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 November 2024 [1][3] Financial Performance - Hilcorp reported total revenue of $4,880,618 from the Subject Interests for November 2024, with gas revenues of $4,752,207 and oil revenues of $128,411 [2] - Production costs for the Subject Interests were $13,139,376, which included lease operating expenses of $2,634,510, severance taxes of $597,211, and capital costs of $9,907,655 [2] Excess Production Costs - Hilcorp will charge excess production costs of approximately $29,506,766 gross ($22,130,075 net to the Trust) to the next month's distribution [3] - No cash distributions will be made until future net proceeds are sufficient to cover Trust liabilities and replenish cash reserves [3] Gas Production and Pricing - Gas volumes for November 2024 totaled 2,261,819 Mcf (2,513,132 MMBtu), an increase from 1,880,071 Mcf (2,088,968 MMBtu) in October 2024 [4] - The average gas price for November 2024 was $2.10 per Mcf ($1.89 per MMBtu), compared to $1.92 per Mcf ($1.72 per MMBtu) in October 2024 [4] Cash Reserves and Administrative Expenses - The Trustee plans to increase cash reserves to $2.0 million before any future distributions to Unit Holders [5] - Trust administrative expenses for the month totaled $113,093, with interest income of $3,497 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 [6] - The Trust's auditing process includes a detailed analysis of Hilcorp's pricing and rates charged [6]
San Juan Basin Royalty Trust Declares No Cash Distribution for January 2025 and Announces Production Costs in Excess of Proceeds