San Juan Basin Royalty Trust expenses fall $976K

SJT expects to resume national newswire distribution with its October 2026 release as the trustee discusses options for the facility maturing in May 2027.

Rhea-AI Filing Summary

San Juan Basin Royalty Trust (SJT), through Argent Trust Company as trustee, provided updates on expense reporting, an audit adjustment, liquidity and investor communications. Beginning with its Form 10-Q for the three- and nine-month periods ending September 30, 2026, the Trust will break out year-over-year general and administrative expenses by category and add a related-party disclosure. It attributed an approximately $976,000 decrease in those expenses primarily to costs from the 2024 trustee transition that have not recurred and changes in consultant responsibilities.

For the 2017–2020 joint interest audit adjustment, the Trustee said it did not pursue action beyond the adjustment reflected in the Trust’s financial statements, concluding further dispute or recovery costs outweighed the likelihood and magnitude of additional recovery. The royalty auditor continues reviewing a related prior-period adjustment reported in 2026, and a new royalty auditor has been engaged for ongoing joint interest billing oversight. The Trust’s $2,000,000 credit facility matures May 21, 2027; approximately $1,075,400 was outstanding as of September 18, 2026. The Trustee is discussing an extension, renewal or replacement and evaluating other financing sources. National newswire distribution is expected to resume with the October 2026 monthly release.

Filing Explained

This 8-K clarifies the development-control arrangement: Hilcorp, as operator, controls the pace and scope of development, and neither the Trustee nor unit holders can direct or veto its capital program; the Trustee says it lacks visibility into Hilcorp’s internal well-level economics.

8-K Event Classification

2 items: 7.01, 9.01

2 items

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Year-over-year decrease in general and administrative expenses: Approximately $976,000 Credit facility: $2,000,000 Outstanding principal balance: Approximately $1,075,400 +1 more

4 metrics

Year-over-year decrease in general and administrative expenses Approximately $976,000 Attributed primarily to trustee transition costs that have not recurred and changes in consultant responsibilities

Credit facility $2,000,000 Facility with Texas Bank; maturity May 21, 2027

Outstanding principal balance Approximately $1,075,400 As of September 18, 2026

Expected start of national newswire distribution October 2026 Expected to begin with the monthly press release for that month

Key Terms

joint interest audit, net overriding royalty interest, Sarbanes-Oxley (“SOX”) testing, joint interest billings

4 terms

joint interest audit technical

"2017–2020 joint interest audit adjustment"

An audit of charges and accounting records related to activities run jointly by two or more parties, most often in oil and gas partnerships, to verify that costs, revenue shares and allocations follow the joint operating agreement and applicable rules. Like one roommate checking a shared household bill to make sure charges were split correctly, the audit can identify billing errors, misallocated expenses or potential adjustments that may change reported liabilities or cash flows.

net overriding royalty interest financial

"created the Trust’s net overriding royalty interest"

A net overriding royalty interest is a carved-out entitlement to a portion of oil or gas production or revenue that does not carry responsibility for drilling, operating, or most extraction costs; 'net' indicates the share is measured after applicable production burdens such as other royalties, taxes, or transportation fees. It functions like receiving a slice of revenue from a specific well without owning or running the well. Investors care because it creates a predictable income stream tied to production levels and commodity prices, but with different risk and cost exposure than owning the producing asset itself.

Sarbanes-Oxley (“SOX”) testing regulatory

"performed required Sarbanes-Oxley (“SOX”) testing"

joint interest billings technical

"oversight of the Trust’s joint interest billings"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is SJT’s outstanding credit facility balance?

The balance was approximately $1,075,400 as of September 18, 2026. The Trust’s credit facility with Texas Bank is $2,000,000 and matures May 21, 2027.

Why did SJT’s general and administrative expenses decrease?

The Trust attributed the approximately $976,000 year-over-year decrease primarily to transition-related costs that did not recur. It also cited consultant duties absorbed by the Trustee and a replacement consultant that reduced expenses associated with Sarbanes-Oxley testing.

Which expense categories will SJT report separately?

