Hilcorp plans $14M 2026 spend for San Juan Basin Royalty Trust (SJT)

Rhea-AI Filing Summary

San Juan Basin Royalty Trust reported that Hilcorp Energy Company has outlined a 2026 capital project plan for the Trust’s subject interests totaling approximately $14.0 million across 32 projects. Most of this budget targets new drilling in the Mesaverde, Mancos, Dakota and related formations.

About $11.5 million will fund nine new vertical wells and six new horizontal wells, $2.0 million will go to 17 recompletion and workover projects, and $0.5 million to facilities and compression. Hilcorp also reported that 2025 capital spending was approximately $8.3 million, compared with a prior projection of about $9.0 million.

Insights

Energy royalties analyst

Hilcorp plans higher 2026 capital spending on San Juan Basin assets.

The trustee disclosed that Hilcorp’s 2026 capital plan for the Trust’s subject interests totals about $14.0 million across 32 projects. Most of this focuses on new vertical and horizontal drilling in Mesaverde, Mancos and Dakota formations, plus recompletions and facilities work.

For 2025, Hilcorp had projected capital expenditures of about $9.0 million and ultimately spent roughly $8.3 million, with around $4.0 million on seven drilling projects and $4.3 million on 23 recompletions and workovers. Actual production and distributions will depend on commodity prices, realized well performance and any revisions Hilcorp makes to this plan.

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 February 18, 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 February 19, 2026, the San Juan Basin Royalty Trust (the “Trust”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing that Hilcorp San Juan L.P. had provided the Trust with its 2026 Capital Expenditures Plan.

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 February 19, 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:	February 20, 2026	By:	/S/ NANCY WILLIS
			Nancy Willis Director of Royalty Trust Services

News Release

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

DALLAS, Texas, February 19, 2026 – 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

FAQ

What 2026 capital spending did Hilcorp outline for San Juan Basin Royalty Trust (SJT)?

Hilcorp provided the Trust a 2026 capital project plan totaling approximately $14.0 million for the Trust’s subject interests. The plan covers 32 projects, including new drilling, recompletions, workovers, and facilities work on formations such as Mesaverde, Mancos, Dakota, Fruitland Coal, and Pictured Cliffs.

How will Hilcorp’s $14 million 2026 budget for SJT be allocated across projects?

Hilcorp plans to allocate about $11.5 million of the $14.0 million budget to nine new vertical wells and six new horizontal wells. Roughly $2.0 million will fund 17 recompletions and workovers, and about $0.5 million is earmarked for facilities, including natural gas compression and related projects.

How did Hilcorp’s actual 2025 capital spending for SJT compare with its projection?

For 2025, Hilcorp had projected capital expenditures of approximately $9.0 million and ultimately spent about $8.3 million. Around $4.0 million went to seven drilling projects, while roughly $4.3 million funded 23 recompletions and workovers on the Trust’s subject interests.

What types of drilling projects are included in Hilcorp’s 2026 plan for San Juan Basin Royalty Trust?

The 2026 plan includes nine new vertical drilling projects in the Mesaverde, Mancos, and Dakota formations and six new horizontal drilling projects in the Mancos formation. These projects represent the majority of the approximately $11.5 million drilling-focused portion of the overall $14.0 million budget.

What recompletion and facilities work are planned for SJT’s subject interests in 2026?

Hilcorp expects to spend about $2.0 million on 17 recompletion and workover projects in the Fruitland Coal and Pictured Cliffs formations. An additional $0.5 million is planned for facilities projects, including natural gas compression and other facilities-related improvements on the Trust’s subject interests.

Are Hilcorp’s 2026 capital spending estimates for San Juan Basin Royalty Trust final?

Hilcorp stated its 2026 capital plan and $14.0 million estimate are subject to revision if underlying assumptions change. It also noted that actual capital costs may differ from the estimates provided, reflecting operational factors and evolving conditions affecting the Trust’s subject interests.

Filing Exhibits & Attachments

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Press Releases

• EX-99.1 EX-99.1 9.7 KB