SAN JUAN BASIN ROYALTY TRUST 8K

San Juan Basin Royalty Trust reported it will pay no June 2026 cash distribution and will continue applying all net proceeds to a growing excess production cost deficit, reserve replenishment, and line-of-credit repayment before any future unitholder payouts resume.

On June 18, 2026, Argent Trust Company, as trustee of the San Juan Basin Royalty Trust, announced that no June 2026 cash distribution will be made to unitholders because cumulative excess production costs tied to Hilcorp San Juan L.P.’s drilling of two new horizontal wells in 2024 and ongoing low natural gas prices have created a deficit of approximately $9.26 million gross ($6.94 million net to the Trust), which continues to grow and must be fully recovered before any royalty income can be distributed. For April 2026 production, revenues of about $3.0 million were insufficient to cover production costs of roughly $3.8 million (excluding excess costs), so Hilcorp will continue applying all net proceeds each month toward the excess cost balance, after which the Trust must also replenish a $2 million reserve and repay principal and interest on its Texas Bank line of credit (now drawn to $944,470) before resuming distributions. The Trust has minimal remaining cash reserves of $3,891, is using its credit facility to fund administrative expenses, and continues to scrutinize Hilcorp’s accounting, pricing, and charges through an ongoing comprehensive audit by outside consultants and counsel.

Filing Facts

CIK

319655

Ticker

-

Form

8K

Source Type

sec

Accession

0001193125-26-275535

Alert Tier

7