San Juan Basin Trust skips Sept 2026 payout

San Juan Basin Royalty Trust is suspending its September 2026 cash distribution while a growing excess-cost deficit and line-of-credit balance are repaid.

Rhea-AI Filing Summary

San Juan Basin Royalty Trust (SJT) reported that it will not declare a monthly cash distribution for September 2026 because production costs and capital expenditures on its subject interests continue to exceed gross proceeds and natural gas prices remain low. Cumulative excess production costs total $12,553,466 gross ($9,415,100 net to the Trust), increasing the deficit by $1,122,634 gross ($841,976 net) from the prior month. For July 2026 production, Hilcorp reported $4,293,096 of total revenue from the subject interests and $5,415,731 of production costs (excluding the excess-cost balance), resulting in no net royalty income. The Trust drew $44,606 on its line of credit, bringing the principal balance to $1,075,400, and will not resume cash distributions until excess production costs are fully repaid, a $2,000,000 reserve is replenished, and the line of credit (principal and interest) is repaid.

Positive

• None.

Negative

• September 2026 cash distribution suspended as production costs and low gas prices leave no royalty income for unitholders.
• Cumulative excess production costs $12.55 million gross ($9.42 million net), with the deficit increasing by $1.12 million gross in the latest period.
• Line of credit balance increased to $1.08 million, and no distributions will resume until this debt and the excess-cost deficit are fully repaid and a $2 million reserve is rebuilt.

Filing Explained

September administrative expenses required a 44,606-dollar credit-line draw, leaving 1,075,400 dollars of principal outstanding.

September administrative expenses were $44,628; $23 of interest income and a $44,606 line-of-credit draw funded those expenses, leaving outstanding principal at $1,075,400.

For July 2026, gas volume was 2,046,556 Mcf, and the average gas price was $2.01 per Mcf, up from $1.46 per Mcf in June.

The Trust's cash reserve was $3,891, unchanged from the prior month. Its third-party compliance auditors continue reviewing Hilcorp payments, including revenues, costs, capital expenditures, adjustments, actualizations, and recoupments.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

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

Key Figures

Cumulative excess production costs (gross): $12,553,466 Cumulative excess production costs (net to Trust): $9,415,100 Increase in excess production costs (gross): $1,122,634 +5 more

8 metrics

Cumulative excess production costs (gross) $12,553,466 Balance of excess production costs outstanding as of the current reporting period

Cumulative excess production costs (net to Trust) $9,415,100 Net excess production cost balance attributable to the Trust

Increase in excess production costs (gross) $1,122,634 Month-over-month increase in gross excess production costs

Total revenue from Subject Interests for July 2026 $4,293,096 Includes $4,116,328 gas revenue and $176,768 oil revenue

Total production costs for July 2026 $5,415,731 Lease operating $2,918,257; severance taxes $385,466; capital costs $2,112,008

Line of Credit principal balance $1,075,400 Outstanding principal after a $44,606 draw to fund September administrative expenses

Target reserve to be replenished $2,000,000 Cash reserve that must be restored before distributions resume

Average gas price July 2026 $2.01 per Mcf Compared with $1.46 per Mcf for June 2026

Key Terms

excess production costs, net proceeds, lease operating expenses, severance taxes, +2 more

6 terms

excess production costs financial

"Excess production costs occur when production costs and capital expenditures exceed"

Extra money a company spends when making more goods than needed, producing under inefficient conditions, or when materials and labor are wasted during manufacturing. Like baking too many cakes that go stale or using an expensive oven for a small batch, these costs raise the price of each item and tie up cash in unsold inventory. Investors care because higher excess production costs reduce profit margins, can signal poor planning, and may pressure future earnings and cash flow.

net proceeds financial

"Hilcorp will continue to charge the balance of excess production costs to the Trust’s net proceeds"

The amount of money a company actually keeps from a sale or fundraising after paying all direct costs and fees, similar to take-home pay after taxes and deductions. Investors care because net proceeds determine how much cash is available for things that affect value—paying debt, funding projects, buying assets, or returning money to shareholders—so it influences future growth potential and financial health.

