San Juan Basin Royalty Trust Declares Cash Distribution for April 2022
April 19 2022 - 9:09AM
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 $ 3,863,096.64 or $0.082883 per Unit, based primarily upon the
reported production of the Trust’s subject interests (the “Subject
Interests”) during the month of February 2022. The distribution is
payable May 13, 2022, to the Unit Holders of record as of April 29,
2022.
For the production month of February 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 $5,337,442
($4,003,081 net royalty amount to the Trust).
Hilcorp reported $8,715,985 of total revenue from the Subject
Interests for the production month of February 2022. This amount
includes other revenues of $127,721, consisting of $97,895 of prior
period non-operated revenue actualizations and related interest and
$29,826 of revenue related to 2019 audit exceptions and interest.
Hilcorp advised the Trust that it has now completed the
actualizations on non-operated activity. For the Subject Interests,
Hilcorp reported $3,378,543 of production costs for the production
month of February 2022, consisting of $2,203,831 of lease operating
expenses, $1,092,574 of severance taxes and $82,139 of capital
costs.
Based upon the information that Hilcorp provided to the Trust,
gas volumes for the Subject Interests for February 2022 totaled
1,806,354 Mcf (2,007,060 MMBtu), as compared to 1,986,976 Mcf
(2,207,751 MMBtu) for January 2022. Production volumes were lower
in February due to seasonal operational factors related to weather
and temperature. Dividing revenues by production volume yielded an
average gas price for February 2022 of $4.70 per Mcf ($4.23 per
MMBtu), as compared to an average gas price for January 2022 of
$5.42 per Mcf ($4.88 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
disclosed in the February 2022 Distribution Report. 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.
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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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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