San Juan Basin Royalty Trust Declares No Cash Distribution for March 2025
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San Juan Basin Royalty Trust (SJT) will not declare a monthly cash distribution in March 2025 because net proceeds of $4,153,693 will be applied to excess production costs. The trust's cumulative excess production costs are approximately $21,739,947 gross. Hilcorp, the operator, reported $10,152,016 in total revenue for January 2025, with gas prices increasing to $3.74 per Mcf. The trust plans to replenish cash reserves and is evaluating credit options to cover administrative expenses.
March 21, 2025 | 1:30 pm
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No cash distribution for March 2025 due to ongoing excess production costs. Trust's net proceeds being applied to reduce $21.7M cost balance.
Suspension of distribution directly impacts SJT shareholders, signaling ongoing financial challenges from high production costs and capital expenditures. The lack of royalty income and need to repay excess costs suggests potential near-term stock price pressure.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100