lease operating expenses financial

"consisting of $2,918,257 of lease operating expenses, $385,466 of severance taxes"

Costs required to keep a leased property or asset running, including routine maintenance, repairs, utilities, insurance, property taxes and management fees that the lessee or lessor must pay while the lease is active. Investors care because these recurring outlays reduce net income and cash flow from the lease—like owning a rental where you still pay for upkeep—so they affect profitability, yield and the true return on an investment tied to leased assets.

severance taxes financial

"lease operating expenses, $385,466 of severance taxes, and $2,112,008 of capital costs"

Severance taxes are charges governments levy when natural resources like oil, gas, coal or minerals are extracted from the ground; think of it as a toll for taking nonrenewable materials out of a region. They matter to investors because they directly raise the cost of production, reduce project returns, and influence where companies choose to operate, while also providing a predictable revenue stream for local and state budgets that can affect broader economic conditions.

Line of Credit financial

"repay the principal and interest on the Trust’s line of credit at Texas Bank"

A line of credit is a flexible borrowing arrangement that lets a company draw money up to a preset limit, repay it, and borrow again as needed—similar to a business credit card or an emergency tap on a savings account. It matters to investors because it shows how a firm manages short-term cash needs and growth funding without taking a single large loan; access, cost, and attached conditions can affect liquidity, interest expenses and financial risk.

forward-looking statements regulatory

"these statements are forward-looking statements that are made pursuant to the Safe Harbor"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

FAQ

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

Why is San Juan Basin Royalty Trust (SJT) paying no cash distribution for September 2026?

The Trust will pay no September 2026 distribution because production costs and capital expenditures exceed gross proceeds and low natural gas prices persist, leaving no net royalty income after applying all net proceeds to excess production costs.

How large are SJT’s excess production costs as of the latest report?

Cumulative excess production costs are approximately $12,553,466 gross and $9,415,100 net to the Trust, an increase of $1,122,634 gross and $841,976 net from the prior reporting period.

What revenues and production costs did SJT report for July 2026?

For July 2026, Hilcorp reported $4,293,096 of total revenue from the subject interests and $5,415,731 of production costs (excluding the excess-cost balance), including $2,918,257 lease operating expenses, $385,466 severance taxes, and $2,112,008 capital costs.

What is the status of San Juan Basin Royalty Trust’s line of credit?

A draw of $44,606 will pay September administrative expenses, bringing the outstanding principal on the Trust’s line of credit at Texas Bank to $1,075,400. Distributions will not resume until this principal and interest are repaid.

When can SJT resume paying cash distributions to unitholders?

Distributions will resume only after excess production costs are fully repaid, a $2,000,000 cash reserve is replenished, and principal and interest on the line of credit are paid. Until then, all net proceeds will be applied to these obligations.

How did natural gas pricing and volumes for SJT change in July 2026?

For July 2026, gas volumes were 2,046,556 Mcf, up from 1,950,221 Mcf in June 2026. The average gas price was $2.01 per Mcf versus $1.46 per Mcf in June, despite which net proceeds remained negative.

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

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Available on EDGAR 09/18/2026 - 03:58 PM Accepted by SEC EDGAR 09/18/2026 - 03:57 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 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 2.02 Results of Operations and Financial Condition.

On September 18, 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 it would not declare a monthly cash distribution to the holders of its units of beneficial interest ("Units") for September due to excess production costs for the Trust’s subject interests (“Subject Interests”), as well as continued low natural gas pricing.

