San Juan Basin Royalty Trust (NYSE: SJT) reported that it will not declare a monthly cash distribution for November 2025.
Excess production costs and low natural gas pricing are the reasons for the decision.
The Trust's net proceeds will be applied to pay off the balance of excess production costs.
No Cash Distribution Declared
Due to excess production costs and low natural gas pricing, the Trust decided not to distribute cash to Unit Holders in November 2025.
Impact on Royalty Income
All net proceeds will go towards paying off excess production costs, with no cash distributions until the balance is cleared.
Financial Details
Hilcorp reported $4,725,794 of total revenue from the Subject Interests in September 2025, consisting of gas and oil revenues.
- The Trust will continue to face financial challenges until the excess production costs are fully repaid.
- Hilcorp will charge the balance of excess production costs each month, affecting the Trust's revenue streams.
- Low natural gas pricing adds to the financial strain on the Trust.
San Juan Basin Royalty Trust's decision to withhold cash distributions reflects the ongoing financial burden caused by excess production costs and low gas prices. Unit Holders may expect distributions to resume once the Trust's financial obligations are met.