XTO Energy Extends Offering to Buy Trust Units
XTO Energy Inc. extended the offering period of its previously announced proposal to purchase all outstanding units of Hugoton Royalty Trust at a price of $0.20 per unit. The offer is now scheduled to expire the end of business (Eastern Standard Time) on May 12, 2020.
The offer was extended to allow additional time, in light of the impacts of the COVID-19 pandemic, for unitholders to complete and return related documents and to give instructions to their brokers.
As of noon EST on April 28, 2020--the last business day prior to the extension announcement—5.9 million units had been tendered, representing approximately 14.6% of the outstanding units.
Hugoton Royalty Trust was created in December 1998 when XTO Energy Inc. conveyed 80% net profits interests in select gas-producing properties in Kansas, Oklahoma and Wyoming to the trust. The trust was created to collect and distribute to unitholders monthly net profits income related to the 80% net profits interests.
US-based XTO Energy, a subsidiary of Exxon Mobil Corp., is an oil and gas producer with expertise in developing tight gas, shale gas and unconventional oil resources. It operates throughout the United States and Western Canada, from the Great Plains to Appalachia. The company owns interest in more than 50,000 producing oil and natural gas wells across the United States and holds more than 11 million acres. It also provides operational support for unconventional resource development in Argentina.
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