Hugoton Royalty Trust No June Cash Distribution Due to Liquidity Concerns

The Hugoton Royalty Trust (the “Trust”) announced that it will not declare a cash distribution for June 2026 due to excess costs on all three conveyances of net profits interests, leading to insufficient net proceeds. The Trust's cash reserve was minimally increased by a refund, but the Trustee anticipates replenishing the reserve before any future distributions. Accumulated excess costs in Kansas, Oklahoma, and Wyoming, coupled with lower oil and natural gas prices and development costs, have raised substantial doubt about the Trust's ability to continue as a going concern. The Trustee has curtailed spending, deferred fees, and explored financing options, but believes financing is unlikely. Consequently, the Trust is considering alternatives such as termination or marketing its assets, though a sale is deemed unlikely in the near term. The Trust also reported that it was unable to file its quarterly report due to not seeking a new independent accounting firm, which could impact its SEC filings, unitholder reporting, and continued listing on the OTCQB, potentially leading to significant losses for unitholders.