Exhibit 99.1
News Release
San Juan Basin Royalty Trust
Announces February Cash Distribution and Hilcorp’s 2024 Capital Plan
DALLAS, Texas, February 16, 2024 – Argent Trust Company, 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 $1,410,308.78 or $0.030258 per Unit, based primarily
upon the reported production of the Trust’s subject interests (the “Subject Interests”) during the month of December 2023. The distribution is payable March 14, 2024, to the Unit Holders of record as of February 29, 2024.
For the production month of December 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 $2,227,411 gross ($1,670,558 net royalty amount to the Trust).
Hilcorp reported $5,870,154 of total revenue from the Subject Interests for the production month of December 2023, consisting of $5,710,019 of gas revenues
and $160,135 of oil revenues. For the Subject Interests, Hilcorp reported $3,642,743 of production costs for the production month of December 2023, consisting of $2,411,535 of lease operating expense, $786,192 of severance taxes and $445,016 of
capital costs.
Based upon information provided to the Trust by Hilcorp, gas volumes for the subject interests for December 2023 totaled 1,909,007 Mcf
(2,121,119 MMBtu), as compared to 1,877,464 Mcf (2,086,071 MMBtu) for November 2023. Dividing gas revenues by production volume yielded an average gas price for December 2023 of $2.99 per Mcf ($2.69 per MMBtu), as compared to an average gas price
for November 2023 of $2.96 per Mcf ($2.67 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.
Hilcorp has also provided the Trust with its 2024 capital project plan for the Subject Interests (the “2024 Plan”), and Hilcorp has
estimated its 2024 capital expenditures for the Subject Interests to be $36.0 million.
Hilcorp informed the Trust that the 2024 Plan for the Subject
Interests includes 39 projects. Approximately $27.0 million of the $36.0 million budget in the 2024 Plan will be allocated to three new drill projects, including one well planned to be dually completed in the Dakota/Mesaverde formations
and two new wells planned to be completed in the Mancos formation. Approximately $8.0 million of the $36.0 million budget will be allocated to 36 projects for recompletions and workovers in the Mesaverde and Fruitland Coal formations, and
approximately $1.0 million of the $36.0 million budget will be allocated to facilities projects related to natural gas compression and other facility projects. Hilcorp further informed the Trust that its planned project status for 2024 is
subject to revision if Hilcorp revises its assumptions underlying the 2024 Plan, and that actual capital costs may vary from these estimates.