San Juan Basin Royalty Trust net excess costs near $9.32M

All net proceeds are applied to the excess-cost balance until it is repaid; future distributions also require replenishing a $2,000,000 reserve and repaying the credit line.

Rhea-AI Filing Summary

San Juan Basin Royalty Trust (SJT) will not declare a monthly cash distribution to unitholders for October 2026, citing excess production costs from prior periods and continued low natural gas prices. The cumulative excess-cost balance is approximately $12,423,018 gross ($9,317,264 net to the Trust), down $130,448 gross ($97,836 net) from the prior month. Hilcorp applies all net proceeds to the balance; distributions resume only after it is repaid, a $2,000,000 reserve is replenished, and principal and interest on the Trust’s line of credit are repaid.

For the August 2026 production month, Hilcorp reported $4,868,781 in total revenue and $4,738,333 in production costs, excluding excess production costs. Trust administrative expenses for October totaled $80,118; $17 of interest income and an $80,101 line-of-credit draw will pay those expenses, bringing outstanding principal to $1,155,501. The average August gas price was $2.28 per Mcf, up $0.27 per Mcf from July.

0 points · 0 major

NegativeiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 1 point

How the balance works

Positive

• None.

Negative

• Moderate pointOctober 2026 distribution: none amid excess production costs and low gas prices.

Filing Explained

The Trustee says it is evaluating potential remedies if the review identifies suspected non-compliance with the governing agreements.

The Trust reports cash reserves of $3,891 against the $2 million reserve requirement it says must be replenished before distributions resume, leaving that stated condition unmet.

The Trustee says its comprehensive review of Hilcorp's revenue and cost reporting remains ongoing, including analysis of pricing and rates and compliance with the governing agreements.

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

October 2026 cash distribution: No cash distribution Cumulative excess production costs: Approximately $12,423,018 gross; $9,317,264 net to the Trust Decrease in excess production cost balance: $130,448 gross; $97,836 net to the Trust +5 more

8 metrics

October 2026 cash distribution No cash distribution Monthly distribution to holders of units

Cumulative excess production costs Approximately $12,423,018 gross; $9,317,264 net to the Trust Current balance

Decrease in excess production cost balance $130,448 gross; $97,836 net to the Trust Decrease from the prior month’s reporting period

Total revenue from Subject Interests $4,868,781 August 2026 production month

Production costs excluding excess production costs $4,738,333 Subject Interests, August 2026 production month

Line of Credit outstanding principal $1,155,501 After the October administrative-expense draw

Cash reserve to replenish before distributions resume $2,000,000 Condition for resuming distributions

Average gas price $2.28 per Mcf August 2026; up $0.27 per Mcf from July 2026

Key Terms

excess production costs, net proceeds, Line of Credit, Mcf, +1 more

5 terms

excess production costs financial

"balance of cumulative excess production costs"

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

"all net proceeds will be applied to the balance"

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.

Line of Credit financial

"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.

Mcf technical

"2,057,618 Mcf (2,286,242 MMBtu)"

Mcf stands for thousand cubic feet and is a standard unit used to measure natural gas volume. For investors, Mcf translates physical gas production or consumption into a metric that directly affects revenue and valuation—think of it as counting liters of fuel your car used, where higher Mcf usually means more product to sell or higher costs to buy, and changes can signal shifts in supply, demand, or profitability.

MMBtu technical

"2,057,618 Mcf (2,286,242 MMBtu)"

A MMBtu is a unit of energy equal to one million British thermal units, commonly used to measure natural gas and other fuel quantities for trading and contracts. For investors, it translates raw energy into a standardized price metric—think of it like gallons for gasoline—so changes in the MMBtu price affect producer revenues, utility costs, commodity derivatives, and the profitability of energy-related investments.

Earnings Snapshot

Cash distribution: No cash distribution for October 2026

October 2026 distribution and August 2026 production month

Cash distribution No cash distribution for October 2026

Cumulative excess production costs Approximately $12,423,018 gross; $9,317,264 net to the Trust Decreased by $130,448 gross and $97,836 net from the prior month

Total revenue from Subject Interests $4,868,781

Production costs excluding excess production costs $4,738,333

FAQ

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

Why is SJT not distributing cash for October 2026?

SJT will not declare an October 2026 distribution because of excess production costs incurred in prior periods and continued low natural gas pricing. The cumulative balance is approximately $12,423,018 gross ($9,317,264 net to the Trust).

What were SJT’s August 2026 gas volumes?

Gas volumes for the Subject Interests totaled 2,057,618 Mcf (2,286,242 MMBtu) for August 2026, compared with 2,046,556 Mcf (2,273,951 MMBtu) for July 2026.

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

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Available on EDGAR 10/20/2026 - 05:01 PM EDT Accepted by SEC EDGAR 10/20/2026 - 05:01 PM EDT 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 October 20, 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 October 20, 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 October 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 October 20, 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:	October 20, 2026	By:	/S/ NANCY WILLIS
			Nancy Willis Director of Royalty Trust Services

News Release

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

DALLAS, Texas, October 20, 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 $12,423,018 gross ($9,317,264 net to the Trust), a decrease in the deficit of $130,448 gross ($97,836 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 $4,868,781 of total revenue from the Subject Interests for the production month of August 2026, consisting of $4,688,244 of gas revenues, and $180,537 of oil revenues.

For the Subject Interests, Hilcorp reported $4,738,333 of production costs (excluding the balance of excess production costs) for the production month of August 2026, consisting of $2,899,702 of lease operating expenses, $317,045 of severance taxes, and $1,521,586 of capital costs.

Based upon information provided to the Trust by Hilcorp, gas volumes for the Subject Interests for August 2026 totaled 2,057,618 Mcf (2,286,242 MMBtu), as compared to 2,046,556 Mcf (2,273,951 MMBtu), for July 2026. Dividing gas revenues by production volume yielded an average gas price for August 2026 of $2.28 per Mcf ($2.05 per MMBtu), an increase of $0.27 per Mcf ($0.24 per MMBtu) as compared to the average gas price for July 2026 of $2.01 per Mcf ($1.81 per MMBtu).

This month’s Trust administrative expenses totaled $80,118. 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 $17 and a draw of $80,101 from the Line of Credit will be used to pay the balance of Trust administrative expenses for the month of October which will bring the outstanding principal balance on the Line of Credit to $1,155,501.

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. 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 October 20, 2026, the Trust will resume distributing monthly press releases via wire. 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 23.1 KB