What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-12 compared with 2025-08-13 · 98 added, 103 removed, 452 unchanged (31% of the section changed)

2 unchanged sentences

OF ASSETS, LIABILITIES AND TRUST CORPUS

September 30,

Operating cash

Reserve fund cash and short-term investments

LIABILITIES AND TRUST CORPUS

Reserve fund cash and

short-term investments

LIABILITIES AND TRUST

Reserve fund liability

Note Payable to HOGA

Trust corpus (230,172,696 royalty trust units authorized, issued and

outstanding as of June 30, 2025 and 2024)

Total liabilities and trust corpus

Trust corpus (230,172,696 royalty trust units

authorized, issued and

outstanding as of September 30, 2025 and

Total liabilities and

accompanying notes are an integral part of these financial statements.

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Interest income and other

Administrative expenses

Administrative expenses in excess of income

Distributable income (Note 4)

Royalty trust units outstanding at end of period

Administrative

expenses in excess of income

trust units outstanding at end of period

accompanying notes are an integral part of these financial statements.

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Trust corpus, beginning of period

Trust Contributions

Administrative expenses in excess of income

Administrative

expenses in excess of income

Trust corpus, end of period

20 unchanged sentences

of a normal recurring nature.

Operating results for the three- and six-month periods ended June 30, 2025, are not necessarily indicative

Operating results for the three- and nine-month periods ended September 30, 2025, are not necessarily indicative

of the results that may be expected for the year ending December 31, 2025.

85 unchanged sentences

were no amortization charges related to production volumes associated with the onshore Highlander subject interest during the three-

and six-month periods ended June 30, 2025 and 2024, as the Royalty Trust fully impaired the carrying value of the onshore Highlander

and nine-month periods ended September 30, 2025 and 2024, as the Royalty Trust fully impaired the carrying value of the onshore Highlander

subject interest during the year ended December 31, 2023.

25 unchanged sentences

and HOGA currently expects to reach the planned depth of approximately 30,000 feet in the fourth quarter of 2025.

Nevertheless,

the future production status of this well remains unknown.

Neither the Trustee nor the Royalty Trust unitholders has any right to control

or influence operations of the subject interest.

Nevertheless, the future

production status of this well remains unknown.

Neither the Trustee nor the Royalty Trust unitholders has any right to control or influence

operations of the subject interest.

Royalty Trust fully impaired the carrying value of the onshore Highlander subject interest by $308,071 during the quarter ended March

3 unchanged sentences

recognized the remaining carrying value of the onshore Highlander subject interest as of March 31, 2023 as an impairment loss.

amortization was $6,756,701 at June 30, 2025 and December 31, 2024.

amortization was $6,756,701 at September 30, 2025 and December 31, 2024.

RELATED PARTY TRANSACTIONS

2 unchanged sentences

The Royalty Trust did not receive royalties during the three-

and six-month periods ended June 30, 2025 and 2024.

and nine-month periods ended September 30, 2025 and 2024.

Royalties received by the Royalty Trust must first be used to (i) satisfy Royalty

Trust administrative expenses and (ii) reduce Royalty Trust indebtedness.

As of June 30, 2025, the Royalty Trust has an outstanding note

payable to HOGA of $253,219.

As of June 30, 2025, the Trustee has established a minimum cash reserve of $302,500.

As a result, distributions

will be made to Royalty Trust unitholders only when royalties received less administrative expenses incurred and repayment of any indebtedness

exceeds the minimum cash reserve.

As of September 30, 2025, the Royalty Trust has an outstanding

note payable to HOGA of $361,664.

As of September 30, 2025, the Trustee has established a minimum cash reserve of $302,500.

distributions will be made to Royalty Trust unitholders only when royalties received less administrative expenses incurred and repayment

of any indebtedness exceeds the minimum cash reserve.

quarter, the Trustee will determine the amount of funds available for distribution to the Royalty Trust unitholders.

3 unchanged sentences

Available funds will be reduced by any cash the Trustee reserves against future liabilities.

As of June 30, 2025, the Trustee has established a minimum cash reserve of $302,500.

The minimum cash reserve is not reflective of the

Royalty Trust’s operating cash balance as of June 30, 2025 and December 31, 2024.

