Exxon Unit Extends Tender Offer Again

XTO Energy Inc., a wholly owned subsidiary of Exxon Mobil Corp., reported Wednesday that it is extending its tender offer to purchase all outstanding units in Hugoton Royalty Trust.

Formed in 1998 by XTO, Hugoton collects and distributes to unitholders net profits income generated by select gas-producing properties in Kansas, Oklahoma and Wyoming. Under the tender offer, XTO has proposed purchasing all outstanding units at a price of $0.20 per unit. Hugoton states on its website states that XTO is not a unitholder of the trust as of May 12, 2006.

On April 3, 2020, Hugoton confirmed that it had received the unsolicited tender offer from XTO. Eleven days later the trust reported that Simmons Bank, its trustee, “is not making a recommendation either for or against the Offer.” XTO launched the tender offer on April 1, 2020.

As Rigzone reported late last month, the tender offer had been scheduled to expire at the end of business (Eastern time) on May 12, 2020. Citing effects of the COVID-19 pandemic, XTO had extended the offer period to Tuesday of this week after 5.9 million (14.6 percent) of outstanding units had been tendered by noon Eastern on April 28, 2020. By 5 p.m. Eastern on May 12, nearly 6.8 million units (16.9 percent) had been validly tendered and not withdrawn, XTO stated Wednesday.

With the latest extension, the Hugoton offer is now scheduled to expire at 5 p.m. New York City time on May 26, 2020, XTO noted. The company added the tender offer statement allows for further extension or earlier termination.

To contact the author, email mveazey@rigzone.com.