NEW YORK (TheStreet) -- Hugoton Royalty Trust (HGT) shares are up 21% to $9.74 on Wednesday following the announcement of an arbitration ruling in the company's favor.
The express trust won a $6.1 million ruling from the American Arbitration Association against XTO Energy, which had previously claimed that some of the $37 million dollar settlement it received from its Fankhouser v. XTO Energy, Inc. litigation should come from the trust.
XTO Energy had previously deducted $4.4 million from the company's proceeds in September and October of 2012. The arbitration settlement covers that amount, plus interest and lawyers fees.
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TheStreet Ratings team rates HUGOTON ROYALTY TRUST as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HUGOTON ROYALTY TRUST (HGT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."