As of September 30, 2025, the Trustee has established a minimum cash reserve of $302,500.

The minimum cash reserve is not reflective

of the Royalty Trust’s operating cash balance as of September 30, 2025 and December 31, 2024.

with the distribution to unitholders in the first quarter of 2022, the Royalty Trust withheld $8,750 from the funds otherwise available

for distribution each quarter through the first quarter of 2023, with the intent of gradually building a cash reserve of approximately

As no proceeds were available for distribution in the three-month period ended June 30, 2025, the Royalty Trust did not withhold

any funds for the cash reserve.

Unless a new well is drilled on the onshore Highlander subject interest, as discussed in Note 2 above,

and produces hydrocarbons in commercial quantities, the Royalty Trust does not intend to withhold funds for the cash reserve in the future,

as the Royalty Trust does not expect to have any cash available to distribute to unitholders in future periods.

This cash is reserved

for the payment of future known, anticipated or contingent expenses or liabilities of the Royalty Trust.

The Trustee may increase or

decrease the targeted cash reserve amount at any time and may increase or decrease the rate at which it withholds funds to build the

cash reserve at any time, without advance notice to the unitholders.

Cash held in reserve will be invested as required by the Royalty

Trust Agreement.

Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated or

contingent expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds.

For additional

information regarding distributions to Royalty Trust unitholders, see Note 5.

As no proceeds were available for distribution in the three-month period ended September 30, 2025, the Royalty Trust did not

withhold any funds for the cash reserve.

Unless a new well is drilled on the onshore Highlander subject interest, as discussed in Note

2 above, and produces hydrocarbons in commercial quantities, the Royalty Trust does not intend to withhold funds for the cash reserve

in the future, as the Royalty Trust does not expect to have any cash available to distribute to unitholders in future periods.

is reserved for the payment of future known, anticipated or contingent expenses or liabilities of the Royalty Trust.

The Trustee may

increase or decrease the targeted cash reserve amount at any time and may increase or decrease the rate at which it withholds funds to

build the cash reserve at any time, without advance notice to the unitholders.

Cash held in reserve will be invested as required by the

Royalty Trust Agreement.

Any cash reserved in excess of the amount necessary to pay or provide for the payment of future known, anticipated

or contingent expenses or liabilities eventually will be distributed to unitholders, together with interest earned on the funds.

additional information regarding distributions to Royalty Trust unitholders, see Note 5.

of Administrative Expenses.

7 unchanged sentences

of $350,000 for the payment of trust expenses incurred during 2025.

In addition to such annual contributions, the Depositor has agreed

to lend money, on an unsecured, interest-free basis, to the Royalty Trust to fund the Royalty Trust’s ordinary administrative expenses

as set forth in the Royalty Trust Agreement.

All funds the Trustee borrows to cover expenses or liabilities, whether from the Depositor

or from any other source, must be repaid before the Royalty Trust unitholders will receive any distributions.

HOGA loaned the Royalty

Trust $10,750 on May 16, 2025 and $42,469 on June 27, 2025.

As of June 30, 2025, the Royalty Trust has an outstanding note payable to

HOGA of $253,219.

addition to such annual contributions, the Depositor has agreed to lend money, on an unsecured, interest-free basis, to the Royalty Trust

to fund the Royalty Trust’s ordinary administrative expenses as set forth in the Royalty Trust Agreement.

All funds the Trustee

borrows to cover expenses or liabilities, whether from the Depositor or from any other source, must be repaid before the Royalty Trust

unitholders will receive any distributions.

During 2024, the Depositor loaned the Royalty Trust $200,000 on November 6, 2024.

the nine months ended September 30, 2025, HOGA loaned the Royalty Trust $10,750 on May 16, 2025, $42,469 on June 27, 2025, $58,007 on

July 31, 2025 and $50,438 on September 26, 2025.

As of September 30, 2025, the Royalty Trust has an outstanding note payable to HOGA

to the Royalty Trust Agreement, the Depositor agreed to provide and maintain a $1.0 million stand-by reserve account or an equivalent

9 unchanged sentences

in the stand-by reserve account to HOGA, and HOGA assumed the responsibility to maintain the stand-by reserve account from FCX.

