San Juan Basin Royalty Trust Declares Cash Distribution for December 2021
December 20 2021 - 8:00AM
Business Wire
PNC Bank, National Association, as the successor trustee (the
“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
$5,240,726.18 or $0.112441 per Unit, based primarily upon the
reported production during the month of October 2021. The
distribution is payable January 14, 2022, to the Unit Holders of
record as of December 31, 2021.
For the production month of October 2021, the operator of the
Trust’s subject interests, Hilcorp San Juan L.P. (“Hilcorp”),
reported to the Trust net profits of $7,120,430 ($5,340,323 net
royalty amount to the Trust).
Hilcorp reported $10,514,072 of revenue from the Subject
Interests for the production month of October 2021. The reporting
month of October 2021 also included other revenues of $201,015
consisting of $101,015 in nonrecurring additional revenue related
to granted audit exceptions and interest, and an estimated $100,000
for non-operated income. For the Subject Interests, Hilcorp
reported $3,393,641 of production costs during the production month
of October 2021. Production costs consist of $2,025,265 of lease
operating expenses, $1,352,895 of severance taxes and $15,481 of
capital costs.
Based upon information Hilcorp provided to the Trust, gas
volumes for the subject interests for October 2021 totaled
2,238,507 Mcf (2,487,230 MMBtu), as compared to 2,120,403 Mcf
(2,356,003 MMBtu) for September 2021, excluding prior
actualizations. Dividing revenues by production volume yielded an
average gas price for October 2021 of $4.35 per Mcf ($3.92 per
MMBtu), as compared to an average gas price for September 2021,
excluding prior actualizations, of $3.60 per Mcf ($3.24 per
MMBtu).
Hilcorp has informed the Trust that it has completed the
implementation of its new accounting system. Hilcorp began
reporting actual, instead of estimated, production for the June
2021 production month (corresponding to the August 2021 Trust
reporting month) and that it intends to continue to report actual
production going forward. The remaining months of non-operated
revenue and non-operated severance tax actualizations for prior
periods will be accounted for and reported in future distribution
reports. At this time, the amount of these actualizations is
unknown. The Trustee will coordinate with Hilcorp on the timing of
any further actualizations and will communicate that timing to the
Unit Holders.
The Trustee also continues to engage with Hilcorp regarding its
ongoing accounting and reporting to the Trust, and the Trust’s
third-party compliance auditors continue to audit all payments made
by Hilcorp to the Trust, including adjustments, actualizations, 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,” “intends,” “unknown,” “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/20211220005223/en/
San Juan Basin Royalty Trust PNC Bank, National Association PNC
Asset Management Group 2200 Post Oak Blvd., Floor 18 Houston, TX
77056
website: www.sjbrt.com e-mail: sjt@pnc.com James R. Wilharm,
Senior Vice President and Director of Trust Real Estate Services
Kaye Wilke, Investor Relations, toll-free: (866) 809-4553
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