Financial Performance - Total income for the three months ended September 30, 2025, was $385, a significant decrease from $18,463 in the same period of 2024, indicating a decline of 97.9%[11] - Distributable income for the nine months ended September 30, 2025, showed a loss of $274,135 compared to a distributable income of $5,158,229 in 2024, reflecting a decrease of 105.3%[11] - Royalty Income for the three months ended September 30, 2025, was $0, compared to $6,945,974 for the nine months ended September 30, 2024, reflecting a significant decrease due to higher capital project spending[79] - Distributable Income for the three months ended September 30, 2025, was a loss of $111,352, with no Royalty Income distributed during this period[91] - Interest income decreased for the three and nine months ended September 30, 2025, primarily due to the decrease in Royalty Income and cash reserves[92] Cash and Investments - As of September 30, 2025, cash and short-term investments decreased to $29,160 from $760,920 as of December 31, 2024, representing a decline of approximately 96.2%[8] - Total cash reserves were $29,160 as of September 30, 2025, with plans to increase reserves to $2,000,000[94] - The Trust did not receive any Royalty Income from May 2024 through September 2025, relying on cash reserves and a Line of Credit to cover administrative expenses[96] Expenses and Costs - General and administrative expenses for the nine months ended September 30, 2025, totaled $1,017,505, a decrease from $2,161,377 in 2024, representing a reduction of about 53.0%[11] - General and administrative expenses decreased by $270,968 (70.1%) for the three months ended September 30, 2025, and by $1,143,872 (52.9%) for the nine months ended September 30, 2025[93] - Severance taxes increased approximately $0.5 million, or 48%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to higher Gross Proceeds[85] Production and Revenue - Natural gas production increased from 5,691,025 Mcf for the three months ended September 30, 2024, to 6,918,497 Mcf for the same period in 2025, and from 16,743,796 Mcf to 21,624,972 Mcf for the nine months ended September 30, 2024, to 2025[81] - Natural gas production volumes increased by 1,227,472 Mcf (21.6%) for the three months ended September 30, 2025, compared to the same period in 2024[105] - Oil production volumes decreased by 3,336 Bbls (30.0%) for the three months ended September 30, 2025, compared to the same period in 2024[106] Capital Expenditures - Hilcorp's 2025 capital expenditures for the Subject Interests are estimated to be approximately $9.0 million, with $4.0 million allocated to new vertical drill projects[47] - Hilcorp's capital expenditures for the Subject Interests are estimated at approximately $9.0 million for 2025, with $7.70 million already spent as of September 30, 2025[69] - Hilcorp's capital expenditures for the three months ended September 30, 2025, were $3,941,821, reflecting a decrease of $6,947,777 compared to the same period in 2024[74] - Capital expenditures decreased by $6,947,777 for the three months ended September 30, 2025, but increased by $7,788,545 for the nine months ended September 30, 2025, primarily due to drilling two new horizontal wells in 2024[83] Trust Structure and Governance - The Trust's financial statements raise substantial doubt about its ability to continue as a going concern within one year after the issuance date[29] - The Trust's distribution of income to Unit Holders is funded by Royalty Income after payment of Trust expenses, with no obligation to return overpayments[95] - The Trust does not have any directors or officers, resulting in no adoption of insider trading policies[127] Debt and Credit - The Trust established a Line of Credit of $2,000,000 with Texas Bank on May 21, 2025, bearing an interest rate of 8.5% as of June 30, 2025, maturing on May 21, 2027[29] - The outstanding balance on the Line of Credit was $274,135 as of September 30, 2025[98] - The Trust entered into a line of credit of $2,000,000 on May 21, 2025, to cover operating expenses, with an outstanding balance of $274,135 as of September 30, 2025[88][90] Market Conditions - The Trust's income is heavily influenced by natural gas and oil prices, which can fluctuate widely due to supply and demand changes[76] - The average realized natural gas price per Mcf increased to $2.11 for the three months ended September 30, 2025, compared to $1.49 in 2024[107] - The average realized oil price per Bbl decreased to $54.66 for the three months ended September 30, 2025, compared to $70.63 in 2024[108] Regulatory and Compliance - The Trust's financial statements are prepared on a modified cash basis, which differs from GAAP, affecting revenue recognition and expense recording[23] - Hilcorp's ongoing accounting and reporting to the Trust is subject to third-party compliance audits to ensure accuracy[72] - The Trust's production and sale of natural gas from coal seam wells does not qualify for tax credit under Section 45K of the Code, with no current legislation reinstating such credits[36]

