The distribution suspension is now entrenched with no clear timeline for resumption — the trust is effectively insolvent until natural gas prices recover significantly or Hilcorp reduces costs. Monitor monthly production reports for signs of cost compression or gas price improvement above breakeven. The growing line-of-credit draw signals mounting financial strain; further draws could raise solvency questions if gas prices stay below $2/Mcf.
Price Chart
Executive Summary
San Juan Basin Royalty Trust declared no cash distribution for June 2026, marking the second consecutive month without a payout, as excess production costs grew to $6.9M net and natural gas prices remained low at $1.28/Mcf. The trust will not resume distributions until the cumulative deficit is repaid, a $2M reserve is replenished, and its $944K line of credit is cleared, extending an already-dire cash flow situation.
Key Facts
- No monthly cash distribution declared for June 2026
- Cumulative excess production costs: $9.26M gross ($6.94M net to Trust), up $775K gross ($581K net) from prior month
- April 2026 production revenue of $3.02M was fully eclipsed by $3.80M in production costs (excluding excess costs)
- Line of credit drawn by $48.8K to pay admin expenses, bringing outstanding to $944.5K
- Average gas price: $1.28/Mcf, up slightly from $1.20/Mcf in March but still deeply unprofitable
- Cash reserves virtually depleted at $3.9K, unchanged from prior month
Financial Impact
Distribution suspension continues indefinitely; cumulative net deficit of $6.94M must be repaid before any distributions resume, with an additional $2.0M reserve and $944.5K line of credit required. Monthly net cash flow is negative by ~$775K gross.
Risk Factors
- Continued low natural gas prices extending distribution suspension indefinitely
- Further increases in cumulative excess production costs as production costs outpace revenue
- Line of credit approaching maximum capacity (currently $944.5K, up from $895.7K implied last month)
- Potential for trust liquidation or restructuring if deficit becomes unrecoverable
- No catalyst in sight: two new horizontal wells drilled in 2024 remain the root cause of excess costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-275535 |
| Document: sjt-ex99_1.htm | 0001193125-26-275535 |
| Document: 0001193125-26-275535-index-headers.html | 0001193125-26-275535 |
| Document: 0001193125-26-275535-index.html | 0001193125-26-275535 |
| Document: 0001193125-26-275535.txt | 0001193125-26-275535 |
| 8-K Data (Synthetic) | 0001193125-26-275535 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 7d ago | 8-K | $3.39 | awaiting T+5 | — | $3.35 (+1.18%) |
Aug 21, 2026 9w ago | 8-K | $2.72 $2.71 | ▲ +0.37% | ▲ +0.84% | $3.35 (−23.16%) |
Jul 21, 2026 14w ago | 8-K | $2.44 $2.54 | ▼ −4.10% | ▼ −5.33% | $3.35 (−37.30%) |
Jun 18, 2026 18w ago | 8-K | $3.11 $2.93 | ▲ +5.79% | ▲ +4.12% | $3.35 (−7.72%) |
May 18, 2026 23w ago | 8-K | $4.28 $4.12 | ▲ +3.74% | ▲ +5.36% | $3.35 (+21.73%) |
Apr 20, 2026 27w ago | 8-K | $4.54 $4.22 | ▲ +7.05% | ▲ +7.96% | $3.35 (+26.21%) |
US Market Status
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