San Juan Basin Royalty Trust declaring no cash distribution in August

San Juan Basin Royalty Trust will not declare a monthly cash distribution to the holders of its Units of beneficial interest due to excess production costs for the Trust’s subject interests during the production month of June, as well as low natural gas pricing. Excess production costs for this reporting period are due primarily to significant lease operating expenses and capital expenditures associated with Hilcorp San Juan L.P.’s 2024 capital project plan. Hilcorp will charge the excess production costs of approximately $8,456,506 gross, $6,342,379 net to the Trust, to the next month’s distribution. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay then-current Trust liabilities and replenish cash reserves. Interest income received by the Trust in the amount of $6,302 will be applied to cover a portion of this month’s Trust administrative expenses, with cash reserves utilized to pay the remaining administrative expenses. Total cash reserves were $1.8M as of April 30. Prior to any future distributions to Unit Holders, the Trustee plans to replenish the cash reserves and continue to increase the cash reserves to $2.0M. These revenues and costs (along with all costs) are the subject of the Trust’s ongoing comprehensive audit process by the Trust’s professional consultants and outside counsel.