Group 1 - The cumulative excess production costs for San Juan Basin Royalty Trust have decreased from $12,869,691 to $8,722,969 [1] - The trust is listed on the NYSE under the ticker SJT [1] Group 2 - The analyst holds a beneficial short position in the shares of SJT through various financial instruments [2] - There are GTC buy back orders placed at prices lower than the current market price [2]

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides essential identification details for the Form 8-K filing, including registrant, filing date, trustee, and securities information [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section provides the core identification details for the Form 8-K filing, including the registrant's name, the filing date, the trustee's contact information, and the commission file number - Registrant: **SAN JUAN BASIN ROYALTY TRUST**[2](index=2&type=chunk) - Filing Date: **October 21, 2025**[2](index=2&type=chunk) - Trustee: Argent Trust Company, located at 3838 Oak Lawn Ave., Suite 1720, Dallas, Texas 75219. Telephone: (855) 588-7839[2](index=2&type=chunk) [Securities and Compliance](index=1&type=section&id=Securities%20and%20Compliance) This section outlines the registrant's securities listed on the New York Stock Exchange and confirms its status regarding emerging growth company provisions Registered Securities | Title of each class | Symbol(s) | Name of each exchange on which registered | |---|---|---| | Units | SJT | New York Stock Exchange | - The registrant is not an emerging company[4](index=4&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This section details the decision not to declare a monthly cash distribution due to excess production costs and low natural gas prices [Monthly Distribution Announcement](index=2&type=section&id=Monthly%20Distribution%20Announcement) The San Juan Basin Royalty Trust announced that it would not declare a monthly cash distribution to its unitholders for October 2025, a decision primarily driven by excess production costs for the Trust's subject interests during prior periods and continued low natural gas pricing, with the information provided in this Form 8-K being furnished, not filed, with the SEC - No monthly cash distribution declared for **October 2025** to holders of its units of beneficial interest[6](index=6&type=chunk) - Reasons for no distribution: excess production costs for the Trust's subject interests during prior periods and continued low natural gas pricing[6](index=6&type=chunk) - The information in this Form 8-K is deemed 'furnished' and not 'filed' with the Securities and Exchange Commission, in accordance with general instruction B.2 to Form 8-K[7](index=7&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section provides a list of all exhibits accompanying the Form 8-K filing [Exhibits List](index=2&type=section&id=Exhibits%20List) This section lists the exhibits accompanying the Form 8-K filing, specifically identifying the press release related to the distribution announcement Exhibits | Exhibit No. | Description | |---|---| | 99.1 | Press Release dated October 21, 2025 | [Signatures](index=3&type=section&id=Signatures) This section confirms the official signing of the report by the authorized trustee representative [Authorized Signatory](index=3&type=section&id=Authorized%20Signatory) This section confirms the official signing of the report by an authorized representative of Argent Trust Company, acting as Trustee for the San Juan Basin Royalty Trust - The report was duly signed on behalf of the registrant by Argent Trust Company, as Trustee for the San Juan Basin Royalty Trust[10](index=10&type=chunk) - Signed by Nancy Willis, Director of Royalty Trust Services, on **October 21, 2025**[11](index=11&type=chunk)

[Form 8-K: Current Report (July 21, 2025)](index=1&type=section&id=Form%208-K%3A%20Current%20Report%20%28July%2021%2C%202025%29) This Form 8-K details significant events for the San Juan Basin Royalty Trust, including distribution announcements and financial conditions [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides details on the San Juan Basin Royalty Trust, the filer, and its trustee, Argent Trust Company - The report was filed by San Juan Basin Royalty Trust, with Argent Trust Company acting as the Trustee[2](index=2&type=chunk) Registered Securities Information | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Units | SJT | New York Stock Exchange | [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) The Trust announced the suspension of its July monthly cash distribution due to excess production costs and low natural gas prices - The Trust will **not declare** a monthly cash distribution to unitholders for July[6](index=6&type=chunk) - Reasons for the suspension of the distribution include: * Excess production costs for the Trust's subject interests during the production month of May 2025 * Continued low natural gas pricing[6](index=6&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section details the exhibits accompanying the report, including a press release regarding the distribution announcement Exhibits Filed | Exhibit No. | Description | | :--- | :--- | | 99.1 | Press Release dated July 21, 2025 | [Signatures](index=3&type=section&id=Signatures) This section confirms the report's authorization and signing by Argent Trust Company, the trustee, on July 21, 2025 - The report was duly **signed and authorized** by Argent Trust Company, the trustee, on July 21, 2025[10](index=10&type=chunk)[11](index=11&type=chunk)

