San Juan Basin Royalty Trust Declares Cash Distribution for March 2022
March 21 2022 - 9:00AM
Business Wire
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 $ 5,551,298.95 or $0.119104 per Unit, based primarily upon the
reported production of the Trust’s subject interests (the “Subject
Interests”) during the month of January 2022. The distribution is
payable April 14, 2022, to the Unit Holders of record as of March
31, 2022.
For the production month of January 2022, 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 $7,797,678
($5,848,258 net royalty amount to the Trust).
Hilcorp reported $10,704,254 of total revenue from the Subject
Interests for the production month of January 2022. This amount
includes other revenues of $(165,893), which includes $(356,803) of
prior period non-operated revenue actualizations and related
interest for the production months of November 2020 through October
2021, and $190,910 of revenue plus interest related to audit
exceptions. For the Subject Interests, Hilcorp reported $2,906,576
of production costs for the production month of January 2022,
consisting of $1,542,682 of lease operating expenses, $1,359,889 of
severance taxes and $4,005 of capital costs.
Based upon the information that Hilcorp provided to the Trust,
gas volumes for the Subject Interests for January 2022 totaled
1,986,976 Mcf (2,207,751 MMBtu), as compared to 2,108,852 Mcf
(2,343,169 MMBtu) for December 2021. Dividing revenues by
production volume yielded an average gas price for January 2022 of
$5.42 per Mcf ($4.88 per MMBtu), as compared to an average gas
price for December 2021 of $4.38 per Mcf ($3.94 per MMBtu).
Hilcorp continues to inform the Trust that the production
numbers reported to the Trust are based upon actual, instead of
estimated, production for the production month and that it intends
to continue to report to the Trust actual production numbers.
Hilcorp informed the Trust that it will account for and report any
non-operated revenue and non-operated severance tax actualizations
remaining from prior periods in future distribution reports, but
such amounts continue to be unknown.
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 all payments made
by Hilcorp to the Trust, including adjustments, actualizations, and
recoupments. The Trustee continues to consult with outside counsel
to review the rights of the Trust with respect to these matters and
to evaluate any available potential legal remedies for potential
violations of the Trust’s rights.
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/20220321005511/en/
San Juan Basin Royalty Trust PNC Bank, National Association PNC
Asset Management Group 2200 Post Oak Blvd., Floor 18 Houston, TX
77056 website: www.sjbrt.com e-mail: sjt@pnc.com James R. Wilharm,
Senior Vice President and Director of Trust Real Estate Services
Kaye Wilke, Investor Relations, toll-free: (866) 809-4553
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