San Juan Basin Royalty Trust Declares No Cash Distribution for June 2019
June 18 2019 - 9:00AM
Business Wire
BBVA USA (formerly known as Compass Bank), as Trustee of the San
Juan Basin Royalty Trust (the “Trust”) (NYSE:SJT), today reported
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 for the month of April 2019. Excess
production costs occur when production costs and capital
expenditures exceed the gross proceeds for a certain period. Excess
production costs for this reporting period are due primarily to
capital spending associated with multiple well recompletions along
with lower natural gas prices. These well recompletions were
included in the revised 2019 capital expenditures plan announced by
the Trust on May 9, 2019.
Cash reserves will be utilized to pay Trust administrative
expenses of $84,943. Hilcorp San Juan L.P. (“Hilcorp”) will charge
the excess production costs of approximately $171,500 gross
($128,625 net) to the next month’s distribution. 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.
Based upon information provided to the Trust by Hilcorp, gas
production for the subject interests totaled 2,271,800 Mcf
(2,524,222 MMBtu) for April 2019, as compared to 2,293,581 Mcf
(2,548,423 MMBtu) for March 2019. Dividing revenues by production
volume yielded an average gas price for April 2019 of $1.37 per Mcf
($1.23 per MMBtu), as compared to an average gas price for March
2019 of $2.00 per Mcf ($1.80 per MMBtu).
For the reporting month of April 2019, Hilcorp has advised the
Trust that revenue included an estimate of $169,000 for
non-operated revenue. For the month ended April 2019, Hilcorp
reported to the Trust capital costs of $1,155,677, lease operating
expenses and property taxes of $2,334,691 and severance taxes of
$338,221.
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/20190618005211/en/
San Juan Basin Royalty TrustBBVA USA, Trustee300 West Seventh
St., Suite B, Fort Worth, Texas 76102website: www.sjbrt.com e-mail:
sjt.us@bbva.com
Joshua R. Peterson, Senior Vice President & Trust
OfficerKaye Wilke, Investor Relations, toll-free: (866)
809-4553
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