Hugoton Royalty Trust will not declare a cash distribution to unit holders for October 2026 because excess cost positions affect all three net profits interest conveyances. The Trustee does not foresee distributions in the near term and anticipates replenishing the cash reserve from any future net profits income before declaring distributions; the reserve decreased by $4,000 for Trust expenses.
Accumulated excess costs have resulted in no unitholder distributions since July 2023. The Trustee disclosed substantial doubt about the Trust’s ability to continue as a going concern, citing insufficient cash to meet obligations during the one-year period after year-end financial statements are issued. It may consider termination or marketing the Trust’s interests for sale; any material sale or termination requires approval by at least 80 percent of all outstanding units.
The Trust reported it was unable to file the Form 10-Q for the quarter ended June 30, 2026, because it was not currently seeking a new independent registered public accounting firm due to cash constraints. Its units were removed from OTCQB on July 17, 2026, and now trade on Expert Market on an unsolicited-quotes-only basis.
Hugoton Royalty Trust (HGTXU), administered by Argent Trust Company, reported that it will not pay a cash distribution for September 2026 because all three net profits interest conveyances remain in excess cost positions and cash reserves declined by $4,000 after paying expenses. The Trustee plans to replenish the cash reserve before declaring any future distributions and does not foresee distributions in the near term.
The Trust reiterates that accumulated excess costs and reduced reserves have resulted in no unitholder distributions since July 2023 and states that these conditions raise substantial doubt about its ability to continue as a going concern. Attempts to secure financing and solicit interest in the Trust’s assets have not produced viable options, and alternatives under review include a potential termination of the Trust or sale of its net profits interests, each requiring approval by at least 80% of outstanding units.
The Trust also discloses that, due to cash constraints and the lack of an auditor, it has been unable to file required SEC reports, and its units were removed from the OTCQB on July 17, 2026 and now trade on the Expert Market. Mach Natural Resources reported underlying June production of 670,000 Mcf of gas and 14,000 Bbls of oil, with cumulative excess costs of $3.408 million for Kansas, $15.154 million for Oklahoma, and $13.312 million for Wyoming, excluding $1 million of advance distributions that may be recouped from future net profits.
Hugoton Royalty Trust (HGTXU), administered by Argent Trust Company, announced there will be no cash distribution to unitholders for May 2026 because all three net profits interests remain in excess cost positions. The Trust’s cash reserve was reduced by $8,000 to pay expenses, and the Trustee does not foresee any near-term distributions.
Accumulated excess costs on the Kansas, Oklahoma, and Wyoming conveyances have prevented any distributions since July 2023 and depleted the expense reserve. The Trust states these conditions raise substantial doubt about its ability to continue as a going concern, and that it may need drastic measures, including a potential sale of assets or termination of the Trust, which would require approval by at least 80% of outstanding units.
The Trust is not engaging a new independent registered public accounting firm due to cash constraints and has filed a Form 12b-25 indicating it cannot file its June 30, 2026 Form 10-Q. It notes that unitholders and potential investors may have limited or no information, and units were removed from the OTCQB on July 17, 2026 and now trade on the Expert Market on an unsolicited quotes-only basis. Significant excess cost balances remain on all three state conveyances, further limiting the prospect of future net profits.
Hugoton Royalty Trust, administered by Argent Trust Company, reported that there will be no cash distribution to unitholders for May 2026 because all three net profits interests remain in excess cost positions, and the Trust’s cash reserve was reduced by $1,000 to pay expenses.
Accumulated excess costs in Kansas, Oklahoma and Wyoming, together with lower oil and natural gas prices, development spending and $1,000,000 of prior advance distributions, have led to no distributions since July 2023 and raised substantial doubt about the Trust’s ability to continue as a going concern. The Trustee has deferred its fee since April 2024 and is evaluating alternatives, including a possible asset sale or termination, each requiring approval of at least 80% of outstanding units and which may still leave nothing for unitholders.
Because cash constraints prevent engagement of a new auditor, the Trust filed Form 12b-25 and is not able to continue making SEC filings, audited financial statements or regular reporting, limiting information available to investors. The units were removed from the OTCQB on July 17, 2026 and now trade on the Expert Market on an unsolicited quotes only basis, and the Trust warns that unitholders could lose their entire investment.
Hugoton Royalty Trust reported that it will not declare a cash distribution for May 2026 and highlighted serious liquidity issues. Excess costs on its Kansas, Oklahoma, and Wyoming net profits interests have prevented any unitholder distributions since July 2023 and have eroded its cash reserve. The Trustee increased the cash reserve by $4,000 from a refunded expense but does not foresee distributions in the near term and sees substantial doubt about the Trust’s ability to continue as a going concern. The Trustee is reviewing alternatives including a potential sale of assets or termination of the Trust, though prior outreach to potential buyers produced no interest and any sale might not yield funds for unitholders after obligations are paid.
Hugoton Royalty Trust, managed by Argent Trust Company, announced it will not pay a cash distribution for May 2026 because all three net profits interests remain in excess cost positions. The Trust also reduced its cash reserve by $5,000 to cover expenses and does not foresee distributions in the near term.
The Trustee reports accumulated excess costs and low oil and gas prices have prevented any unitholder distributions since July 2023 and have raised substantial doubt about the Trust’s ability to continue as a going concern. Cash shortages have led to dismissal of the prior audit firm, a halt to engaging a new auditor, and inability to continue SEC filings, which may jeopardize the OTCQB listing. The Trustee is evaluating options including a possible sale of assets or termination of the Trust, and warns unitholders could face significant or total losses.
Hugoton Royalty Trust announced there will be no cash distribution for April 2026 because all three net profits interests remain in excess cost positions. The cash reserve was reduced by $97,000 for expenses, and the Trustee does not foresee any distributions in the near term.
The Trust highlights severe liquidity pressure and states that accumulated excess costs and low commodity prices have raised substantial doubt about its ability to continue as a going concern. It is reviewing options including a potential sale of assets or termination, both requiring 80% unitholder approval, but notes a sale may be unlikely and distributions might not result even if a sale occurs.
The Trust dismissed Grant Thornton LLP as auditor and does not expect to engage a new firm or maintain future SEC reporting once its reserve is depleted. It warns that unitholders may have limited or no information on which to base decisions and could ultimately lose a significant portion or all of their investment.
Hugoton Royalty Trust dismissed Grant Thornton LLP as its independent registered public accounting firm, following a decision recommended and approved by Argent Trust Company, the Trustee. Grant Thornton’s most recent audit report on the year ended December 31, 2025 included an explanatory paragraph expressing substantial doubt about the Trust’s ability to continue as a going concern, but otherwise was not adverse or qualified.
The Trust states there were no disagreements with Grant Thornton on accounting principles, financial statement disclosure, or audit procedures, and no reportable events under Regulation S-K Item 304(a)(1)(v). Because of cash constraints, the Trust is not currently seeking to engage a new independent registered public accounting firm.