San Juan Basin Royalty Trust Declares No Cash Distribution for October 2019
October 21 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.
Excess production costs occur when production costs and capital
expenditures exceed the gross proceeds for a certain period.
For the production month of August 2019, the operator of the
Trust’s subject interests, Hilcorp San Juan L.P. (“Hilcorp”),
reported to the Trust excess production costs of $443,406 gross
($332,555 net to the Trust). Hilcorp will charge the excess
production costs to next month’s distribution. Including the excess
production costs for August 2019, the total reported excess
production that have accumulated against the subject interests’
royalty distributions since the June 2019 distribution are
$2,614,448 gross ($1,960,836 net to the Trust).
The Trust will utilize its cash reserves to pay the Trust’s
administrative expenses of $63,898 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 September 30, 2019, have been
reduced to $580,606.
Based upon information provided to the Trust by Hilcorp, gas
production for the subject interests totaled 911,518 Mcf (1,012,798
MMBtu) for August 2019, as compared to 2,331,807 Mcf (2,590,897
MMBtu) for July 2019. Dividing revenues by production volume
yielded an average gas price for August 2019 of $1.84 per Mcf
($1.66 per MMBtu), as compared to an average gas price for July
2019 of $1.42 per Mcf ($1.28 per MMBtu).
Hilcorp has advised the Trust that the August 2019 reporting
month included a $739,794 reduction due to a revenue and severance
tax true-up for August 2017. Hilcorp also reported that for the
reporting month of August 2019, revenue included an estimated
$169,000 for non-operated revenue. For the month ended August 2019,
Hilcorp reported to the Trust capital costs of $174,446, lease
operating expenses and property taxes of $2,266,723, and severance
taxes of $102,818.
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/20191021005076/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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