Beginning with the Form 10-Q for the three- and nine-month periods ending September 30, 2026, the Trustee will break out trustee fees, legal and professional fees, accounting and audit fees, Unit Holder servicing costs, and investor communication costs.

How will SJT distribute its monthly press releases?

The Trustee expects national newswire distribution to begin with the October 2026 monthly release. The Trust also uses its website, its existing email list, and inclusion of each release as an exhibit to its monthly SEC report.

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

Understanding 8-K Material Events →

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Available on EDGAR 09/28/2026 - 05:04 PM Accepted by SEC EDGAR 09/28/2026 - 05:04 PM Learn about SEC filing dates

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report September 28, 2026

SAN JUAN BASIN ROYALTY TRUST

(Exact name of Registrant as Specified in Its Charter)

Texas			001-08032	75-6279898
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
Argent Trust Company, Trustee 3838 Oak Lawn Ave. Suite 1720 Dallas, Texas 75219
(Address of Principal Executive Offices, including zip code)

Registrant’s Telephone Number, Including Area Code: (855) 588-7839

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Units		SJT		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure

On September 28, 2026, the San Juan Basin Royalty Trust (the "Trust") issued a press release, a copy of which is attached hereto as Exhibit 99.1, providing additional information in response to recent inquiries from holders of the Trust's units of beneficial interest ("Unit Holders").

In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item 9.01 Financial Statements and Exhibits.

Exhibit No.		Description
99.1		Press Release dated September 28, 2026

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		By:	ARGENT TRUST COMPANY, AS TRUSTEE FOR THE SAN JUAN BASIN ROYALTY TRUST (Registrant)
Date:	September 28, 2026	By:	/S/ NANCY WILLIS
			Nancy Willis Director of Royalty Trust Services

News Release

San Juan Basin Royalty Trust Provides Update on Operations and Liquidity

DALLAS, Texas, September 28, 2026 — Argent Trust Company, as the trustee (the “Trustee”) of the San Juan Basin Royalty Trust (the “Trust”) (NYSE: SJT), today is providing additional information in response to recent inquiries from holders of the Trust’s units of beneficial interest (“Unit Holders”). The Trustee is providing this information so that all Unit Holders and the market receive the same information at the same time, and it supplements the disclosures in the Trust’s reports and other filings with the Securities and Exchange Commission (the “SEC”), which are available at www.sec.gov and which Unit Holders are encouraged to review.

Administrative Expenses. Trustee fees are disclosed in the Form 10-Q under Note 12 and in the Form 10-K under Item 11, Executive Compensation. Related-party transactions are disclosed in the Form 10-K under Item 13. Beginning with the Form 10-Q for the three- and nine-month periods ending September 30, 2026, the Trustee will further break out the year-over-year change in general and administrative expenses by category including trustee fees, legal and professional fees, accounting and audit fees, Unit Holder servicing costs, and investor communication costs. Further, the Trustee will add a related-party disclosure to Note 12, as the only affiliated transactions currently are the trustee fees.

The year-over-year decrease of approximately $976,000 in general and administrative expenses is primarily attributable to costs associated with the 2024 trustee transition from PNC Bank to Argent Trust Company. That transition required an amendment to the Amended and Restated Royalty Trust Indenture, dated December 12, 2007 (as amended, the “Trust Indenture”), which in turn required a Unit Holder vote and generated legal fees, compliance costs, and other transition-related professional fees in the prior period that have not recurred. In addition, two consultants engaged to assist with preparing documents required for the audit of the financial statements and monthly reporting for PNC Bank were retained for an interim period following the transition. Those duties have since been fully absorbed by the Trustee, eliminating those costs going forward. Another consultant that performed required Sarbanes-Oxley (“SOX”) testing that was engaged by PNC was replaced by one that Argent utilizes for the other royalty trusts for which Argent is trustee, resulting in a significant reduction of expenses associated with SOX testing.