Trust did not use any funds from the reserve account to pay administrative expenses during the three- and six-month periods ended June

As of June 30, 2025, the Depositor had not requested a reduction of the reserve account.

Trust did not use any funds from the reserve account to pay administrative expenses during the three- and nine-month periods ended September

As of September 30, 2025, the Depositor had not requested a reduction of the reserve account.

Administration.

9 unchanged sentences

DISTRIBUTIONS

were no distributions for the three- and six-month periods ended June 30, 2025 and 2024.

Natural gas sales volumes (measured in thousands

of cubic feet, or Mcf), average sales price and net cash proceeds available for distribution for the three- and six-month periods ended

June 30, 2025 and 2024 are set forth in the table below.

were no distributions for the three- and nine-month periods ended September 30, 2025 and 2024, as the Royalty Trust did not receive any

royalty income in any of these periods.

Three Months Ended

Six Months Ended

Natural gas sales volumes (Mcf)

Natural gas average sales price (per Mcf)

Gross proceeds

Post-production costs and specified taxes

Royalty income

Nine Months Ended

Interest and dividend income

Administrative expenses

Administrative expenses in excess of income

Administrative expenses

in excess of income

Income available for distribution

Adjustment to minimum cash reserve

Net cash proceeds available for distribution

Adjustment to minimum

Net cash proceeds available

for distribution

CONTINGENCIES AND OTHER COMMITMENTS

1 unchanged sentence

SUBSEQUENT EVENTS

July 29, 2025, the Trustee, on behalf of the Royalty Trust requested a loan from HOGA to pay July 2025 administrative expenses, and on

July 31, 2025 HOGA loaned the Royalty Trust $45,071 for the payment of such expenses.

November 5, 2025, the Trustee, on behalf of the Royalty Trust, requested a loan from HOGA to pay October 2025 administrative expenses,

and on November 12, 2025 HOGA loaned the Royalty Trust $54,826 for the payment of such expenses.

Trustee’s Discussion and Analysis of Financial Condition and Results of Operations .

79 unchanged sentences

Trust by the depositor under the Royalty Trust Agreement, if HOGA were to be unable to fully perform such obligations in the future.

June 30, 2025, HOGA owned interests in approximately 65 gas leases onshore in South Louisiana, covering approximately 7,865 gross acres

(5,365 acres net to HOGA’s interests) associated with the onshore Highlander subject interest.

As of June 30, 2025, the onshore

Highlander subject interest had no production due to the shutting in and subsequent abandonment of the sole well producing from the onshore

Highlander subject interest as discussed in “–

September 30, 2025, HOGA owned interests in approximately 122 gas leases onshore in South Louisiana, covering approximately 8,968 gross

acres (6,457 acres net to HOGA’s interests) associated with the onshore Highlander subject interest.

As of September 30, 2025,

the onshore Highlander subject interest had no production due to the shutting in and subsequent abandonment of the sole well producing

from the onshore Highlander subject interest as discussed in “–

Status of the Onshore Highlander Subject Interest”

40 unchanged sentences

before the Royalty Trust unitholders will receive any distributions.

The Trustee requested a loan from the Depositor in the amount of

$200,000 on October 16, 2024.

The Depositor funded the loan request with a check dated November 6, 2024.

The Depositor funded additional

loan requests from the Trustee of $10,750 on May 16, 2025 and $42,469 on June 27, 2025.

As of June 30, 2025, the Royalty Trust has an

outstanding note payable to HOGA of $253,219.

During 2024, the Depositor loaned the Royalty Trust $200,000 on

November 6, 2024.

During the nine months ended September 30, 2025, HOGA loaned the Royalty Trust $10,750 on May 16, 2025, $42,469 on

June 27, 2025, $58,007 on July 31, 2025 and $50,438 on September 26, 2025.

As of September 30, 2025, the Royalty Trust has an outstanding

note payable to HOGA of $361,664.

to the Royalty Trust Agreement, the Depositor agreed to provide and maintain a $1.0 million stand-by reserve account or an equivalent

7 unchanged sentences

the accompanying Statements of Assets, Liabilities and Trust Corpus.

As of June 30, 2025, the Depositor had not requested a reduction

As of September 30, 2025, the Depositor had not requested a reduction

of the reserve account.

