Thu, Nov 14, 2:59 PM (19 days ago)
For the quarter ending September 30, 2024, San Juan Basin Royalty Trust (SJT) reported no royalty income, a significant decline from $4.32 million in Q3 2023. The Trust faced substantial production costs, exceeding gross proceeds by $10.29 million for the quarter, leading to a cumulative excess of $11.52 million. Total income was $18.5 thousand, primarily from interest, down from $4.34 million year-over-year. General and administrative expenses remained stable, while cash reserves were $1.10 million, reflecting a strategic increase to cover operational liabilities amid revenue shortfalls. The average natural gas price dropped sharply to $1.49 per Mcf, down from $2.04, contributing to a 36.8% decrease in gross proceeds. Capital expenditures surged by approximately $10.45 million due to Hilcorp’s 2024 project plan, which allocated $34 million for drilling and recompletion efforts. The Trust anticipates continued volatility due to fluctuating natural gas prices and rising production costs, impacting future distributions to unit holders. The Trustee, Argent Trust Company, has emphasized the importance of ongoing audits and compliance checks with Hilcorp to ensure accurate reporting and royalty calculations.