San Juan Basin Royalty Trust declares no cash distribution for January

San Juan Basin Royalty Trust (SJT) will not declare a monthly cash distribution to the holders of its Units of beneficial interest due to excess production costs for the Trust’s subject interests during the production month of November 2024, as well as continued low natural gas pricing. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. Excess production costs for this reporting period are due primarily to significant lease operating expenses and capital expenditures associated with Hilcorp San Juan’s 2024 capital project plan. Hilcorp reported $4.88M of total revenue from the Subject Interests for the production month of November 2024, consisting of $4.75M of gas revenues and $128.4K of oil revenues. For the Subject Interests, Hilcorp reported $13,139,376 of production costs for the production month of November 2024, consisting of $2,634,510 of lease operating expenses, $597,211 of severance taxes, and $9,907,655 of capital costs. Hilcorp will charge the excess production costs of approximately $29,506,766 gross to the next month’s distribution. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves. Prior to any future distributions to Unit Holders, the Trustee plans to replenish the cash reserves and continue to increase the cash reserves to $2.0M.