San Juan Basin Royalty Trust Announces Hilcorp's 2026 Capital Plan

Rhea-AI Summary

San Juan Basin Royalty Trust (NYSE: SJT) disclosed Hilcorp's calendar year 2026 capital plan for the Trust's subject interests, estimating $14.0 million in capital expenditures for 2026 across 32 projects.

About $11.5 million is budgeted for nine new vertical and six new horizontal drills, $2.0 million for 17 recompletions/workovers, and $0.5 million for facilities. Hilcorp said the plan is subject to revision and actual costs may vary. For 2025, projected capex was $9.0 million and actual spent was $8.3 million.

Positive

• 2026 capex increased to $14.0M from $9.0M projected in 2025
• 32 projects planned across drilling, recompletions, and facilities
• $11.5M allocated to drilling including vertical and horizontal wells

Negative

• Plan subject to revision and actual capital costs may vary
• 2025 actual capex $8.3M below 2025 projection of $9.0M

News Market Reaction – SJT

-1.43%

-1.43% Session close to close

In the Feb 20 session, SJT declined 1.43%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details Hilcorp’s 2026 capital plan for the trust’s subject interests, including $...

Analysis

This announcement details Hilcorp’s 2026 capital plan for the trust’s subject interests, including $14.0 million across 32 projects, with significant allocations to new vertical and horizontal drilling plus recompletions and facilities work. Compared with the $8.3 million actually spent in 2025, the plan outlines a larger activity slate. Investors may weigh this against recent SEC filings describing excess production costs, suspended distributions, and credit usage, and may watch how future operational results affect net proceeds and potential distributions.

Key Figures

2026 capex plan: $14.0 million 2026 projects count: 32 projects New drilling budget: $11.5 million +5 more

8 metrics

2026 capex plan $14.0 million Hilcorp estimated 2026 capital expenditures for Subject Interests

2026 projects count 32 projects Total projects in Hilcorp 2026 Plan for Subject Interests

New drilling budget $11.5 million Allocated to 9 new vertical and 6 new horizontal wells in 2026 Plan

New wells 2026 9 vertical, 6 horizontal New drill projects in Mesaverde, Mancos, Dakota (vertical) and Mancos (horizontal)

Recompletion/workover budget 2026 $2.0 million For 17 recompletion and workover projects in Fruitland Coal and Pictured Cliffs

Facilities budget 2026 $0.5 million Facilities projects related to natural gas compression and other facilities

Projected 2025 capex $9.0 million Hilcorp projected calendar 2025 capital expenditures for Subject Interests

Actual 2025 capex $8.3 million Hilcorp actual capital expenditures January–December 2025 for Subject Interests

Key Terms

capital expenditures, vertical drill, horizontal drill, recompletions and workovers, +1 more

5 terms

capital expenditures financial

"Hilcorp estimates its 2026 capital expenditures for the Subject Interests..."

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

View in glossary

vertical drill technical

"...allocated to nine new vertical drill projects to be completed in the Mesaverde..."

A vertical drill is a borehole drilled straight down from the surface to reach underground rock, minerals or fluid layers; think of pushing a straw straight into a layered cake to sample what’s directly beneath. For investors, vertical drilling is a basic exploration or production step that provides direct information about depth, composition and potential recoverable resources, and it influences project cost, timeline, and the accuracy of reserve estimates.

horizontal drill technical

"...and six new horizontal drill projects in the Mancos formation."

A drilling technique where the borehole is steered to run horizontally through a targeted rock layer instead of only vertically, like slicing along the filling of a sandwich to reach more of what’s inside from one opening. It matters to investors because horizontal drilling can greatly increase how much oil, gas or minerals can be recovered from a single site and lower the cost per unit produced, while also requiring higher upfront investment and carrying greater technical and operational risk.

recompletions and workovers technical

"allocated to 17 projects for recompletions and workovers in the Fruitland Coal..."

Recompletions and workovers are maintenance or modification operations on existing oil or gas wells aimed at restoring or improving production—examples include cleaning out debris, repairing equipment, changing the zone the well draws from, or reconfiguring the tubing. They matter to investors because they are typically lower-cost, faster ways to boost output, extend a well’s productive life and increase cash flow compared with drilling a new well, similar to tuning up a car to get more miles without buying a new one.

natural gas compression technical

"allocated to facilities projects related to natural gas compression and other facilities..."

