Thu, May 15, 3:40 PM (39 days ago)
**San Juan Basin Royalty Trust (SJT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** No royalty income for Q1 2025 due to excess production costs from Hilcorp's drilling activities in 2024. - **Profit Margins:** Negative due to excess production costs outweighing gross proceeds. - **Cash Flow:** Negative cash flow from operations, relying on cash reserves to cover liabilities. - **Earnings Changes:** No distributable income for Q1 2025, down from $4.09 million in Q1 2024. **Key Metrics & Trends:** - **Gross Proceeds:** Increased by 30.1% YoY due to higher production volumes from new wells. - **Production Costs:** Increased significantly due to capital expenditures for new horizontal wells. - **Excess Production Costs:** Increased to $21.74 million, reducing royalty income. - **Cash Reserves:** Depleted to $258,521, raising concerns about the trust's going concern status. **Uncertainties & Future Operations:** - **Liquidity:** Substantial doubt about the trust's ability to continue as a going concern within a year. - **Future Income:** Dependent on Hilcorp's capital expenditures, commodity prices, and production volumes. - **Trustee Actions:** Evaluating commercial lending options to cover liabilities once cash reserves are depleted. **Impact on Future Operations:** - **Distributions:** No distributions expected until excess production costs are recovered and cash reserves are replenished. - **Trust Corpus:** Remained stable at $2.68 billion, with no impairment recognized. - **Trustee Fees:** Decreased by 25% YoY due to timing differences and transition expenses. **Ticker:** SJT **Exchange:** New York Stock Exchange