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Hugoton Royalty Trust Message Board

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  • rrb1981 rrb1981 Mar 16, 2012 8:03 PM Flag

    Do any buyers here actually watch NG prices?

    Prices will remain depressed for an extended period of time.

    Baker Hughes rig count was just released today (it is released every Friday).

    Rig count dropped by 7 this past week, which was disappointing. Last week it dropped by 17. We need to drop another 100 rigs to put in a bottom. It will take 12 months for the oversupply to work off, perhaps even longer. Gas produced as a result of drilling for oil will continue to keep the market well supplied.

    I think HGT will reach a bottom soon, as people will take a longer term view. Distributions will actually lag the market a little bit, but I expect them to reach the bottom soon. There is probably some money to be made shorting HGT at these prices, but the risk reward is very thin. Probably a lot better options to short than a monthly distribution paying royalty trust.

2.47-0.22(-8.18%)Oct 21 4:00 PMEDT