Natural gas compression is the process of increasing the pressure of gas so it can move efficiently through pipelines, be stored, or be loaded for transport—think of it like a pump that squeezes gas to keep it flowing. Investors care because compression equipment and capacity determine how much product a company can sell, influence operating costs, maintenance and capital spending, and affect reliability and regulatory compliance, all of which impact cash flow and asset value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DALLAS, Feb. 19, 2026 /PRNewswire/ -- Argent Trust Company, as the trustee (the "Trustee") of the San Juan Basin Royalty Trust (the "Trust") (NYSE: SJT), announced that on Wednesday, February 18, 2026 the operator of the Trust's subject interests ("Subject Interests"), Hilcorp Energy Company ("Hilcorp") provided the Trust with its calendar year 2026 capital project plan for the Subject Interests (the "2026 Plan").  Under the 2026 Plan, Hilcorp estimates its 2026 capital expenditures for the Subject Interests to be approximately $14.0 million.

Hilcorp informed the Trust that the 2026 Plan for the Subject Interests includes 32 projects. Approximately $11.5 million of the $14.0 million budget in the 2026 Plan will be allocated to nine new vertical drill projects to be completed in the Mesaverde, Mancos, and Dakota formations and six new horizontal drill projects in the Mancos formation.  Approximately $2.0 million of the $14.0 million budget will be allocated to 17 projects for recompletions and workovers in the Fruitland Coal and Pictured Cliffs formations, and approximately $0.5 million of the $14.0 million budget will be allocated to facilities projects related to natural gas compression and other facilities projects. Hilcorp further informed the Trust that its 2026 Plan is subject to revision if Hilcorp revises its assumptions underlying the 2026 Plan, and that actual capital costs may vary from these estimates.

For calendar year 2025, Hilcorp projected capital expenditures of approximately $9.0 million.  Hilcorp informed the Trust that Hilcorp's actual capital expenditures from January 2025 through December 2025 totaled approximately $8.3 million.  Hilcorp reports that approximately $4.0 million was spent on seven drilling projects and approximately $4.3 million was spent on 23 recompletions and workovers.

Forward Looking Statements. 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.

Contact:	San Juan Basin Royalty Trust
	Argent Trust Company, Trustee
	Nancy Willis, Director of Royalty Trust Services
	Toll-free: (855) 588-7839 or (866) 809-4553
	Fax: (214) 559-7010
	Website: www.sjbrt.com
	Email: trustee@sjbrt.com

View original content:https://www.prnewswire.com/news-releases/san-juan-basin-royalty-trust-announces-hilcorps-2026-capital-plan-302693218.html

SOURCE San Juan Basin Royalty Trust

FAQ

How much capital expenditure did Hilcorp budget for the San Juan Basin Royalty Trust in 2026 (SJT)?

Hilcorp budgeted approximately $14.0 million for 2026 for the Trust's subject interests. According to Hilcorp, that total funds 32 projects, with major allocations to new vertical and horizontal drilling, recompletions, and facilities work.

What drilling activity is included in Hilcorp's 2026 plan for SJT?

The 2026 plan includes nine new vertical drills and six new horizontal drills, primarily in Mesaverde, Mancos, and Dakota. According to Hilcorp, about $11.5 million of the $14.0 million budget is allocated to these drilling projects.

How does Hilcorp's 2026 capex for SJT compare to 2025 spending?

Hilcorp's 2026 capex of $14.0 million is materially higher than 2025 actual spending of $8.3 million. According to Hilcorp, 2025 actuals were below the prior $9.0 million projection.

What portion of the 2026 SJT budget is for recompletions and workovers?

Approximately $2.0 million of the 2026 budget is allocated to 17 recompletion and workover projects. According to Hilcorp, these projects target the Fruitland Coal and Pictured Cliffs formations.

Are Hilcorp's 2026 capital estimates for SJT final and firm?

No, Hilcorp said the 2026 plan is subject to revision and actual costs may differ from estimates. According to Hilcorp, the plan could change if underlying assumptions are revised.