San Juan Basin Royalty Trust Declares No Cash Distribution for September 2019
September 20 2019 - 9:00AM
Business Wire
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (the
“Trust”) (NYSE:SJT), today confirmed that 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 from
prior periods. Excess production costs occur when production costs
and capital expenditures exceed the gross proceeds for a certain
period.
For the production month of July 2019, the operator of the
Trust’s subject interests, Hilcorp San Juan L.P. (“Hilcorp”),
reported to the Trust profits of $535,455 gross ($401,591 net),
which reduced, but did not eliminate, the previously reported
excess production costs of $2,706,497 gross ($2,029,873 net) that
have accumulated against the subject interests’ royalty
distributions since the June 2019 distribution month. Hilcorp will
charge the excess production costs to next month’s
distribution.
The Trust will utilize its cash reserves to pay the Trust’s
administrative expenses of $91,938 for the month. 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 August 31, 2019, have been
reduced to $672,544.
Based upon information provided to the Trust by Hilcorp, gas
production for the subject interests totaled 2,331,807 Mcf
(2,590,897 MMBtu) for July 2019, as compared to 2,298,795 Mcf
(2,554,217 MMBtu) for June 2019. Dividing revenues by production
volume yielded an average gas price for July 2019 of $1.42 per Mcf
($1.28 per MMBtu), as compared to an average gas price for June
2019 of $1.24 per Mcf ($1.11 per MMBtu).
For the reporting month of July 2019, Hilcorp has advised the
Trust that revenue included an estimated $169,000 for non-operated
revenue. For the month ended July 2019, Hilcorp reported to the
Trust capital costs of $739,871, lease operating expenses and
property taxes of $2,177,535, and severance taxes of $340,086.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190920005060/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
San Juan Basin Royalty (NYSE:SJT)
Historical Stock Chart
From Mar 2024 to Apr 2024
San Juan Basin Royalty (NYSE:SJT)
Historical Stock Chart
From Apr 2023 to Apr 2024