On March 20, 2026, Hugoton Royalty Trust, managed by Argent Trust Company, announced that it will not declare a cash distribution for the month of March 2026. This decision is attributed to the excess cost positions across all three of the Trust's conveyances of net profits interests. The Trust's cash reserve has been reduced by $27,000 to cover Trust expenses, leading to a significant liquidity concern. The Trustee indicated that no distributions have been made to unitholders since July 2023 due to accumulated excess costs, which have resulted in insufficient net proceeds. The current financial situation raises substantial doubt about the Trust's ability to continue as a going concern, as it lacks sufficient cash to meet its obligations over the next year. Factors contributing to this cash shortage include lower oil and natural gas prices, development costs, and prior advance distributions totaling $1,000,000. The Trustee has taken measures to curtail spending, including deferring unnecessary expenses, but the dwindling funds may necessitate drastic measures to ensure the Trust's survival. The Trustee is exploring financing options but believes that securing sufficient funds for long-term liquidity needs is unlikely. Additionally, the Trustee is considering alternatives, including the potential termination of the Trust or marketing its interests for sale. However, no interest has been generated from discussions with potential buyers, and any significant sale or termination would require approval from at least 80% of unitholders. The Trust's future remains uncertain as it navigates these financial challenges.

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