San Juan Basin Royalty Trust Declares No Cash Distribution for March 2025

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 $4,153,693 that would have been payable as royalty income, which will instead be applied to the balance of excess production costs [1] - The cumulative excess production costs currently stand at approximately $21,739,947 gross ($16,304,960 net to the Trust), reflecting a decrease of $5,538,257 gross ($4,153,693 net) from the previous month [1] - Hilcorp's total revenue from the Subject Interests for January 2025 was $10,152,016, comprising $10,063,934 from gas revenues and $88,082 from oil revenues [2] - Production costs for January 2025 were reported at $4,613,759, which includes lease operating expenses, severance taxes, and capital costs [2] Production and Pricing - Gas volumes for January 2025 totaled 2,689,216 Mcf (2,988,018 MMBtu), showing a slight increase from December 2024's volume of 2,669,858 Mcf (2,966,509 MMBtu) [4] - The average gas price for January 2025 was $3.74 per Mcf ($3.37 per MMBtu), an increase of $0.60 per Mcf ($0.54 per MMBtu) compared to December 2024 [4] Administrative Expenses - Trust administrative expenses for the month totaled $255,657, with an increase attributed to timing differences in expense payments [3] - Interest income of $2,038 will partially cover these administrative expenses, with cash reserves used for the remainder [3] Cash Reserves and Future Plans - The Trustee plans to replenish cash reserves to $2.0 million before making future distributions to Unit Holders [5] - As of April 30, 2024, total cash reserves were $1.8 million, and cash reserves will be utilized to cover administrative expenses until excess production costs are repaid [5] - Hilcorp's 2025 capital project plan estimates capital expenditures of approximately $9.0 million, with allocations for new vertical drill projects, recompletions, and facilities projects [7][8]