San Juan Basin Royalty Trust Declares Cash Distribution for July 2022

Rhea-AI Summary

PNC Bank, as trustee of the San Juan Basin Royalty Trust (SJT), announced a monthly cash distribution of $6,766,905.11 or $0.145185 per Unit for the production month of May 2022. This distribution is payable on August 12, 2022, to Unit Holders of record as of July 29, 2022. Hilcorp reported net profits of $9,121,113 and total revenue of $12,895,888, with production costs at $3,774,775. Gas volumes for May 2022 were 2,019,106 Mcf, achieving an average price of $6.09 per Mcf, up from $4.82 in April. The Trust is engaged in ongoing audits concerning Hilcorp's financial reporting.

Positive

• Monthly cash distribution of $6,766,905.11 reflects consistent revenue generation.
• Total revenue of $12,895,888 reported by Hilcorp indicates strong production performance.
• Average gas price increased to $6.09 per Mcf, enhancing revenue potential.

Negative

• Production volumes decreased from April's 2,098,999 Mcf to 2,019,106 Mcf in May 2022.

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 $6,766,905.11 or $0.145185 per Unit, based primarily upon the reported production of the Trust’s subject interests (the “Subject Interests”) during the month of May 2022. The distribution is payable August 12, 2022, to the Unit Holders of record as of July 29, 2022.

For the production month of May 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 $9,121,113 ($6,840,835 net royalty amount to the Trust).

Hilcorp reported $12,895,888 of total revenue from the Subject Interests for the production month of May 2022. For the Subject Interests, Hilcorp reported $3,774,775 of production costs for the production month of May 2022, consisting of $2,153,920 of lease operating expense, $1,580,833 of severance taxes and $40,022 of capital costs.

Based upon the information that Hilcorp provided to the Trust, gas volumes for the Subject Interests for May 2022 totaled 2,019,106 Mcf (2,243,451 MMBtu), as compared to 2,098,999 Mcf (2,332,221 MMBtu) for April 2022. Dividing revenues by production volume yielded an average gas price for May 2022 of $6.09 per Mcf ($5.48 per MMBtu), as compared to an average gas price for April 2022 of $4.82 per Mcf ($4.34 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/20220719005785/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, 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) for August 2022?

The cash distribution amount is $6,766,905.11 or $0.145185 per Unit.

When is the cash distribution for SJT payable?

The distribution is payable on August 12, 2022.

What were the reported net profits for Hilcorp in May 2022 for SJT?

Hilcorp reported net profits of $9,121,113 for May 2022.

What was the total revenue reported by Hilcorp for May 2022 for SJT?

The total revenue reported by Hilcorp for May 2022 was $12,895,888.

How did the average gas price change from April 2022 to May 2022 for SJT?

The average gas price increased from $4.82 per Mcf in April 2022 to $6.09 per Mcf in May 2022.