San Juan Basin Royalty Trust (NYSE: SJT) announced on September 18, 2026, that it will not declare a monthly cash distribution to its unit holders for September 2026. The decision was made due to excess production costs incurred for the Trust's Subject Interests and continued low natural gas pricing.
The Trust reported a balance of cumulative excess production costs of approximately $12,553,466 gross ($9,415,100 net to the Trust). This represents an increase of $1,122,634 gross ($841,976 net) from the previous month. Hilcorp, the operator, will continue to charge this balance to the Trust's net proceeds each month. Consequently, the Trust will not receive royalty income until the balance is paid in full.
Distributions will not resume until future net proceeds are sufficient to (1) repay the balance of excess production costs, (2) replenish a reserve of $2,000,000, and (3) repay the principal and interest on the Trust's line of credit at Texas Bank.
Financial data for July 2026 indicates total revenue from Subject Interests was $4,293,096, comprising $4,116,328 in gas revenues and $176,768 in oil revenues. Production costs for the month totaled $5,415,731, excluding the excess production costs. Gas volumes for July were 2,046,556 Mcf (2,273,951 MMBtu), yielding an average gas price of $2.01 per Mcf ($1.81 per MMBtu). This is an increase of $0.55 per Mcf compared to the average price in June 2026.
Administrative expenses for September totaled $44,628, which were covered by a draw of $44,606 from the Line of Credit and interest income of $23. The outstanding principal balance on the Line of Credit is currently $1,075,400. The Trust maintains a cash reserve balance of $3,891.
