SJT San Juan Basin Royalty Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 21, 2023

San Juan Basin Royalty Trust

(Exact name of registrant as specified in its charter)

PNC BANK, NATIONAL ASSOCIATION

PNC Asset Management Group

2200 Post Oak Blvd., Floor 18

Houston, TX 77056

(Address of principal executive offices, including zip code)

(Registrant’s telephone number, including area code): (866) 809-4553

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

On July 21, 2023, the San Juan Basin Royalty Trust (the “Trust”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing a monthly cash distribution to the holders (the “Unit Holders”) of its units of beneficial interest (the “Units”) of $475,477.18 or $0.010201 per Unit, based primarily upon the reported production of the Trust’s subject interests (the “Subject Interests”) during the month of May 2023, by the owner of the Subject Interests, Hilcorp San Juan L.P. The distribution is payable August 14, 2023, to the Unit Holders of record as of July 31, 2023.

In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

(d) Exhibits.

The following exhibits are filed in accordance with the provisions of Item 601 of Regulation S-K:

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

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Exhibit 99.1

News Release

San Juan Basin Royalty Trust Declares Cash Distribution for July 2023

HOUSTON, Texas, July 21, 2023 – PNC Bank, National Association, as the trustee (the “Trustee”) of the San Juan Basin Royalty Trust (the “Trust”) (NYSE: SJT), today declared a monthly cash distribution to the holders (the “Unit Holders”) of its units of beneficial interest (the “Units”) of $475,477.18 or $0.010201 per Unit, based primarily upon the reported production of the Trust’s subject interests (the “Subject Interests”) during the month of May 2023. The distribution is payable August 14, 2023, to the Unit Holders of record as of July 31, 2023.

For the production month of May 2023, the owner of the Subject Interests, Hilcorp San Juan L.P. and the operator of the Subject Interests, Hilcorp Energy Company (collectively, “Hilcorp”), reported to the Trust net profits of $731,812 ($548,859 net royalty amount to the Trust).

Hilcorp reported $3,815,199 of total revenue from the Subject Interests for the production month of May 2023, consisting of $3,419,956 of gas revenues and $395,243 of oil revenues. For the Subject Interests, Hilcorp reported $3,083,386 of production costs for the production month of May 2023, consisting of $2,413,194 of lease operating expense, $556,852 of severance taxes and $113,340 of capital costs.

Based upon the information that Hilcorp provided to the Trust, gas volumes for the Subject Interests for May 2023 totaled 1,997,433 Mcf (2,219,370 MMBtu), as compared to 1,885,511 Mcf (2,095,012 MMBtu) for April 2023.

Dividing gas revenues by production volume yielded an average gas price for May 2023 of $1.71 per Mcf ($1.54 per MMBtu), as compared to an average gas price for April 2023 of $2.17 per Mcf ($1.96 per MMBtu).

Production from the Subject Interests continues to be gathered, processed, and sold under market sensitive and customary agreements, as recommended for approval by the Trust’s Consultant. The Trustee continues to engage with Hilcorp regarding its ongoing accounting and reporting to the Trust, and the Trust’s third-party compliance auditors continue to audit payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. The Trust’s auditing process has also included detailed analysis of Hilcorp’s pricing and rates charged. As previously disclosed in the Trust’s filings, these revenues and costs (along with all costs) are the subject of the Trust’s ongoing comprehensive audit process by our professional consultants and outside counsel to ensure full compliance with all the underlying operative Trust agreements and evaluating all available potential remedies in the event there is evidence of non-compliance.