HGTXU — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-03-31

• On March 25, 2025, XTO Energy informed the Trustee that it entered into a definitive agreement to divest XTO Energy’s interest in the assets underlying the Trust to Mach Natural Resources LP and its affiliates (“Mach”). The transaction closed on April 30, 2025, and Mach assumed XTO Energy’s obligati…

• The net profits interests entitle the Trust to receive 80% of the net proceeds from the sale of oil and gas from the underlying properties. Each month XTO Energy or Mach determines the amount of cash received from the sale of production and deducts property and production taxes, production expense, …

• As a working interest owner, XTO Energy or Mach, as applicable, can generally decline participation in any operation and allow consenting parties to conduct such operations, as provided under the operating agreements. XTO Energy or Mach also can assign, sell,

• or otherwise transfer its interest in the underlying properties, subject to the net profits interests, or can abandon an underlying property if it is incapable of producing in paying quantities, as determined by XTO Energy or Mach.

• To the extent allowed, XTO Energy or Mach, as applicable is responsible for marketing its production from the underlying properties under existing sales contracts, or new arrangements on the best terms reasonably obtainable in the circumstances. See “Pricing and Sales Information” under Item 2. Prop…

Text removed vs the prior filing · source: 10-K · 2025-03-31

• XTO Energy Inc. has informed the Trustee that it entered into a definitive agreement on March 25, 2025, to divest XTO Energy’s interest in the assets underlying the Trust to Mach Natural Resources LP and its affiliates (“Mach”). Subject to typical due diligence and closing conditions, the transactio…

• The net profits interests entitle the Trust to receive 80% of the net proceeds from the sale of oil and gas from the underlying properties. Each month XTO Energy determines the amount of cash received from the sale of production and deducts property and production taxes, production expense, developm…

• As a working interest owner, XTO Energy can generally decline participation in any operation and allow consenting parties to conduct such operations, as provided under the operating agreements. XTO Energy also can assign, sell, or otherwise transfer its interest in the underlying properties, subject…

• To the extent allowed, XTO Energy is responsible for marketing its production from the underlying properties under existing sales contracts, or new arrangements on the best terms reasonably obtainable in the circumstances. See “Pricing and Sales Information” under Item 2. Properties.

• Net profits income received by the Trust on or before the last business day of the month is related to net proceeds received by XTO Energy in the preceding month, and is generally attributable to oil and gas production two months prior. The amount to be distributed to unitholders each month by the T…

Text added vs the prior filing · source: 10-K · 2026-03-31

• All three of the Trust’s conveyances are in excess costs resulting in no net proceeds to the Trust and a reduction in the Trust’s expense reserve, which have resulted in no unitholder distributions since July 2023. These conditions raise substantial doubt about the

• Trust’s ability to continue as a going concern as the Trust does not have sufficient cash to meet its obligations during the one-year period after the date the financial statements are issued. The Trust’s financial statements do not include any adjustments that might result from the outcome of this …

• On August 27, 2018, the Trust units were delisted from the NYSE and began to be quoted on the OTCQX, which is maintained by the OTC Market Group Inc., under the symbol “HGTXU.” The Trustee received notice from the OTC Markets Group Inc. dated April 16, 2020, notifying the Trustee that the Trust was …

• the units are moved to OTC Pink or elsewhere, they will likely be subject to greater volatility and lower trading volumes than when the Trust units were listed on the OTCQB. This could depress the trading price of the Trust units and make it more difficult to purchase, dispose of or obtain accurate …

• Mach may transfer its interest in the underlying properties without the consent of the Trust or the Trust unitholders.

Text removed vs the prior filing · source: 10-K · 2025-03-31

• All three of the Trust’s conveyances are in excess costs resulting in no net proceeds to the Trust and a reduction in the Trust’s expense reserve, which have resulted in no unitholder distributions since July 2023. These conditions raise substantial doubt about the Trust’s ability to continue as a g…

• On August 27, 2018, the Trust units were delisted from the NYSE and began to be quoted on the OTCQX, which is maintained by the OTC Market Group Inc., under the symbol “HGTXU.” The Trustee received notice from the OTC Markets Group Inc. dated April 16, 2020, notifying the Trustee that the Trust was …

• net profits interests will cease to produce in commercial quantities and the Trust will, therefore, cease to receive any net proceeds therefrom.

• XTO Energy may transfer its interest in the underlying properties without the consent of the Trust or the Trust unitholders.

• XTO Energy may at any time transfer all or part of its interest in the underlying properties to another party. Neither the Trust nor the Trust unitholders are entitled to vote on any transfer of the properties underlying the Trust’s net profits interests, and the Trust will not receive any proceeds …