San Juan Basin Royalty Trust (SJT) will not declare a monthly cash distribution for August 2025 due to excess production costs and low natural gas pricing.
Hilcorp will charge the balance of excess production costs to SJT's net proceeds each month.
No cash distributions will be made until certain conditions are met to repay the excess production costs and resume royalty income distributions.
No Cash Distribution
SJT will not distribute cash to unit holders due to excess production costs and low gas prices.
Decrease in Deficit
The cumulative excess production costs decreased by $218,379 gross, indicating progress towards balancing the costs.
Revenue and Costs
Hilcorp reported $5,268,837 of total revenue from the Subject Interests in June 2025, with significant production costs of $5,050,458.
- Production costs exceeded gross proceeds, leading to the decision to halt cash distributions.
- Low natural gas prices and excess costs have impacted SJT's financial position.
- Repaying the excess production costs and replenishing reserves are crucial before resuming distributions to unit holders.
San Juan Basin Royalty Trust faces financial challenges due to excess production costs and low gas prices, impacting the cash distribution to unit holders. Repaying the balance of costs is essential for SJT to restore royalty income distributions and financial stability.