2017–2020 Joint Interest Audit Adjustment. Argent inherited the 2017–2020 joint interest audit process from PNC Bank in a near-complete state at the time of the 2024 trustee transition. The audit underway at the time of the transition in 2024 continued, and Argent and the audit team remained in regular dialogue with Hilcorp regarding findings. In addition to the oil and gas royalty auditors, Argent engaged outside legal counsel previously engaged by PNC as trustee to review the audit and the resulting adjustment. Further, PNC Bank was separately consulted on the adjustment on several occasions, with its position, as well as historical information provided by PNC, taken into consideration by Argent and the professionals engaged to audit and review the audit on behalf of the Trust.

Upon conclusion of the audit, the Trustee concluded that the cost of pursuing further dispute or recovery outweighed the likelihood and magnitude of any additional recovery and did not pursue action beyond the adjustment reflected in the Trust’s financial statements. Historically, the Trust’s royalty auditor has audited Hilcorp’s payments and identified exceptions, which were then reviewed with the Trust’s legal counsel and the Trustee to determine the appropriate next steps. The recovery obtained in 2023 arose from an exception identified through that audit process and pursued from an early stage, whereas the audit underlying the 2017–2020 adjustment was already substantially complete when Argent inherited it. Regarding the related prior-period adjustment the Trust reported in 2026, the Trust’s royalty auditor continues to review this matter, and the Trustee expects to provide additional information once available.

To provide additional testing and oversight of the Trust’s joint interest billings on an ongoing basis, the Trustee has engaged a new royalty auditor. As previously disclosed, the Trust’s third-party compliance auditors continue to audit payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments.

Hilcorp Capital Expenditures. Hilcorp, as operator, controls the pace and scope of development under the conveyance that created the Trust’s net overriding royalty interest (the “Conveyance”). Neither the Trustee nor the Unit Holders have authority to direct or veto Hilcorp’s capital program. The Trustee maintains regular, constructive communication with Hilcorp and receives periodic updates on development activity, production trends, and excess costs, but does not have visibility into Hilcorp’s internal well-level economics. The Trustee has exercised its rights to receive updates and to raise questions with Hilcorp regarding the pace and economics of its spending. The Trustee continues to monitor Hilcorp’s capital expenditures and the sale prices for natural gas, with consideration to Hilcorp’s obligation to act as a prudent operator under Section 6.01 of the Conveyance. The Trust’s disclosure of its rights regarding Hilcorp’s level of development is set out in Item 1A, Risk Factors, of the 2025 Form 10-K and subsequent filings.

Liquidity and Credit Facility. The Trust has a $2,000,000 credit facility with Texas Bank (the “Line of Credit”) that matures on May 21, 2027. As reported in the Trust’s most recent monthly press release, the outstanding principal balance on the Line of Credit was approximately $1,075,400 as of September 18, 2026. The Trustee is in discussions with Texas Bank regarding an extension, renewal, or replacement of the facility, and is evaluating other financing sources, including, but not limited to, other commercial lenders, Unit Holders, and private lenders. Any financing arrangement would need to be consistent with the Trust Indenture and applicable securities laws, and fully disclosed to Unit Holders.

The material terms of the Line of Credit are disclosed in the Form 8-K filed May 28, 2025, and in the Trust’s subsequent Forms 10-Q and 10-K, and the Trustee will continue to update these disclosures each quarter. The Trustee remains closely focused on the Trust’s liquidity position and the status of the Texas Bank credit facility in advance of its May 2027 maturity.

Investor Communications. The Trustee has given careful consideration to the distribution of the Trust’s monthly press releases and other material communications, and has determined that reinstating national newswire distribution is a reasonable and worthwhile step to ensure Unit Holders, prospective investors, analysts, and financial media all continue to receive consistent, timely, and broadly accessible information about the Trust.

Accordingly, the Trustee will restore national newswire distribution of the Trust’s monthly press releases. This is in addition to the channels the Trust already uses: publication on the Trust’s website, www.sjbrt.com, distribution to its existing email list, and inclusion of each release as an exhibit to the Trust’s monthly Form 8-K filed with the SEC. The Trustee expects to begin newswire distribution with the release for the month of October 2026.

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
	Fax: (214) 559-7010
	Website: www.sjbrt.com
	Email: trustee@sjbrt.com

Filing Exhibits & Attachments

1 document

Press Releases

• EX-99.1 EX-99.1 26.3 KB