San Juan Basin Royalty Trust Declares No Cash Distribution for July 2019
July 19 2019 - 9:00AM
Business Wire
BBVA USA, 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 May 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 the
Fruitland Coal well drill and multiple well recompletions along
with lower natural gas prices. The new Fruitland Coal well and the
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 $112,075. Hilcorp San Juan L.P. (“Hilcorp”) will charge
the excess production costs of approximately $1,031,588 gross
($773,691 net) to the next month’s distribution. Excess production
costs for the June 2019 and July 2019 distribution months total
$1,203,088 gross ($902,316 net). 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 2,295,240 Mcf
(2,550,266 MMBtu) for May 2019, as compared to 2,271,800 Mcf
(2,524,222 MMBtu) for April 2019. Dividing revenues by production
volume yielded an average gas price for May 2019 of $1.13 per Mcf
($1.01 per MMBtu), as compared to an average gas price for April
2019 of $1.37 per Mcf ($1.23 per MMBtu).
For the reporting month of May 2019, Hilcorp has advised the
Trust that revenue included an estimate of $169,000 for
non-operated revenue. For the month ended May 2019, Hilcorp
reported to the Trust capital costs of $1,382,110, lease operating
expenses and property taxes of $2,426,789, and severance taxes of
$283,048.
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/20190719005028/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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