Financial Performance - Royalty income for the six months ended June 30, 2025, was $0, compared to $6,945,974 for the same period in 2024, indicating a significant decrease of 100%[11]. - Total income for the three months ended June 30, 2025, was $2,985, down from $1,892,127 in 2024, reflecting a decline of approximately 99.84%[11]. - Distributable income (loss) for the three months ended June 30, 2025, was $(162,783), compared to a profit of $1,065,685 in 2024, marking a change of 115.3%[11]. - Royalty Income for the three months ended June 30, 2025, was $0, a decrease from $1,854,915 in the same period of 2024, primarily due to increased capital project spending[78]. - Distributable Income for the three months ended June 30, 2025, was a loss of $162,783, a decrease from a profit of $1,065,685 in the same period of 2024[86]. Assets and Liabilities - As of June 30, 2025, total assets decreased to $2,710,585 from $3,438,537 as of December 31, 2024, representing a decline of approximately 21.2%[8]. - Cash reserves as of June 30, 2025, were $32,968, significantly lower than $760,920 as of December 31, 2024, a decrease of approximately 95.7%[8]. - The trust corpus at the end of the period was $2,514,834, down from $2,677,617 at the beginning of the period, a decrease of approximately 6.1%[13]. - The Trust established a Line of Credit of $2,000,000 with Texas Bank on May 21, 2025, bearing interest at 8.5% as of June 30, 2025[29]. - As of June 30, 2025, the outstanding balance on the Line of Credit was $162,783, with $132,851 used for administrative costs in June 2025[30]. Expenses - General and administrative expenses for the six months ended June 30, 2025, totaled $901,966, compared to $1,374,870 in 2024, a reduction of about 34.4%[11]. - General and administrative expenses decreased by $367,369 (48.4%) for the three months ended June 30, 2025, compared to the same period in 2024[88]. - Trustee fees for the three-month period ending June 30, 2025, were $40,041[51]. Production and Capital Expenditures - Hilcorp's 2025 capital expenditures for the Subject Interests are estimated to be approximately $9.0 million, with $4.0 million allocated to new vertical drill projects[47]. - Hilcorp's capital expenditures for the Subject Interests were $2,509,627 and $16,556,987 for the three and six months ended June 30, 2025, reflecting increases of $1,679,755 and $14,736,321 compared to the same periods in 2024[73]. - Natural gas production increased from 5,457,753 Mcf for the three months ended June 30, 2024, to 7,085,582 Mcf for the same period in 2025, reflecting a significant rise in output[78]. - Natural gas production volumes for the Subject Interests increased by 1,627,829 Mcf (29.8%) for the three months ended June 30, 2025, compared to the same period in 2024[102]. - Oil production volumes decreased by 1,168 Bbls (13.2%) for the three months ended June 30, 2025, compared to the same period in 2024[103]. Revenue Recognition and Compliance - The Trust's financial statements are prepared on a modified cash basis, which differs from GAAP, affecting revenue recognition and expense recording[23]. - The Trust's production and sale of natural gas does not qualify for tax credit under Section 45K of the Code[35]. - The Trust's third-party compliance auditors continue to audit all payments made by Hilcorp, including adjustments and recoupments[71]. - Hilcorp's transition to a new accounting system in 2021 led to various adjustments in revenue and severance taxes, impacting the Trust's financial reporting[64]. Going Concern and Future Outlook - The Trust's financial statements raise substantial doubt about its ability to continue as a going concern[29]. - The anticipated deficit in income raises substantial doubt about the Trust's ability to continue as a going concern within one year after the issuance date of the financial statements[97]. - The Trust's ability to distribute cash is contingent upon the payment of Excess Production Costs, replenishing a cash reserve of $2,000,000, and repaying the Note in full[74]. - The Trust's financial statements do not include adjustments for potential future effects on asset recoverability and liability classifications if it cannot continue as a going concern[98]. Royalty Income and Production Costs - Cumulative Excess Production Costs as of June 30, 2025, were approximately $14,767,940 gross ($11,075,955 net to the Trust)[48]. - As of June 30, 2025, Excess Production Costs amounted to $14,767,940 ($11,075,955 net to the Trust), which must be paid in full before any Royalty Income is distributed to the Trust[74]. - Hilcorp's production costs are deducted from Gross Proceeds to calculate Net Proceeds, which are then multiplied by 75% to determine Royalty Income[70]. - Excess Production Costs contributed to a decrease in natural gas production volumes and negative volumes for the Royalty[102]. Miscellaneous - The Trust has no directors or executive officers, with Nancy Willis acting as the authorized signatory for the report[130]. - The Trust's certifications required by Rule 13a-14(a) and (b) were completed by Nancy Willis, Director of Royalty Trust Services, on August 13, 2025[126]. - The San Juan Basin Royalty Trust has filed various exhibits related to its royalty trust indenture and financial agreements, including a promissory note and mortgage with Texas Bank dated May 21, 2025[126].

