Tue, May 14, 6:29 PM (306 days ago)
The San Juan Basin Royalty Trust's Form 10-Q for the quarter ended March 31, 2024, highlights a significant decrease in financial performance compared to the same period in 2023. Royalty income plummeted to $5.1 million from $36.4 million, primarily due to a sharp decline in natural gas prices, which fell from $10.53/Mcf to $3.19/Mcf. Consequently, distributable income dropped by 88.62%, from $36.0 million ($0.771771 per unit) to $4.1 million ($0.087806 per unit). Capital expenditures surged to $990,794 from $33,660, reflecting an increased budget for 2024. General and administrative expenses more than doubled to $1.0 million. The Trust's cash reserves were bolstered to $1.4 million to mitigate potential revenue shortfalls. The Trust continues to audit Hilcorp's payments and accounting practices rigorously. Hilcorp's 2024 capital project plan estimates $34.0 million in expenditures, focusing on drilling projects and well recompletions. Future distributions may be impacted by these capital costs and fluctuating natural gas prices.