[8-K] San Juan Basin Royalty Trust UBI Reports Material Event

Rhea-AI Filing Summary

San Juan Basin Royalty Trust (NYSE: SJT) filed an 8-K dated 21 Jul 2025 disclosing that no monthly cash distribution will be declared for July 2025. The trustee, Argent Trust Company, cites two factors: (1) excess production costs incurred on the Trust’s Subject Interests during the May 2025 production month and (2) continued low natural-gas pricing. Because production costs exceeded revenues, the net proceeds available for distribution were zero, triggering the suspension under the Trust agreement. A press release detailing the decision is furnished as Exhibit 99.1; it is considered “furnished” under Item 2.02 and not “filed” for Exchange Act liability purposes. No other financial statements, pro-forma data or exhibits were provided. The filing is not associated with any major transaction, change in control or governance matters but directly affects near-term cash flow to unitholders who rely on the monthly payout.

Positive

• None.

Negative

• Suspension of July 2025 distribution eliminates expected income for unitholders and highlights cash-flow vulnerability.
• Low natural-gas prices continue to pressure revenues, suggesting potential for further distribution shortfalls.
• Excess production costs in May 2025 exceeded revenues, indicating operational cost pressure on the Trust.

Insights

Energy Royalty Analyst

TL;DR: SJT’s July payout is zero, reflecting May cost overruns and weak gas prices—negative for income-focused holders.

The Trust’s sole value proposition is converting production revenues into monthly cash distributions. By announcing a zero payout, management signals that operating costs outstripped revenue in May, a period when Henry Hub prices remained subdued. Because SJT lacks hedging and has minimal operating discretion, distributions are directly tied to commodity price volatility. A missed payment undermines the Trust’s attractiveness to yield investors and may pressure unit price until gas prices recover or costs ease. Although one month does not alter reserves, the filing highlights ongoing margin squeeze in the San Juan Basin.

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 July 21, 2025

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 July 21, 2025, 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 July due to excess production costs for the Trust’s subject interests (“Subject Interests”) during the production month of May 2025, 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 July 21, 2025

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:	July 21, 2025	By:	/S/ NANCY WILLIS
			Nancy Willis Director of Royalty Trust Services

FAQ

Why did San Juan Basin Royalty Trust (SJT) suspend its July 2025 distribution?

Because production costs for May 2025 exceeded revenues and natural-gas prices remained low, leaving no net proceeds to distribute.

What production month affected the July 2025 payout decision?

The Trust cited May 2025 production results as the period in which costs exceeded revenues.

When was the press release announcing the suspension issued?

The press release (Exhibit 99.1) was dated July 21, 2025.

Does the 8-K indicate any other material transactions or changes?

No. The filing only addresses the absence of a July distribution; no acquisitions, governance changes, or financing events were disclosed.

Is San Juan Basin Royalty Trust classified as an emerging growth company?

No. The filing’s checkbox for emerging growth company status was not selected.