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 excess production costs and low natural gas pricing during September 2024 [1] Financial Performance - Hilcorp reported total revenue of $2,853,533 from the Subject Interests for September 2024, with $2,651,297 from gas revenues and $202,236 from oil revenues [2] - Production costs for the Subject Interests amounted to $5,566,414, which included $2,592,399 in lease operating expenses, $362,225 in severance taxes, and $2,611,790 in capital costs [2] Excess Production Costs - Hilcorp will charge excess production costs of approximately $17,863,330 gross ($13,397,497 net to the Trust) to the next month's distribution, meaning no cash distributions will be made until future net proceeds are sufficient [3] Gas Production and Pricing - Gas volumes for September 2024 totaled 1,869,291 Mcf (2,076,989 MMBtu), a decrease from 1,922,538 Mcf (2,136,153 MMBtu) in August 2024 [4] - The average gas price for September 2024 was $1.42 per Mcf ($1.28 per MMBtu), down from $1.79 per Mcf ($1.61 per MMBtu) in August 2024 [4] Cash Reserves and Administrative Expenses - The Trustee plans to replenish cash reserves to $2.0 million before any future distributions to Unit Holders, with current cash reserves at $961,566 after utilizing $55,569 for administrative expenses [5] - Trust administrative expenses for the month totaled $59,870, with interest income of $4,301 applied to cover part of these expenses [3][5] Compliance and Auditing - The Trustee continues to engage with Hilcorp regarding accounting and reporting, with ongoing audits of payments made to the Trust, including revenues and costs [6]
San Juan Basin Royalty Trust Declares No Cash Distribution for November 2024 and Announces Production Costs in Excess of Proceeds