Hugot Royalty Trust

What Hugot Royalty Trust does

Hugoton Royalty Trust is a passive grantor trust created on December 1, 1998 when XTO Energy Inc. conveyed 80% net profits interests (NPIs) in predominantly gas-producing properties located in Kansas, Oklahoma, and Wyoming. The trust has no operating business; its sole asset is the NPI claim, and its sole function is to collect monthly net profits income from the operator (historically XTO Energy; transactions closed with Mach Natural Resources, LP in May 2025) and distribute that cash to unitholders within ten business days of each month-end record date.

Net proceeds are calculated as gross revenues from the underlying working interests less production costs, development costs, and overhead; the trust then receives 80% of the residual. Distributions are reported as royalty/ordinary income on Form 1099-MISC. Units of beneficial interest were sold in an IPO in April–May 1999 and originally listed on the NYSE under HGT; the units moved to the OTCQX Best Market under HGTXU effective August 27, 2018, and the trust has 11–50 employees (essentially the trustee and administrative staff).

The trust is structurally finite: it has no defined termination date but may terminate if gross revenues fall below $2,000,000 for two successive fiscal years or by a unitholder vote. Distributions have collapsed — from $0.4146 per unit in 2022 to $0.2774 in 2023 to zero across multiple months in 2024–2025 — and net profits income was reported at $0 for Q3 2025. Argent Trust Company serves as trustee from Dallas, TX. Customer base consists entirely of passive unitholders purchasing units through brokerage accounts; the trust cannot buy back units and offers no DRIP.

Name

Hugot Royalty Trust

Legal name

Hugoton Royalty Trust

Website

https://hgt-hugoton.com

Company type

Public

Founded year

1998

Operating status

Operating

Headcount range

11–50 employees

Short description

Hugoton Royalty Trust is a passive grantor trust that holds 80% net profits interests in gas-producing properties in Kansas, Oklahoma, and Wyoming, collecting monthly net profits income from the operator and distributing it to public unitholders.

Ownership category

akta.pro rank

Product category

Royalty Trust

NAICS

Trusts, Estates, and Agency Accounts (52592), Trusts, Estates, and Agency Accounts (525920)

SIC

Mineral Royalty Traders (6795), Oil Royalty Traders (6792)

akta.pro primary industry

Real Assets — Real Asset Fund Platforms / Multi-Asset Real Assets (Diversified Real Assets Funds) (FSAHAIAM)

akta.pro secondary industries

Real Assets — Natural Resources & Minerals (Mining, Royalties/Streaming) (FSAHAIAK), Corporate & Institutional Trust Services (FSAAANAB)

Keywords

• Royalty trust units
• Natural gas royalties
• Monthly distributions
• Net profits interests
• Energy royalty trust

Headquarters

HQ city

Dallas

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Others

Revenue model

1. Net Profits Income from Royalty Properties: The trust collects 80% of net proceeds received from certain working interests in predominantly gas-producing properties in Kansas, Oklahoma and Wyoming. Net proceeds are calculated by deducting production costs, development costs and overhead from revenues. Net profits income is paid by XTO Energy on the last business day of each month based on net proceeds from the prior month.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

The Hugoton Royalty Trust is a publicly traded grantor trust that holds an 80% net profits interest in gas-producing properties located in Kansas, Oklahoma, and Wyoming, originally conveyed by XTO Energy Inc. on December 1, 1998. The trust functions as a passive income vehicle, paying monthly cash distributions to unitholders derived from the net proceeds of natural gas production on the underlying properties. Argent Trust Company, based in Dallas, Texas, serves as the trustee administering the trust.

Product overview

Hugoton Royalty Trust is a single-asset grantor trust that holds 80% net profits interests in gas-producing properties across Kansas, Oklahoma, and Wyoming. The trust collects monthly net profits income from XTO Energy and distributes it to unitholders. The company offers one product: units of beneficial interest traded on NYSE (HGT) and OTCQX (HGTXU). There are no modular products or add-on services.

