San Juan Basin Royalty Trust Reports No Monthly Cash Distribution

Strategic Insights -

The San Juan Basin Royalty Trust has reported that due to excess production costs and lower natural gas pricing, no monthly cash distribution will be declared to unit holders in May 2024. The excess production costs, totaling approximately $4,888,522 gross ($3,666,391 net to the trust), are primarily attributed to significant lease operating expenses and capital expenditures associated with Hilcorp's 2024 capital project plan.

Key Takeaways:

  • The San Juan Basin Royalty Trust will not declare a monthly cash distribution to unit holders in May 2024 due to excess production costs and lower natural gas pricing.
  • Excess production costs for the reporting period totaled approximately $4,888,522 gross ($3,666,391 net to the trust), primarily attributed to lease operating expenses and capital expenditures associated with Hilcorp's 2024 capital project plan.
  • The trust's subject interests reported a total revenue of $2,518,037 for the production month of May 2024, consisting of $2,242,475 of gas revenues and $275,562 of oil revenues.
  • The trust has increased cash reserves to $1,420,537, with plans to replenish the reserves and maintain a total of $2.0 million in cash reserves.
  • The trust's auditing process includes a detailed analysis of Hilcorp's pricing and rates charged, with the aim of evaluating potential remedies in the event of suspected non-compliance.

Statistics:

  • Excess production costs for the reporting period: approximately $4,888,522 gross, $3,666,391 net to the trust.
  • Total revenue from the subject interests for May 2024: $2,518,037.
  • Gas revenues for May 2024: $2,242,475.
  • Oil revenues for May 2024: $275,562.
  • Cash reserves maintained by the trust as of April 30, 2024: $1.8 million.
  • Cash reserves maintained by the trust as of June 2024: $1,420,537.
  • Total cash reserves planned by the trust: $2.0 million.

Sources:

  • Source: San Juan Basin Royalty Trust. "San Juan Basin Royalty Trust Reports No Monthly Cash Distribution." PRNewswire, July 19, 2024.