San Juan Basin Royalty Trust Reports Net Profit of $2.7 Million and Declares Monthly Cash Distribution
Monthly cash distribution of $2,507,212.89 announced based on July 2023 production figures totaling $6,757,633 in revenue.
San Juan Basin Royalty Trust (SJT), administered by PNC Bank, Nation al Association, has declared its monthly cash distribution to Unit Holders of $2,507,212.89 or $0.053793 per Unit. This distribution is based on the Trust's Subject Interests' production during July 2023. The payment is scheduled for October 16, 2023, and will go to Unit Holders recorded as of September 29, 2023. In July 2023, the Subject Interests' owner, Hilcorp San Juan L.P., and operator, Hilcorp Energy Company, reported a net profit of $3,586,018, with $2,689,513 allocated as net royalty income to the Trust.
Net Income/ Loss
For the production month of July 2023, the Trust reported a net profit of $2,689,513, derived from Hilcorp's net profits of $3,586,018 from the Subject Interests.
Revenue
In July 2023, the Subject Interests generated total revenue of $6,757,633, comprising $5,027,418 from gas, $347,424 from oil, and $1,382,791 from other sources. The "other" revenue category includes an audit settlement payment and related interest from a disputed expenses audit spanning 2017 through 2020.
Production and Cost
Hilcorp reported production costs of $3,171,614 for July 2023, encompassing $2,197,901 in lease operating expenses, $784,494 in severance taxes, and $189,219 in capital costs.
Based on Hilcorp's provided data, the gas volume for the Subject Interests in July 2023 was 1,986,071 Mcf (2,206,745 MMBtu), compared to 2,006,122 Mcf (2,229,024 MMBtu) in June 2023. The average gas price for July 2023 was $2.53 per Mcf ($2.28 per MMBtu), up from $1.88 per Mcf ($1.69 per MMBtu) in June 2023.
Ongoing Auditing and Compliance
Production from the Subject Interests continues to adhere to market-sensitive and customary agreements. The Trustee maintains active engagement with Hilcorp concerning its accounting and reporting to the Trust. The Trust's third-party compliance auditors are diligently auditing all payments made by Hilcorp, covering sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. Detailed analysis of Hilcorp's pricing and rates charged is also part of the ongoing auditing process.
As previously disclosed, these revenues and costs, along with all associated expenses, are subject to a comprehensive audit by professional consultants and outside counsel. The goal is to ensure full compliance with all underlying operative Trust agreements and to evaluate potential remedies in case of evidence indicating non-compliance. The Trust remains committed to upholding its fiduciary responsibilities and safeguarding the interests of Unit Holders.
Investors and stakeholders can anticipate continued transparency and diligence in managing the San Juan Basin Royalty Trust's assets as it moves forward in its operations.
