San Juan Basin Royalty Trust Suspends Cash Distribution Due to Excess Production Costs

The San Juan Basin Royalty Trust has announced that it will not declare a monthly cash distribution to its unit holders due to the application of net proceeds to cover excess production costs. The Trust has accrued a substantial deficit of $14.8 million, which has been decreased by $392,317 from the previous month. Hilcorp, the operator of the trust's assets, will continue to charge excess production costs to the Trust's net proceeds each month.

Key Takeaways:

• The San Juan Basin Royalty Trust has suspended its monthly cash distribution due to excess production costs, which have accrued a deficit of $14.8 million.
• The Trust has decreased its deficit by $392,317 from the previous month, but still has a significant outstanding balance.
• Hilcorp will continue to charge excess production costs to the Trust's net proceeds each month until the deficit is paid in full.
• The Trust will not receive royalty income until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves.
• Hilcorp reported $4.6 million of total revenue from the trust's assets in April 2025, with gas revenues accounting for $4.4 million.
• The Trust engaged with Texas Bank to establish a line of credit of $2 million to cover administrative expenses until royalty income is sufficient to repay the balance of excess production costs.
• The Trust will self-publish press releases on its website until its cash reserves are replenished and increased to $2 million.

Statistics:

• Excess production costs accrued: $14.8 million
• Decrease in deficit from previous month: $392,317
• Total revenue from trust's assets in April 2025: $4.6 million
• Gas revenues: $4.4 million
• Oil revenues: $155,765
• Production costs (excluding excess): $4.2 million
• Lease operating expenses: $2.5 million
• Severance taxes: $568,685
• Capital costs: $1.1 million
• Average gas price in April 2025: $1.87 per Mcf ($1.69 per MMBtu)
• Average gas price in March 2025: $2.82 per Mcf ($2.54 per MMBtu)
• Cash reserves: $32,747 as of June 18, 2025
• Line of credit established with Texas Bank: $2 million
• Trust administrative expenses for June: $135,339

Sources:

• Press release from Argent Trust Company, Trustee of San Juan Basin Royalty Trust, dated [insert date, if available]
• San Juan Basin Royalty Trust's website: www.sjbrt.com
• Securities and Exchange Commission filings: www.sec.gov