Distribution Information - The San Juan Basin Royalty Trust will not declare a monthly cash distribution for April due to the application of net proceeds of $3,435,269 to excess production costs[6] Production Costs - The excess production costs are a result of Hilcorp San Juan L.P.'s drilling of two new horizontal wells in 2024[6]

Core Points - Argent Trust Company, as the trustee of the San Juan Basin Royalty Trust, will not declare a monthly cash distribution due to the application of net proceeds to excess production costs from Hilcorp's drilling activities in 2024 [1] - The cumulative excess production costs currently stand at approximately $14,767,940 gross, with a net amount of $11,075,955 to the Trust, reflecting a decrease of $392,317 gross from the previous month [1] - Hilcorp reported total revenue of $4,558,987 for April 2025, with gas revenues of $4,403,222 and oil revenues of $155,765 [2] - Production costs for the same month were reported at $4,201,917, which included lease operating expenses, severance taxes, and capital costs [2] - Gas volumes for April 2025 totaled 2,349,703 Mcf, showing a decrease from March 2025's volume of 2,448,569 Mcf, with an average gas price of $1.87 per Mcf, down from $2.82 per Mcf in March [3] - Trust administrative expenses for the month totaled $135,339, with interest income of $394 applied to cover part of these expenses [4] - The Trust has established a line of credit of $2,000,000 with Texas Bank to cover administrative expenses until sufficient royalty income is received [6] - As of June 18, 2025, cash reserves were utilized to pay interest on the line of credit, reducing the balance of cash reserves to $32,747 [7] - The Trust will self-publish press releases on its website starting July 21, 2025, due to the depletion of cash reserves [10]

Core Points - Argent Trust Company, as the trustee of the San Juan Basin Royalty Trust, will not declare a monthly cash distribution to Unit Holders due to the application of net proceeds of $1,499,498 to excess production costs from Hilcorp's drilling activities in 2024 [1] - The cumulative balance of excess production costs is approximately $15,160,257 gross ($11,370,193 net to the Trust), reflecting a decrease of $1,999,331 gross ($1,499,498 net) from the previous month [1] - Hilcorp reported total revenue of $6,984,564 for March 2025, with gas revenues of $6,904,591 and oil revenues of $79,973, while production costs for the same month were $4,985,233 [2] - The average gas price for March 2025 was $2.82 per Mcf ($2.54 per MMBtu), a decrease of $0.54 per Mcf ($0.48 per MMBtu) compared to February 2025 [4] - Trust administrative expenses for the month totaled $85,694, with interest income of $856 applied to cover part of these expenses [3] - Cash reserves were utilized to cover administrative expenses, bringing the balance of cash reserves maintained by the Trustee to $32,959, with plans to increase reserves to $2.0 million before future distributions [5] Financial Overview - Hilcorp's production costs for March 2025 included $3,193,460 in lease operating expenses, $786,589 in severance taxes, and $1,005,184 in capital costs [2] - The Trust's ongoing audit process includes detailed analysis of Hilcorp's pricing and rates charged, ensuring compliance with operative Trust agreements [6]

