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San Juan Basin Royalty Trust : July 21, 2025 San Juan Basin Royalty Trust Declares July Cash Distribution
San Juan Basin Royalty Trust : July 21, 2025 San Juan Basin Royalty Trust Declares July Cash
About this update from San Juan Basin Royalty Trust
[{"type":"text","content":"\n News Release\n \n \n San Juan Basin Royalty Trust Declares No Cash Distribution for July 2025\n \n \n DALLAS, Texas, July 21, 2025 Argent Trust Company, as the trustee (the \"Trustee\") of the San Juan Basin Royalty Trust (the \"Trust\") (NYSE: SJT), today reported that it will not declare a monthly cash distribution to the holders of its Units of beneficial interest (the \"Unit Holders\") due to excess production costs for the Trust's subject interests (\"Subject Interests\") during the production month of May 2025, as well as continued low natural gas pricing. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. The balance of cumulative excess production costs is currently approximately $15,931,801 gross ($11,948,851 net to the Trust), an increase in the deficit of $1,163,861 gross ($872,896 net to the trust) from last month's reporting period. Hilcorp will continue to charge the balance of excess production costs to the Trust's net proceeds each month. Until the balance is paid in full, the Trust will not receive royalty income as all net proceeds will be applied to the balance of excess production costs. No cash distributions will be made by the Trust until future net proceeds are sufficient to repay the balance of excess production costs, replenish a reserve in the amount of $2,000,000, and repay the Line of Credit (as defined below) in full.\n \n \n Hilcorp reported $3,935,783 of total revenue from the Subject Interests for the production month of May 2025, consisting of $3,771,676 of gas revenues and $164,107 of oil revenues. For the Subject Interests, Hilcorp reported $5,099,644 of production costs (excluding the balance of excess production costs) for the production month of May 2025, consisting of $2,662,528 of lease operating expenses, $442,393 of severance taxes, and $1,994,723 of capital costs.\n \n \n Based upon information provided to the Trust by Hilcorp, gas volumes for the Subject Interests for May 2025 totaled 2,323,516 Mcf (2,581,684 MMBtu), as compared to 2,349,703 Mcf (2,610,782 MMBtu) for April 2025. Dividing gas revenues by production volume yielded an average gas price for May 2025 of\n \n \n $1.62 per Mcf ($1.46 per MMBtu), a decrease of $0.25 per Mcf ($0.23 per MMBtu) as compared to the average gas price for April 2025 of $1.87...