San Juan Basin Royalty Trust Declares Cash Distribution for September 2021
September 20 2021 - 9:00AM
Business Wire
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (the
“Trust”) (NYSE:SJT), today declared a monthly cash distribution to
the holders of its Units of beneficial interest (the “Unit
Holders”) of $1,724,289.03 or $0.036995 per Unit, based primarily
upon production during the month of July 2021, subject to certain
adjustments by the owner of the Trust’s subject interests, Hilcorp
San Juan L.P. (Hilcorp”), for prior months. The distribution is
payable October 15, 2021, to Unit Holders of record as of September
30, 2021.
Hilcorp reported gross revenue of $7,512,674 and gross
production costs of $4,837,606 for the production month of July
2021. The gross production costs consist of lease operating
expenses of $2,737,834, severance taxes of $977,215, capital costs
of $30,807 and gross excess production costs of $1,091,749 from the
prior month. Hilcorp has agreed to waive interest on any
overpayments to the Trust in 2021.
For the production month of July 2021, Hilcorp reported to the
Trust profits of $2,675,068 gross ($2,006,301 net to the
Trust).
Based upon information provided to the Trust by Hilcorp, gas
production for the subject interests totaled 2,147,718 Mcf
(2,386,353 MMBtu) for July 2021, as compared to 1,568,223 Mcf
(1,742,470 MMBtu) for June 2021. Dividing revenues by production
volume yielded an average gas price for July 2021 of $3.28 per Mcf
($2.96 per MMBtu), as compared to an average gas price for June
2021 of $3.46 per Mcf ($3.12 per MMBtu).
After payment of the Trust’s administrative expenses for the
month, the Trustee will replenish the Trust’s cash reserves by the
net amount of $150,148 which will bring the cash reserve balance
back to the previously established amount of $1.0 million. As of
August 31, 2021, the Trust’s cash reserves were $849,852.
Hilcorp informed the Trust that it completed its accounting
system implementation and that it is now reporting to the Trust
based on actual revenue and expenses for operated wells beginning
with the production month of June 2021. Hilcorp has advised the
Trust that by the end of 2021 it will complete the process of
actualizing, accounting for and reporting to the Trust the operated
revenue and severance tax computations for the four production
months (January through April 2021). At this time the amount of
these actualizations is unknown.
The Trustee continues to engage with Hilcorp regarding its
ongoing accounting and reporting to the Trust. The Trust’s
third-party compliance auditors continue to audit all payments made
by Hilcorp to the Trust, including adjustments, true-ups, 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.
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/20210920005232/en/
Joshua R. Peterson, Head of Trust Real Assets & Mineral
Resources and Senior Vice President Kaye Wilke, Investor Relations,
toll-free: (866) 809-4553
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