asset as well.

      • 1 Reply to cptn_buzzkill
      • from XTO:

        "Based on recent revenue and expense levels, it is expected that costs will exceed revenues for approximately 18 months; however, changes in oil or natural gas prices or expenses could cause the time period to increase or decrease correspondingly. The net profits interest from Wyoming is unaffected and payments will continue to be made from those properties. The settlement is expected to decrease the amount of net profits going forward for the Oklahoma and Kansas properties due to changes in the way costs (such as gathering, compression and fuel) associated with operating the properties will be allocated, resulting in a net gain to the royalty interest owners. XTO Energy has stated that this expected net upward revision for the royalty interest owners will reduce applicable net profits to XTO Energy and, correspondingly, to the Trust."


        ...so no income on this trust for AT LEAST 14 months and then a REDUCED income is expected.

        ...you dead cat bounce players may get a bounce, but you better sell into it and step into something else with a little more solid foundation. Just sayin'.

    • What's the timeline on the other suits?
      When will we know where we stand?

 
HGT
1.50-0.02(-1.32%)May 27 4:00 PMEDT