San Juan Basin Royalty Trust declares no cash distribution in May

Argent Trust Company, as the trustee of the San Juan Basin Royalty, reported that it will not declare a monthly cash distribution to the holders of its Units of beneficial interest due to the application of net proceeds of $1,499,498, which amount would otherwise be payable to the Trust as royalty income, to the balance of excess production costs accrued as a result of Hilcorp San Juan L.P.’s drilling of two new horizonal wells in 2024. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. The balance of cumulative excess production costs is currently approximately $15,160,257 gross a decrease in the deficit of $1,999,331 gross from last month’s reporting period. Hilcorp will continue to charge the balance of excess production costs to the Trust’s net proceeds each month. Until the balance is paid in full, the Trust will not receive royalty income as all net proceeds will be applied to the balance of excess production costs. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves. Hilcorp reported $6,984,564 of total revenue from the Subject Interests for the production month of March, consisting of $6,904,591 of gas revenues and $79,973 of oil revenues. For the Subject Interests, Hilcorp reported $4,985,233 of production costs for the production month of March 2025, consisting of $3,193,460 of lease operating expenses, $786,589 of severance taxes, and $1,005,184 of capital costs.