San Juan Basin Royalty Trust Declares Cash Distribution for August 2022

Rhea-AI Summary

PNC Bank, acting as trustee for the San Juan Basin Royalty Trust (NYSE: SJT), announced a monthly cash distribution of $8,550,291.87 or $0.183448 per unit, based on June 2022 production. This distribution is payable on September 15, 2022, to unit holders recorded by August 31, 2022. Hilcorp reported net profits of $11,538,141, with total revenues from the subject interests amounting to $15,525,202. Notably, gas production increased, resulting in an average gas price rise to $7.50 per Mcf.

Positive

• Monthly cash distribution of $8,550,291.87 underscores healthy production.
• Increase in gas production from 2,019,106 Mcf in May to 2,026,211 Mcf in June 2022.
• Average gas price rose to $7.50 per Mcf compared to $6.09 in May, indicating improved profitability.

Negative

• Dependence on Hilcorp for accurate reporting and financial performance could present risks.
• Potential volatility in oil and gas prices may impact future distributions.

HOUSTON--(BUSINESS WIRE)-- PNC Bank, National Association, as the trustee (the “Trustee”) of the San Juan Basin Royalty Trust (the “Trust”) (NYSE: SJT), today declared a monthly cash distribution to the holders (the “Unit Holders”) of its units of beneficial interest (the “Units”) of $8,550,291.87 or $0.183448 per Unit, based primarily upon the reported production of the Trust’s subject interests (the “Subject Interests”) during the month of June 2022. The distribution is payable September 15, 2022, to the Unit Holders of record as of August 31, 2022.

For the production month of June 2022, the owner of the Subject Interests, Hilcorp San Juan L.P. and the operator of the Subject Interests, Hilcorp Energy Company (collectively, “Hilcorp”), reported to the Trust net profits of $11,538,141 ($8,653,606 net royalty amount to the Trust).

Hilcorp reported $15,525,202 of total revenue from the Subject Interests for the production month of June 2022, consisting of $15,196,208 of gas revenues and $328,994 of oil revenues. For the Subject Interests, Hilcorp reported $3,987,061 of production costs for the production month of June 2022, consisting of $2,033,028 of lease operating expense, $1,865,490 of severance taxes and $88,543 of capital costs.

Based upon the information that Hilcorp provided to the Trust, gas volumes for the Subject Interests for June 2022 totaled 2,026,211 Mcf (2,251,345 MMBtu), as compared to 2,019,106 Mcf (2,243,451 MMBtu) for May 2022. Dividing gas revenues by production volume yielded an average gas price for June 2022 of $7.50 per Mcf ($6.75 per MMBtu), as compared to an average gas price for May 2022 of $6.09 per Mcf ($5.48 per MMBtu).

Production from the Subject Interests continues to be gathered, processed, and sold under market sensitive and customary agreements, as recommended for approval by the Trust’s Consultant. The Trustee continues to engage with Hilcorp regarding its ongoing accounting and reporting to the Trust, and the Trust’s third-party compliance auditors continue to audit payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. The Trust’s auditing process has also included detailed analysis of Hilcorp’s pricing and rates charged. As previously disclosed in the Trust’s filings, these revenues and costs (along with all costs) are the subject of the Trust’s ongoing comprehensive audit process by our professional consultants and outside counsel to ensure full compliance with all the underlying operative Trust agreements and evaluating all available potential remedies in the event there is evidence of non-compliance.

Except for historical information contained in this news release, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements generally are accompanied by words such as “estimates,” “anticipates,” “could,” “plan,” or other words that convey the uncertainty of future events or outcomes. Forward-looking statements and the business prospects of San Juan Basin Royalty Trust are subject to a number of risks and uncertainties that may cause actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, certain information provided to the Trust by Hilcorp, volatility of oil and gas prices, governmental regulation or action, litigation, and uncertainties about estimates of reserves. These and other risks are described in the Trust’s reports and other filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220819005044/en/

San Juan Basin Royalty Trust

PNC Bank, National Association

PNC Asset Management Group

2200 Post Oak Blvd., Floor 18

Houston, TX 77056

website: www.sjbrt.com

e-mail: sjt@pnc.com

Ross Durr, J.D., RPL, Senior Vice President & Mineral Interest Director

Kaye Wilke, Investor Relations, toll-free: (866) 809-4553

Source: San Juan Basin Royalty Trust

FAQ

What is the cash distribution amount for San Juan Basin Royalty Trust (SJT) in September 2022?

The cash distribution amount is $8,550,291.87, which equates to $0.183448 per unit.

When is the distribution payable for San Juan Basin Royalty Trust (SJT)?

The distribution is payable on September 15, 2022.

What were the total revenues reported by Hilcorp for June 2022?

Hilcorp reported total revenues of $15,525,202 for June 2022.

How did gas production change from May to June 2022 for San Juan Basin Royalty Trust (SJT)?

Gas production increased from 2,019,106 Mcf in May to 2,026,211 Mcf in June 2022.

What is the average gas price for San Juan Basin Royalty Trust (SJT) in June 2022?

The average gas price for June 2022 was $7.50 per Mcf.