San Juan Basin Royalty Trust Declares No Cash Distribution for August 2019
August 20 2019 - 9:00AM
Business Wire
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (the
“Trust”) (NYSE:SJT), today confirmed that, as previously reported,
it will not declare a monthly cash distribution to the holders of
its Units of beneficial interest (the “Unit Holders”) due to excess
production costs for the month of June 2019 reported by the
operator of the Trust’s subject interests, Hilcorp San Juan L.P.
(“Hilcorp”). Excess production costs occur when production costs
and capital expenditures exceed the gross proceeds for a certain
period. Excess production costs for this reporting period are due
primarily to planned capital spending associated with the Fruitland
Coal well drill and multiple well recompletions. The new Fruitland
Coal well and the well recompletions were included in Hilcorp's
revised 2019 capital expenditures plan announced by the Trust on
May 9, 2019.
The Trust will utilize its cash reserves to pay the Trust’s
administrative expenses of $130,438 for the month. Hilcorp will
charge excess production costs for the reporting month of June 2019
of $1,503,410 gross ($1,127,557 net) to next month’s distribution.
Through the June 2019 reporting month, accumulated excess
production costs for 2019 totaled $2,706,497 gross ($2,029,873
net). No cash distributions will be distributed by the Trust until
future net proceeds are sufficient to pay then-current Trust
liabilities and replenish cash reserves that, as of July 31, 2019,
have been reduced to $784,629.
Based upon information provided to the Trust by Hilcorp, gas
production for the subject interests totaled 2,298,795 Mcf
(2,554,217 MMBtu) for June 2019, as compared to 2,295,240 Mcf
(2,550,266 MMBtu) for May 2019. Dividing revenues by production
volume yielded an average gas price for June 2019 of $1.24 per Mcf
($1.11 per MMBtu), as compared to an average gas price for May 2019
of $1.13 per Mcf ($1.01 per MMBtu).
For the reporting month of June 2019, Hilcorp has advised the
Trust that revenue included an estimated $169,000 of non-operated
revenue and $186,226 plus interest for granted compliance audit
exceptions relating to the 2017 audit period. For the month ended
June 2019, Hilcorp reported to the Trust capital costs of
$2,568,390, lease operating expenses and property taxes of
$2,366,584, and severance taxes of $326,142.
Except for historical information contained in this news
release, the statements in this news release are forward-looking
statements that are made pursuant to the Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements generally are accompanied by words such
as “estimates,” “anticipates,” “could,” “plan,” or other words that
convey the uncertainty of future events or outcomes.
Forward-looking statements and the business prospects of San Juan
Basin Royalty Trust are subject to a number of risks and
uncertainties that may cause actual results in future periods to
differ materially from the forward-looking statements. These risks
and uncertainties include, among other things, certain information
provided to the Trust by Hilcorp, volatility of oil and gas prices,
governmental regulation or action, litigation, and uncertainties
about estimates of reserves. These and other risks are described in
the Trust’s reports and other filings with the Securities and
Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20190820005153/en/
San Juan Basin Royalty Trust BBVA USA, Trustee 300 West Seventh
St., Suite B, Fort Worth, Texas 76102 website: www.sjbrt.com
e-mail: sjt.us@bbva.com
Joshua R. Peterson, Senior Vice President & Trust Officer
Kaye Wilke, Investor Relations, toll-free: (866) 809-4553
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