What is Hugoton Royalty Trust Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Hugoton Royalty Trust's Probability of Financial Distress (%) is 0.07%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Hugoton Royalty Trust's Probability of Financial Distress (%)
For the Oil & Gas E&P subindustry, Hugoton Royalty Trust's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hugoton Royalty Trust's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hugoton Royalty Trust's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Hugoton Royalty Trust's Probability of Financial Distress (%) falls into.
Hugoton Royalty Trust Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -7.25 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Hugoton Royalty Trust (Hugoton Royalty Trust) Business Description
Traded in Other Exchanges
N/A
Address
c/o Corporate Trustee, Simmons Bank 2911 Turtle Creek Boulevard, Suite 850, Dallas, TX, USA, 75219
Hugoton Royalty Trust holds net profits interests in oil and gas properties. The underlying properties of the trust include gas-producing properties in the Hugoton area of Oklahoma and Kansas, the Anadarko Basin of Oklahoma, and the Green River Basin of Wyoming. The net profit interests entitle the trust to receive majority of the net proceeds from the sale of oil and gas from the underlying properties.
Executives
| Gary D. Simpson |
officer: Sr VP Investor Rel & Finance, other: Advisory Dir - XTO Energy Inc. |
810 HOUSTON STREET, FORT WORTH TX 76102 |
| Keith A Hutton |
director, officer: President of XTO Energy Inc. |
C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102 |
| Jack P Randall |
director, other: Director of XTO Energy Inc. |
|
| Adams William H Iii |
director, other: Director of XTO Energy Inc. |
C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102 |
| Bennie G Kniffen |
other: Sr. VP and Controller XTO |
|
| Louis G Baldwin |
other: EVP-CFO of XTO Energy Inc. |
|
| Lane G Collins |
other: Director of XTO Energy Inc. |
|
| Herbert D Simons |
other: Director of XTO Energy Inc. |
|
| Timothy L Petrus |
other: Exec VP - XTO Energy Inc. |
810 HOUSTON STREET, FORT WORTH TX 76102 |
| Phillip R Kevil |
other: Director-XTO Energy Inc. |
C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102 |
| Scott G Sherman |
other: Director of XTO Energy Inc. |
|
| Vennerberg Vaughn O Ii |
officer: Exec. VP-Admin. XTO Energy |
|
| Bob R Simpson |
officer: Dir., CEO & Chair XTO Energy |
C/O MORNINGSTAR PARTNERS, L.P., 400 WEST 7TH STREET, FORT WORTH TX 76102 |
Hugoton Royalty Trust (Hugoton Royalty Trust) Headlines
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