Financial Performance - Total income for the three months ended March 31, 2025, was $8,238, a significant drop from $5,108,715 in the same period of 2024, indicating a decrease of over 99%[10] - Distributable income for the three months ended March 31, 2025, was $0, compared to $4,092,544 in the same period of 2024, reflecting a complete loss of distributable income year-over-year[10] - Royalty income for the three months ended March 31, 2025, was $0, compared to $5,091,060 in the same period of 2024, marking a decline of 100%[10] - Distributions declared per unit for the three months ended March 31, 2025, were $0, compared to $0.087806 in the same period of 2024[12] - Production Costs exceeded Gross Proceeds by $491,938 for the three months ended March 31, 2025, leading to no Royalty Income distribution[70] - Total Gross Proceeds increased by approximately $5.5 million, or 30.1%, for the three months ended March 31, 2025, compared to the same period in 2024, driven by increased production volumes from two new horizontal wells drilled in 2024[71] Cash and Reserves - As of March 31, 2025, cash and short-term investments decreased to $258,521 from $760,920 on December 31, 2024, representing a decline of approximately 66%[8] - The cash reserve balance was $258,521 as of March 31, 2025, down from $760,920 at the end of 2024, indicating a reduction of approximately 66%[24] - Total cash reserves were $258,521 as of March 31, 2025, down from $1,800,000 as of April 30, 2024, due to the lack of Royalty Income[81] - The Trust expects to continue drawing on cash reserves for all liabilities not covered by interest income until Royalty Income resumes[83] Trust Viability and Concerns - The trust's ability to continue as a going concern is in doubt due to anticipated deficits in income to cover liabilities, prompting evaluations of commercial lending options[25] - The anticipated deficit in income raises substantial doubt about the Trust's ability to continue as a going concern within one year after the issuance date of the financial statements[84] - The Trustee is negotiating a commercial line of credit to cover the Trust's liabilities once cash reserves are depleted[84] Production and Expenditures - Hilcorp's estimated capital expenditures for 2025 are approximately $9.0 million, with $4.0 million allocated to seven new vertical drill projects[39] - Hilcorp's capital expenditures rose significantly from $990,794 for the three months ended March 31, 2024, to $14,047,360 for the same period in 2025, an increase of approximately $13,056,566[72] - The cumulative balance of Excess Production Costs as of March 31, 2025, was $21,739,946 gross ($16,304,960 net to the Trust), which must be recovered from future Net Proceeds before Royalty Income can be paid[77] - Natural gas production from the Subject Interests increased from 5,595,016 Mcf for the three months ended March 31, 2024, to 7,620,893 Mcf for the same period in 2025[70] - Oil production volumes increased by 2,528 Bbls (41.5%) for the Subject Interests and by 41 Bbls (11.4%) for Royalty for the three months ended March 31, 2025[91] Tax and Compliance - The Trust's tax years 2021 and thereafter remain subject to examination, with material tax positions likely to be sustained[32] - Hilcorp's production and sale of natural gas from coal seam wells does not qualify for tax credit under Section 45K of the Code[30] - The Trust's auditing process includes detailed analyses of Hilcorp's pricing and rates charged, ensuring compliance with operative Trust agreements[34] - The trust operates under the regulations set forth by the Securities Exchange Act, ensuring transparency and accountability[118] - The trust's compliance with regulatory requirements highlights its commitment to investor protection[118] Governance and Structure - The San Juan Basin Royalty Trust has no directors or executive officers, indicating a streamlined governance structure[118] - Nancy Willis serves as the Director of Royalty Trust Services, responsible for overseeing trust operations[118] - The document does not provide insights into market expansion or new product developments[118] - The absence of executive officers may affect decision-making processes and strategic initiatives[118] - There are no specific financial performance metrics or forecasts provided in the document[118] - The trust's structure as a royalty trust suggests a focus on income generation from oil and gas royalties[118] - The trust's operational framework may influence investment strategies in the energy sector[118]

Core Viewpoint - Argent Trust Company, as the trustee of the San Juan Basin Royalty Trust, will not declare a monthly cash distribution to Unit Holders due to the application of net proceeds to cover excess production costs incurred from Hilcorp's drilling activities in 2024 [1] Financial Summary - The Trust reported net proceeds of $3,435,269 that would otherwise be payable as royalty income, which will be applied to the balance of excess production costs [1] - The cumulative balance of excess production costs is approximately $17,159,588 gross ($12,869,691 net to the Trust), reflecting a decrease of $4,580,359 gross ($3,435,269 net) from the previous month [1] - Hilcorp's total revenue from the Subject Interests for February 2025 was $7,869,451, comprising $7,685,519 from gas revenues and $183,932 from oil revenues [2] - Production costs for February 2025 were reported at $3,289,092, which includes lease operating expenses, severance taxes, and capital costs [2] Production and Pricing - Gas volumes for February 2025 totaled 2,287,310 Mcf (2,541,456 MMBtu), down from 2,689,216 Mcf (2,988,018 MMBtu) in January 2025 [4] - The average gas price for February 2025 was $3.36 per Mcf ($3.02 per MMBtu), a decrease of $0.38 per Mcf ($0.35 per MMBtu) compared to January 2025 [4] Administrative Expenses and Cash Reserves - Trust administrative expenses for the month totaled $142,466, with a portion covered by interest income of $1,742 [3] - Cash reserves were utilized to cover the remaining administrative expenses, bringing the balance of cash reserves to $117,797 [5] - The Trustee plans to replenish cash reserves to $2.0 million before making future distributions to Unit Holders [5] Compliance and Auditing - The Trust continues to engage with Hilcorp regarding accounting and reporting, with ongoing audits of payments made to the Trust [6] - The auditing process includes a detailed analysis of Hilcorp's pricing and rates charged, ensuring compliance with operative Trust agreements [6]