San Juan Basin Royalty Trust Declares November Cash Distribution
November 17 2017 - 9:00AM
Business Wire
Compass Bank, as Trustee of the San Juan Basin Royalty Trust
(the “Trust”) (NYSE:SJT), today declared a monthly cash
distribution to the holders of its units of beneficial interest of
$3,359,614.22 or $0.072081 per unit, based principally upon
estimated production during the month
of September 2017. The distribution is payable December 14, 2017,
to unit holders of record as of November 30, 2017.
The sale of San Juan Basin assets, including the oil and gas
interests from which the Trust’s royalty interest was carved
(“Subject Interests”), from Burlington Resources Oil & Gas
Company LP (“Burlington”) to Hilcorp San Juan L.P. (“Hilcorp”)
closed on July 31, 2017. Due to the transition from Burlington,
Hilcorp informed the Trust that Hilcorp does not yet have all of
the revenue decks for September 2017 installed, and therefore does
not have the appropriate detail to provide actual revenue numbers
for the November 2017 distribution.
Therefore, Hilcorp estimated the November 2017 distribution
based on the revenue distribution detail for the July 2017
production month previously provided by Burlington and rounded to
the nearest thousand. The November 2017 declaration of cash
distribution includes an additional $1.0 million in estimated gross
revenue based on Hilcorp’s knowledge that production volumes in
September 2017 were in line with production volumes during the
month of August 2017. Hilcorp informed the Trust that the expense
decks for September 2017 have been installed. However, severance
taxes continue to be estimated.
Hilcorp has also informed the Trust that Hilcorp may need to use
estimated revenue and severance tax numbers to calculate
distributions for subsequent months. Once Hilcorp has all of the
revenue decks installed, Hilcorp will reconcile the actual revenue
numbers versus the estimated numbers and true-up any distributions,
as needed. Hilcorp has not yet trued-up the actual versus estimated
expense numbers for August 2017.
Estimated gas production for the Subject Interests totaled
2,155,000 Mcf (2,394,444 MMBtu) for September 2017. Dividing
revenues by production volume yielded an average estimated gas
price for September 2017 of $2.60 per Mcf ($2.34 per MMBtu) which
was identical to August 2017.
The average monthly gas price Hilcorp reports to the Trust is a
calculated price. It is determined by dividing gross monthly
revenue by production volume, and therefore, it does not represent
an average of actual sales prices. The average gas price may vary
from the posted index price for the San Juan Basin. The index price
is a gross sales price, and the revenues used in the calculation of
average gas prices are net of transportation, processing and
gathering costs. Furthermore, the distribution to the Trust in any
given month may include significant volume adjustments for sales in
prior months that reflect pricing for those prior months.
For the month ended September 2017, capital costs were $73.48,
lease operating expenses were $1,454,825.88 and property taxes were
$13.98. Estimated severance taxes for the September 2017 production
month were $594,800.
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version on businesswire.com: http://www.businesswire.com/news/home/20171117005100/en/
San Juan Basin Royalty TrustCompass Bank, TrusteeJoshua R.
Peterson, Vice President & Senior Trust OfficerKaye Wilke,
Investor Relations, toll-free:
866-809-4553www.sjbrt.comsjt.us@bbva.com
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