San Juan Basin Royalty Trust Reports No Monthly Cash Distribution

The San Juan Basin Royalty Trust has reported that due to the application of net proceeds to the balance of excess production costs accrued as a result of Hilcorp San Juan L.P.'s drilling of two new horizonal wells in 2024, no monthly cash distribution will be declared to the holders of its Units of beneficial interest. The balance of cumulative excess production costs is approximately $14,767,940 gross, with net proceeds being applied to this balance each month. Hilcorp will continue to charge the balance of excess production costs to the Trust's net proceeds, and no cash distributions will be made until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves.

Key Takeaways:

• The San Juan Basin Royalty Trust will not declare a monthly cash distribution due to the application of net proceeds to the balance of excess production costs.
• The balance of cumulative excess production costs is approximately $14,767,940 gross, with a decrease in the deficit of $392,317 gross from last month's reporting period.
• Hilcorp will continue to charge the balance of excess production costs to the Trust's net proceeds each month, until the balance is paid in full.
• The Trust will not receive royalty income as all net proceeds will be applied to the balance of excess production costs.
• The Trust's administrative expenses totaled $135,339 in this month, with an increase due to differences in the timing of certain expenses.
• The Trust has established a line of credit with Texas Bank in the amount of $2,000,000 to cover administrative expenses until the Trust receives royalty income.
• The Trust will self-publish press releases on its website until such time as the cash reserves have been replenished and increased to $2.0 million.

Statistics:

• Total revenue from the Subject Interests for the production month of April 2025 was $4,558,987.
• Gas volumes for the Subject Interests in April 2025 totaled 2,349,703 Mcf (2,610,782 MMBtu).
• The average gas price for April 2025 was $1.87 per Mcf ($1.69 per MMBtu), a decrease of $0.95 per Mcf ($0.85 per MMBtu) from March 2025.
• The balance of cumulative excess production costs is approximately $14,767,940 gross.
• The Trust has reduced the deficit of excess production costs by $392,317 gross from last month's reporting period.
• The Trust's administrative expenses totaled $135,339 in this month, with an increase due to differences in the timing of certain expenses.

Sources:

• San Juan Basin Royalty Trust, "San Juan Basin Royalty Trust Reports No Monthly Cash Distribution," June 20, 2025
• San Juan Basin Royalty Trust, "Trustee's Report for April 2025," April 2025
• Hilcorp San Juan L.P., "Hilcorp San Juan L.P. Reports $4,558,987 of Total Revenue from the Subject Interests for the Production Month of April 2025," April 2025
• Securities and Exchange Commission, "San Juan Basin Royalty Trust, Annual Report (10-K)," December 2024
• Securities and Exchange Commission, "San Juan Basin Royalty Trust, Quarterly Report (10-Q)," March 2025