Differentiator

Problem solved

Functional benefit

Products and services

• Hugoton Royalty Trust Units Tradeable units representing an 80% net profits interest in natural gas-producing properties in Kansas, Oklahoma, and Wyoming. Investors hold units to receive monthly cash distributions proportional to net profits from gas production.
• Monthly Net Profits Distributions Recurring monthly cash distributions to unitholders based on the net profits generated by the underlying gas-producing properties, less administrative and trust expenses.

Named customers2 records

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered major and core.

• Mach Natural Resources, LPmajorStrategic or Co-development Partner · 1 May 2025On May 1, 2025, Hugoton Royalty Trust announced the closing of XTO Energy's transactions with Mach Natural Resources, LP, alongside the execution of an Advance Distribution Agreement.
• XTO Energy Inc.coreStrategic or Co-development Partner · 1 December 1998XTO Energy Inc. conveyed 80% net profits interests in predominantly gas-producing properties in Kansas, Oklahoma and Wyoming to the trust on December 1, 1998. XTO Energy operates the underlying properties and pays net profits income to the trust monthly based on net proceeds. As of May 12, 2006, XTO Energy is no longer a unitholder of the trust.
• Argent Trust CompanycoreOthersArgent Trust Company serves as the Trustee of Hugoton Royalty Trust, managing trust operations, calculating distributions, and administering unitholder matters from their Dallas, TX office.

Scale indicators3 records

Recent moves7 records

Expansion highlights1 record

Direct peers

• Sabine Royalty Trust: Sabine Royalty Trust is a grantor trust holding royalty and overriding royalty interests in oil and gas properties across multiple states. Operates under an identical passive trust structure with monthly distributions to unitholders.
• Enduro Royalty Trust: Enduro Royalty Trust is a trust holding net profits interests in oil and gas properties, primarily in Texas, New Mexico, and Oklahoma. Shares the same net profits interest structure and passive trust vehicle design as Hugoton.
• Permian Basin Royalty Trust: Permian Basin Royalty Trust is a grantor trust holding royalty interests in oil and gas properties in the Permian Basin. It shares the exact same legal structure (grantor trust distributing net royalty income) as Hugoton Royalty Trust.
• Mesa Royalty Trust: Mesa Royalty Trust holds net profits interests in oil and gas properties. Another directly comparable trust vehicle with the same passive structure and monthly distribution mechanics as Hugoton.
• Cross Timbers Royalty Trust: Cross Timbers Royalty Trust is a grantor trust holding net profits interests in oil and gas properties, primarily in Oklahoma, Texas, and Kansas. Directly comparable passive royalty trust structure with similar geographic and operational exposure.
• Kimbell Royalty Partners, LP: Kimbell Royalty Partners is a publicly traded partnership (NYSE: KRP) that owns mineral and royalty interests in oil and gas properties across the U.S. Comparable mineral-rights holding model, though more actively managed and operationally diversified than Hugoton.
• Dorchester Minerals, L.P. Dorchester Minerals is a publicly traded partnership (NASDAQ: DMLP) that owns net profits interests, royalty interests, and overriding royalty interests in oil and gas properties — the closest direct comparable to Hugoton's net profits structure, though with broader property diversity.
• Black Stone Minerals, L.P. Black Stone Minerals is a publicly traded partnership (NYSE: BSM) that owns and manages mineral and royalty interests across major U.S. basins. Closely comparable business model of owning mineral/royalty interests and distributing cash flow to unit holders.
• San Juan Basin Royalty Trust: San Juan Basin Royalty Trust is a grantor trust holding overriding royalty interests in natural gas properties in the San Juan Basin. Operates under the same passive trust structure and delivers monthly net royalty income distributions to unitholders.

Emerging players

• Vanguard Natural Resources: Vanguard Natural Resources is an exploration and production company with a focus on natural gas and oil properties. Less directly comparable due to its operating (rather than purely royalty) model, but operates in similar basins with related commodity exposure.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat2 records

Key risks5 records

Key highlights5 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hugot Royalty Trust