|DECLARES MAY CASH DISTRIBUTION|
Dallas, Texas, May 18, 2012 – U.S. Trust, Bank of America Private Wealth Management, as Trustee
of the Hugoton Royalty Trust (NYSE – HGT), today declared a cash distribution to the holders of its
units of beneficial interest of $0.052539 per unit, payable on June 14, 2012, to unitholders of record on
May 31, 2012. The following table shows underlying gas sales and average prices attributable to the
net overriding royalty payments made by XTO Energy Inc. (XTO Energy) to the Trust for both the
current month and prior month distributions. Underlying gas sales volumes attributable to the current
month distribution were primarily produced in March.
Underlying Gas Sales
Volumes (Mcf) (a) Average Gas
Total Daily Price per Mcf
Current Month Distribution 1,644,000 53,000 $ 3.16
Prior Month Distribution 1,612,000 56,000 $ 3.30
(a) Sales volumes are recorded in the month the trust receives the related net profits income. Because
of this, sales volumes may fluctuate from month to month based on the timing of cash receipts.
XTO Energy has advised the trustee that it has deducted budgeted development costs of
$500,000, production expense of $2,090,000 and overhead of $900,000 in determining the royalty
payment to the Trust for the current month.
As noted in the first quarter Form 10-Q filed on April 27, 2012, XTO Energy reached a tentative
settlement on the Fankhouser litigation for $37 million which requires court approval. The hearing for
formal court approval is scheduled for May 23, 2012. Assuming the court approves the settlement, a
fairness hearing will be scheduled at a later date. XTO Energy has advised the trustee that the terms of
the conveyances governing the Trust’s net profits interests require the Trust to bear its 80% interest in
the settlement, or approximately $29.6 million. Upon payment of the settlement, it is expected that
costs will exceed revenues on properties underlying the Oklahoma and Kansas net profits interest.
Based on recent revenue and expense levels, it is expected that costs will exceed revenues for