1 unchanged sentence

month in which production payments are received by HOGA.

The Royalty Trust did not receive royalties during the three- and six-month

periods ended June 30, 2025 and 2024.

The Royalty Trust did not receive royalties during the three- and nine-month

periods ended September 30, 2025 and 2024.

received by the Royalty Trust must first be used to (i) satisfy Royalty Trust administrative expenses and (ii) reduce Royalty Trust indebtedness.

As of June 30, 2025, the Royalty Trust has an outstanding note payable to HOGA of $253,219.

As of September 30, 2025, the Royalty Trust has an outstanding note payable to HOGA of $361,664.

quarter, the Trustee will determine the amount of funds available for distribution to the Royalty Trust unitholders.

4 unchanged sentences

future liabilities.

As of June 30, 2025 the Trustee has established a minimum cash reserve of $302,500.

The minimum cash reserve is not

reflective of the Royalty Trust’s operating cash balance as of June 30, 2025 and December 31, 2024.

Distributions will be made

to Royalty Trust unitholders only when royalties received less administrative expenses incurred and repayment of any indebtedness exceeds

As of September 30, 2025 the Trustee has established a minimum cash reserve of $302,500.

The minimum cash reserve

is not reflective of the Royalty Trust’s operating cash balance as of September 30, 2025 and December 31, 2024.

Distributions will

be made to Royalty Trust unitholders only when royalties received less administrative expenses incurred and repayment of any indebtedness

exceeds the minimum cash reserve.

with the distribution to unitholders in the first quarter of 2022, the Royalty Trust withheld $8,750 from the funds otherwise available

for distribution each quarter through the first quarter of 2023, with the intent of gradually building a cash reserve of approximately

As no proceeds were available for distribution in the first quarter of 2025, the Royalty Trust did not withhold any funds for

As no proceeds were available for distribution in the third quarter of 2025, the Royalty Trust did not withhold any funds for

the cash reserve.

12 unchanged sentences

together with interest earned on the funds.

was no distributable income during the three- and six-month periods ended June 30, 2025 and 2024 due to the shutting in and subsequent

was no distributable income during the three- and nine-month periods ended September 30, 2025 and 2024 due to the shutting in and subsequent

abandonment of the sole well producing from the onshore Highlander subject interest as discussed in “Overview –

12 unchanged sentences

OF OPERATIONS

In accordance with the terms of the master conveyance, during the three- and six-month periods ended June 30, 2025 and 2024,

the Royalty Trust did not receive royalty income, due to the shutting in and subsequent abandonment of the sole well producing from the

onshore Highlander subject interest as discussed in “Overview –

In accordance with the terms of the master conveyance, during the three- and nine-month periods ended September 30, 2025

and 2024, the Royalty Trust did not receive royalty income, due to the shutting in and subsequent abandonment of the sole well producing

from the onshore Highlander subject interest as discussed in “Overview –

Status of the Onshore Highlander Subject Interest”

2 unchanged sentences

of the Royalty Trust.

During the three-month periods ended June 30, 2025 and 2024, the Royalty Trust paid administrative expenses of

$399,348 and $156,042, respectively.

During the six-month periods ended June 30, 2025 and 2024, the Royalty Trust paid administrative

During the three-month periods ended September 30, 2025 and 2024, the Royalty Trust paid administrative expenses

of $108,445 and $84,282, respectively.

During the nine-month periods ended September 30, 2025 and 2024, the Royalty Trust paid administrative

expenses of $507,793 and $662,047, respectively.

Administrative expenses were higher for the three-month period ended June 30, 2025,

as compared to the corresponding 2024 period, primarily due to the Royalty Trust’s payment of first quarter 2025 administrative

expenses in the second quarter of 2025.

Administrative expenses were lower for the six-month period ended June 30, 2025, as compared

Administrative expenses were higher for the three-month period ended September 30, 2025,

as compared to the corresponding 2024 period, primarily due to the Royalty Trust’s payment of third quarter 2024 administrative

expenses in the fourth quarter of 2024.

Administrative expenses were lower for the nine-month period ended September 30, 2025, as compared

to the corresponding 2024 period, primarily due to the Royalty Trust’s payment of fourth quarter 2023 administrative expenses in

63 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements