San Juan Basin Royalty Trust Declares No Cash Distribution for December 2024 and Announces Production Costs in Excess of Proceeds

Core Insights - Hilcorp reported total revenue of $3,674,540 for October 2024, with gas revenues at $3,602,210 and oil revenues at $72,330 [1] - The Trust will not declare a monthly cash distribution due to excess production costs and low natural gas pricing for October 2024 [5] - Excess production costs for the reporting period amounted to approximately $21,248,008 gross, with $15,936,006 net to the Trust [6] Financial Performance - Gas volumes for October 2024 were 1,880,071 Mcf, an increase from 1,869,291 Mcf in September 2024 [2] - Average gas price for October 2024 was $1.92 per Mcf, up from $1.42 per Mcf in September 2024 [2] - Total production costs for October 2024 were reported at $7,059,218, including lease operating expenses of $2,468,962, severance taxes of $327,389, and capital costs of $4,262,867 [1] Operational Insights - The Trust's auditing process includes a detailed analysis of Hilcorp's pricing and rates charged, ensuring compliance with operative Trust agreements [3] - The Trustee has increased cash reserves to cover Trust expenses during revenue shortfalls, with total cash reserves at $760,919 after utilizing $200,647 for administrative expenses [7] - The Trust's administrative expenses for the month totaled $204,336, with interest income of $3,689 applied to cover part of these expenses [6]