San Juan Basin Royalty Trust Informed By Hilcorp Likely No Further Cash Distributions for 2019
August 09 2019 - 9:00AM
Business Wire
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (the
“Trust”) (NYSE:SJT), today reported that the operator of the
Trust’s subject interests (the “Subject Interests”), Hilcorp San
Juan L.P. (“Hilcorp”), informed the Trust that it likely will not
distribute to the Trust any royalty income for the remainder of
2019, primarily due to Hilcorp’s substantial capital expenditures
for 2019. As a result of the lack of royalty income payments from
Hilcorp, the Trust will not have any distributable income to pay to
its unit holders. The Trust previously reported on May 9, 2019 that
Hilcorp had revised its 2019 capital expenditures plan for the
Subject Interests from approximately $2.7 million to $12.6 million
in order to fund increased well recompletions and additional well
drillings in the Subject Interests.
The Trust believes that it has sufficient capacity to draw upon
its cash reserves to pay the Trust’s administrative expenses for
the remainder of 2019. The Trust will not make any cash
distributions to the Trust’s unit holders until future net proceeds
from royalty income distributions are sufficient to pay the
then-current Trust liabilities and replenish previously utilized
cash reserves. In the event that the Trust has insufficient cash
reserves to fund its administrative expenses, the Trust believes
that it has the ability to borrow funds against the Trust’s royalty
interests to cover the Trust’s administrative expenses until its
cash reserves can be replenished from royalty income payments from
Hilcorp.
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 “believes,” “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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190809005071/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
San Juan Basin Royalty (NYSE:SJT)
Historical Stock Chart
From Aug 2024 to Sep 2024
San Juan Basin Royalty (NYSE:SJT)
Historical Stock Chart
From Sep 2023 to Sep 2024