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San Juan Basin Royalty Trust Declares No Cash Distribution for January 2025 and Announces Production Costs in Excess of Proceeds
SJTSan Juan Basin Royalty Trust(SJT) Prnewswire·2025-01-21 14:15

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 4,880,618fromtheSubjectInterestsforNovember2024,withgasrevenuesof4,880,618 from the Subject Interests for November 2024, with gas revenues of 4,752,207 and oil revenues of 128,411[2]−ProductioncostsfortheSubjectInterestswere128,411 [2] - Production costs for the Subject Interests were 13,139,376, which included lease operating expenses of 2,634,510,severancetaxesof2,634,510, severance taxes of 597,211, and capital costs of 9,907,655[2]ExcessProductionCosts−Hilcorpwillchargeexcessproductioncostsofapproximately9,907,655 [2] Excess Production Costs - Hilcorp will charge excess production costs of approximately 29,506,766 gross (22,130,075nettotheTrust)tothenextmonth′sdistribution[3]−NocashdistributionswillbemadeuntilfuturenetproceedsaresufficienttocoverTrustliabilitiesandreplenishcashreserves[3]GasProductionandPricing−GasvolumesforNovember2024totaled2,261,819Mcf(2,513,132MMBtu),anincreasefrom1,880,071Mcf(2,088,968MMBtu)inOctober2024[4]−TheaveragegaspriceforNovember2024was22,130,075 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 (1.89perMMBtu),comparedto1.89 per MMBtu), compared to 1.92 per Mcf (1.72perMMBtu)inOctober2024[4]CashReservesandAdministrativeExpenses−TheTrusteeplanstoincreasecashreservesto1.72 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,withinterestincomeof113,093, 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]