San Juan Basin Royalty Trust Declares No Cash Distribution for November 2019
November 18 2019 - 8:00AM
Business Wire
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (the
“Trust”) (NYSE:SJT), today confirmed that it will not declare a
monthly cash distribution to the holders of its Units of beneficial
interest (the “Unit Holders”) due to the Trustee replenishing the
Trust’s cash reserves.
For the production month of September 2019, the operator of the
Trust’s subject interests, Hilcorp San Juan L.P. (“Hilcorp”),
reported to the Trust profits of $267,285 gross ($200,464 net to
the Trust). Hilcorp has recouped all of the excess production
costs, being $2,614,448 gross ($1,960,836 net to the Trust), that
had accumulated against the subject interests since the June 2019
distribution.
After payment of the Trust’s administrative expenses for the
month, the Trustee will replenish the Trust’s cash reserves by net
amount of $95,130. 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 to the previously
established amount of $1.0 million. As of October 31, 2019, the
Trust’s cash reserves were $516,708.
Based upon information provided to the Trust by Hilcorp, gas
production for the subject interests totaled 3,227,134 Mcf
(3,585,705 MMBtu) for September 2019, as compared to 911,518 Mcf
(1,012,798 MMBtu) for August 2019. Dividing revenues by production
volume yielded an average gas price for September 2019 of $1.58 per
Mcf ($1.42 per MMBtu), as compared to an average gas price for
August 2019 of $1.84 per Mcf ($1.66 per MMBtu).
Hilcorp has advised the Trust that the September 2019 reporting
month included additional revenue of $1.5 million gross ($1.1
million net to the Trust) based on true-ups and adjustments for the
productions months of August and September 2017 and August 2019.
Hilcorp also reported that for the reporting month of September
2019, revenue included an estimated $169,000 for non-operated
revenue. For the month ended September 2019, Hilcorp reported to
the Trust capital costs of $11,764, lease operating expenses and
property taxes of $2,085,143, and severance taxes of $453,445.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191118005195/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 Apr 2024 to May 2024
San Juan Basin Royalty (NYSE:SJT)
Historical Stock Chart
From May 2023 to May 2024