Hugoton Royalty Trust (HGTXU)

[Hockmir]

Hugoton is an Oil Production Royalty trust. The trust holds oil properties which others pay to drill and produce from, and the royalties are paid to the share holders. The size of the royalties per shareholder is determined by the price of oil (hence the royalty amount) and the amount of oil produced.

The percentage yield is determined by the market share price of the trust shares on the market versus the royalty payout.

Be aware that in any oil production royalty trust, there will eventually come a day when the oil runs out and the shareholders will own shares in non-producing land. Improved production techniques tend to push those dates further out than originally expected. Some royalty trusts also have set expiration terms and dates. Do your own due diligence before buying into any royalty trust to make sure you understand all terms and conditions of the trust.