San Juan Basin Royalty Trust Declares Cash Distribution for February 2021

Rhea-AI Summary

San Juan Basin Royalty Trust (NYSE:SJT) declared a monthly cash distribution of $2,547,730.20, equating to $0.054662 per Unit, based on December 2020 production. This distribution will be paid on March 12, 2021, to holders of record as of February 26, 2021. Gas production totaled 1,643,882 Mcf in December 2020, up from 1,428,504 Mcf in November 2020, yet the average gas price dropped from $3.14 per Mcf in November to $2.66 per Mcf in December. Adjustments included a negative impact of $3,573 net to the Trust. Capital costs and expenses were also reported for December 2020.

Positive

• Monthly cash distribution of $2,547,730.20 or $0.054662 per Unit.
• Increase in gas production from November to December 2020, totaling 1,643,882 Mcf.

Negative

• Average gas price decreased from $3.14 per Mcf in November to $2.66 per Mcf in December.
• Negative adjustment of $3,573 net to the Trust based on past production true-ups.

BBVA USA, as Trustee of the San Juan Basin Royalty Trust (the “Trust”) (NYSE:SJT), today declared a monthly cash distribution to the holders of its Units of beneficial interest (the “Unit Holders”) of $2,547,730.20 or $0.054662 per Unit, based primarily upon production during the month of December 2020, subject to certain adjustments by the owner of the Trust’s subject interests, Hilcorp San Juan L.P. (Hilcorp”), for prior months. The distribution is payable March 12, 2021, to Unit Holders of record as of February 26, 2021.

Based upon information provided to the Trust by Hilcorp, gas production for the subject interests totaled 1,643,882 Mcf (1,826,535 MMBtu) for December 2020, as compared to 1,428,504 Mcf (1,587,227 MMBtu) for November 2020. Dividing revenues by production volume yielded an average gas price for December 2020 of $2.66 per Mcf ($2.39 per MMBtu), as compared to an average gas price for November 2020 of $3.14 per Mcf ($2.83 per MMBtu).

Hilcorp has advised the Trust that the December 2020 reporting month included a negative adjustment of $4,764 gross ($3,573 net to the Trust) based on true-ups for the October 2018, November 2018 and December 2018 production months.

Hilcorp also reported that for the reporting month of December 2020, revenue included an estimated $100,000 for non-operated revenue. For the month ended December 2020, Hilcorp reported to the Trust capital costs of $120,985, lease operating expenses and property taxes of $845,909, and severance taxes of $72,172.

Contact:		San Juan Basin Royalty Trust
		BBVA USA, Trustee
		2200 Post Oak Blvd., Floor 18
		Houston, TX 77056
		website: www.sjbrt.com	e-mail: sjt.us@bbva.com
		Joshua R. Peterson, Head of Trust Real Assets & Mineral Resources
		and Senior Vice President
		Kaye Wilke, Investor Relations, toll-free: (866) 809-4553

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/20210216005205/en/

FAQ

What is the cash distribution declared by San Juan Basin Royalty Trust for March 2021?

The declared cash distribution is $2,547,730.20 or $0.054662 per Unit.

What were the gas production figures for December 2020 reported by San Juan Basin Royalty Trust?

Gas production totaled 1,643,882 Mcf in December 2020.

When will the cash distribution for San Juan Basin Royalty Trust be paid?

The distribution is payable on March 12, 2021.

What was the average gas price for December 2020?

The average gas price for December 2020 was $2.66 per Mcf.

Was there any negative adjustment reported by San Juan Basin Royalty Trust?

Yes, there was a negative adjustment of $3,573 net to the Trust based on prior months' production.