San Juan Basin Royalty Trust Declares No Cash Distribution for April 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 $3,435,269 that would otherwise be payable as royalty income, which will be applied to the balance of excess production costs [1] - The cumulative balance of excess production costs is approximately $17,159,588 gross ($12,869,691 net to the Trust), reflecting a decrease of $4,580,359 gross ($3,435,269 net) from the previous month [1] - Hilcorp's total revenue from the Subject Interests for February 2025 was $7,869,451, comprising $7,685,519 from gas revenues and $183,932 from oil revenues [2] - Production costs for February 2025 were reported at $3,289,092, which includes lease operating expenses, severance taxes, and capital costs [2] Production and Pricing - Gas volumes for February 2025 totaled 2,287,310 Mcf (2,541,456 MMBtu), down from 2,689,216 Mcf (2,988,018 MMBtu) in January 2025 [4] - The average gas price for February 2025 was $3.36 per Mcf ($3.02 per MMBtu), a decrease of $0.38 per Mcf ($0.35 per MMBtu) compared to January 2025 [4] Administrative Expenses and Cash Reserves - Trust administrative expenses for the month totaled $142,466, with a portion covered by interest income of $1,742 [3] - Cash reserves were utilized to cover the remaining administrative expenses, bringing the balance of cash reserves to $117,797 [5] - The Trustee plans to replenish cash reserves to $2.0 million before making future distributions to Unit Holders [5] Compliance and Auditing - The Trust continues to engage with Hilcorp regarding accounting and reporting, with ongoing audits of payments made to the Trust [6] - The auditing process includes a detailed analysis of Hilcorp's pricing and rates charged, ensuring compliance with operative Trust agreements [6]