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 18, 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 18, 2026	By:	/S/ NANCY WILLIS
			Nancy Willis Director of Royalty Trust Services

News Release

San Juan Basin Royalty Trust Declares No Cash Distribution for September 2026

DALLAS, Texas, September 18, 2026 Argent Trust Company, as the trustee (the “Trustee”) of the San Juan Basin Royalty Trust (the “Trust”) (NYSE: SJT), today reported that it will not declare a monthly cash distribution to the holders of its units of beneficial interest (the “Unit Holders”) due to excess production costs incurred during prior periods for the Trust’s royalty interest burdening the subject interests (“Subject Interests”), as well as continued low natural gas pricing. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. The balance of cumulative excess production costs is currently approximately $12,553,466 gross ($9,415,100 net to the Trust), an increase in the deficit of $1,122,634 gross ($841,976 net to the Trust) from last month’s reporting period. Hilcorp will continue to charge the balance of excess production costs to the Trust’s net proceeds each month. Until the balance is paid in full, the Trust will not receive royalty income as all net proceeds will be applied to the balance of excess production costs. No cash distributions will be made by the Trust until future net proceeds are sufficient to (a) repay the balance of excess production costs, accrued as a result of Hilcorp San Juan L.P.’s drilling of two new horizontal wells in 2024, (b) replenish a reserve in the amount of $2,000,000, and (c) repay the principal and interest on the Trust’s line of credit at Texas Bank (“Line of Credit”), after which time, the Trust will resume distributions of the royalty income to the holders of the Trust’s units of beneficial interest.

Hilcorp reported $4,293,096 of total revenue from the Subject Interests for the production month of July 2026, consisting of $4,116,328 of gas revenues, and $176,768 of oil revenues.

For the Subject Interests, Hilcorp reported $5,415,731 of production costs (excluding the balance of excess production costs) for the production month of July 2026, consisting of $2,918,257 of lease operating expenses, $385,466 of severance taxes, and $2,112,008 of capital costs.

Based upon information provided to the Trust by Hilcorp, gas volumes for the Subject Interests for July 2026 totaled 2,046,556 Mcf (2,273,951 MMBtu), as compared to 1,950,221 Mcf (2,166,912 MMBtu), for June 2026. Dividing gas revenues by production volume yielded an average gas price for July 2026 of $2.01 per Mcf ($1.81 per MMBtu), an increase of $0.55 per Mcf ($0.50 per MMBtu) as compared to the average gas price for June 2026 of $1.46 per Mcf ($1.31 per MMBtu).

This month’s Trust administrative expenses totaled $44,628. The increase in administrative expenses was attributable to differences in timing of the receipt and payment of certain expenses by the Trust. Interest income in the amount of $23 and a draw of $44,606 from the Line of Credit will be used to pay the balance of Trust administrative expenses for the month of September which will bring the outstanding principal balance on the Line of Credit to $1,075,400.

Pursuant to the Amended and Restated Royalty Trust Indenture, dated December 12, 2007 (as amended on February 15, 2024, by the First Amendment to the Amended and Restated Royalty Trust Indenture), the Trustee is authorized to retain, in its sole discretion, a cash reserve for payment of Trust liabilities that are contingent or uncertain or otherwise not currently due and payable. Cash reserves were utilized to pay interest accrued on the Line of Credit each month from July 2025 through May 2026. The balance of cash reserves maintained by the Trust is unchanged from the prior month, and is currently $3,891.

Production from the Subject Interests continues to be gathered, processed, and sold under market sensitive and customary agreements, as recommended for approval by the Trust’s Consultant. The Trustee 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 payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. The Trust’s auditing process has also included detailed analysis of Hilcorp’s pricing and rates charged. As previously disclosed in the Trust’s filings, these revenues and costs (along with all costs) are the subject of the Trust’s ongoing comprehensive audit process by the Trust’s professional

consultants and outside counsel to analyze compliance with all the underlying operative Trust agreements and evaluate potential remedies in the event there is suspected non-compliance.

As of July 21, 2025, the Trust self-publishes monthly press releases on its website, www.sjbrt.com, and the release will not be included in any wire distribution. The self-publication is due to the depletion of the Trust’s cash reserves and conservation of the Line of Credit resources. The Trust will continue to furnish unitholders with information through its website and Form 8-K filings with the Securities and Exchange Commission, which are available at www.sec.gov. If anyone would like to receive the press release via email, please contact the Trustee to be placed on the monthly press release email list.

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 24.1 KB