Urgent Reiteration-Buy-Goldsnow- NYSE- XTO
Target-$21 (US)
Cross Timbers Will Have $25 Mln Gain on Hugoton Sale (Update1)
Cross Timbers Will Have $25 Mln Gain on Hugoton Sale (Update1) (Updates with closing share
prices.)
Houston, June 29 (Bloomberg) -- Cross Timbers Oil Co., which produces oil and natural gas in Texas,
said it will have a gain of $25 million, or about 55 cents a share, in the second quarter from the initial
public offering of Hugoton Royalty Trust, which consisted of the sale of a Cross Timbers stake in
Hugoton.
Cross Timbers raised net proceeds of $150.2 million in the sale of 17 million shares of Hugoton last
month. Royalty trusts allow investors to benefit from direct ownership of oil and natural gas assets by
receiving tax benefits.
Analysts expected the company to lose a penny a share in the second quarter before gains or charges,
the average estimate in a poll by First Call Corp. Individual estimates range from a loss of 12 cents to a
profit of 10 cents. Cross Timbers earned 2 cents a share in the same period last year.
Rick Seeds, executive vice president, said Cross Timbers expects to break even in the quarter. He
said the gain works out to about 55 cents a share. Cross Timbers, based in Fort Worth, Texas, had
1998 sales of $248 million.
Shares of Cross Timbers rose 13/16 to 13 3/8. Hugoton shares were unchanged at 10 3/8.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.
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