San Juan Basin Royalty Trust reports developments tied to its royalty interest in natural gas and oil properties in the San Juan Basin of New Mexico. The trust's news centers on monthly cash distribution declarations for units of beneficial interest, net proceeds from subject interests operated by Hilcorp, and the effect of natural gas pricing, production costs, capital expenditures, and trust expenses on royalty income.
Updates also cover Hilcorp capital project plans for the subject interests, including drilling, recompletions, workovers, and natural gas compression facilities in formations such as Mesaverde, Mancos, Dakota, Fruitland Coal, and Pictured Cliffs. Recurring releases describe gas and oil revenue, production volumes, excess production costs, and the trustee's distribution decisions.
PNC Bank, as the successor trustee of San Juan Basin Royalty Trust (NYSE: SJT), has declared a monthly cash distribution amounting to $4,821,486.55 or $0.103446 per Unit, based on November 2021's production. The distribution is payable on February 14, 2022, to Unit Holders of record as of January 31, 2022. Hilcorp reported net profits of $6,606,455 and revenues of $10,122,294 for the same period, with production costs at $3,515,839. Gas prices averaged $4.60 per Mcf, up from $4.35 in October.
PNC Bank, as the trustee for San Juan Basin Royalty Trust (NYSE: SJT), has declared a monthly cash distribution of $5,240,726.18 ($0.112441 per Unit) for October 2021. The distribution will be paid on January 14, 2022, to Unit Holders on record as of December 31, 2021. Hilcorp San Juan L.P. reported net profits of $7,120,430 and revenues of $10,514,072 for the production month, while production costs were $3,393,641. Gas volumes increased compared to September, with an average price of $4.35 per Mcf.
PNC Bank, as the Trustee of San Juan Basin Royalty Trust (NYSE: SJT), announced a monthly cash distribution of $6,982,507.89 or $0.149811 per Unit, payable on December 14, 2021. This is based on production reported for September 2021. Hilcorp reported $9,520,577 in net profits, with revenues of $7,603,853. Gas production was approximately 167,812 Mcf, averaging $3.60 per Mcf. The Trustee is working with Hilcorp regarding accounting and reporting issues. Previous discrepancies in their accounting system have been addressed.
PNC Bank, as Trustee for the San Juan Basin Royalty Trust (SJT), provided updates on Hilcorp's monthly reporting concerning gross proceeds and severance taxes. Following a November 2021 meeting, Hilcorp identified that it owes an additional $448,780 in revenues for early 2021 along with $63,496 interest. It also discovered accounting errors leading to a reimbursement of $2,681,521 for mislabeled accounts, with $72,667 in interest. Hilcorp is correcting its accounting practices, and the Trust's auditors continue to review the payments made.
PNC Bank, as the successor Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), has declared a monthly cash distribution of $3,155,671, equating to $0.067705 per Unit, to Unit Holders. The distribution, based on August 2021 production, will be payable on November 15, 2021. Hilcorp reported August gross revenue of $7,582,753, with gross production costs of $3,175,587, resulting in profits of $4,407,166 gross ($3,305,374 net). Notably, gas production increased slightly from July, with an average gas price of $3.37 per Mcf.
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), declared a monthly cash distribution of $1,724,289.03 or $0.036995 per Unit for July 2021, payable on October 15, 2021. Hilcorp reported gross revenue of $7,512,674 and production costs of $4,837,606, yielding profits of $2,675,068 gross and $2,006,301 net to the Trust. Gas production increased to 2,147,718 Mcf, but average gas prices decreased to $3.28 per Mcf compared to June. The Trust's cash reserves will be replenished to $1 million.
BBVA USA, Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), announced no monthly cash distribution for Unit Holders due to excess production costs for June 2021. Hilcorp reported gross profits of $1,850,948.35 but adjusted for true-ups led to a net profit of $1,388,211.26. Corrections for previous months decreased June profits by over $2 million. Cash reserves will cover administrative expenses, while excess costs of $1,091,749.10 will affect future distributions. June's gas production was 1,568,223 Mcf with an average price of $3.46 per Mcf.
BBVA USA, Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), provided a report on the revenue and severance taxes concerning the Trust's interests managed by Hilcorp San Juan L.P. Due to Hilcorp's transition to a new accounting system, only estimates have been reported for revenue and taxes for specific months. The true-ups for previous months are expected but without a confirmed timeline. Hilcorp will pay interest for any underpayments, while waiving it for any overpayments based on the true-ups.
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), announced a monthly cash distribution of $3,949,643.61, equating to $0.084740 per Unit. This distribution is based on estimated May 2021 production and will be payable on August 13, 2021, to record Unit Holders as of July 30, 2021. Gas production for May was reported at 2,695,014 Mcf, an increase from April's 2,498,553 Mcf, with an average gas price rising to $1.88 per Mcf. Additional profits of $2,559,341 gross were identified due to true-ups for previous months.
BBVA USA, as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), announced a monthly cash distribution of $821,024.63, equating to $0.017615 per Unit, based on estimated April 2021 production. This distribution is payable on July 15, 2021, to Unit Holders of record as of June 30, 2021. April gas production totaled 2,498,553 Mcf, a decrease from March's 2,617,042 Mcf, with the average gas price dropping to $1.67 per Mcf from $2.07. Hilcorp informed the Trust that the figures for April were based on estimates due to a transition to a new accounting system.