Expect continued distribution suspensions and potential further drawdowns on the line of credit. Monitor natural gas prices and Hilcorp's cost reporting closely—any sustained improvement above $3.00/Mcf and cost discipline may allow recovery, but near-term outlook remains bleak.
Price Chart
Executive Summary
San Juan Basin Royalty Trust (SJT) announced it will not declare a cash distribution for April 2026 due to a growing deficit from excess production costs ($6.6M gross) and persistently low natural gas prices. This marks another month of zero distributions, extending a trend of financial strain driven by Hilcorp's cost overruns and weak commodity pricing.
Key Financial Metrics
Key Facts
- No cash distribution declared for April 2026 due to excess production costs and low natural gas prices
- Cumulative excess production costs now total $6,631,825 gross ($4,973,869 net to the Trust), up $445,006 gross from prior month
- Average natural gas price dropped to $2.70 per Mcf in February 2026, down from $2.96 in January
- Gas volumes declined to 1.89 million Mcf in February from 2.10 million Mcf in January
- Trust cash reserves reduced to $9,367 after $4,890 used to pay interest on line of credit
- Distributions suspended until excess costs are repaid, $2M reserve replenished, and line of credit repaid
Financial Impact
No cash distributions expected for the foreseeable future; Trust remains in deficit mode with $6.6M gross cost overhang and depleted reserves
Risk Factors
- Prolonged suspension of distributions erodes investor confidence and unitholder value
- Continued low gas prices or rising production costs could deepen the deficit
- Ongoing audit of Hilcorp may reveal additional non-compliance or unrecoverable charges
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-163687 |
| Document: sjt-ex99_1.htm | 0001193125-26-163687 |
| Document: 0001193125-26-163687-index-headers.html | 0001193125-26-163687 |
| Document: 0001193125-26-163687-index.html | 0001193125-26-163687 |
| Document: 0001193125-26-163687.txt | 0001193125-26-163687 |
| 8-K Data (Synthetic) | 0001193125-26-163687 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 7d ago | 8-K | $3.39 | awaiting T+5 | — | $3.30 (+2.65%) |
Aug 21, 2026 9w ago | 8-K | $2.72 $2.71 | ▲ +0.37% | ▲ +0.84% | $3.30 (−21.32%) |
Jul 21, 2026 14w ago | 8-K | $2.44 $2.54 | ▼ −4.10% | ▼ −5.33% | $3.30 (−35.25%) |
Jun 18, 2026 18w ago | 8-K | $3.11 $2.93 | ▲ +5.79% | ▲ +4.12% | $3.30 (−6.11%) |
May 18, 2026 23w ago | 8-K | $4.28 $4.12 | ▲ +3.74% | ▲ +5.36% | $3.30 (+22.90%) |
Apr 20, 2026 27w ago | 8-K | $4.54 $4.22 | ▲ +7.05% | ▲ +7.96% | $3.30 (+27.31%) |
US Market Status
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