The trust's cash trap has deepened with a sixth consecutive month of no distributions. Traders should monitor gas prices and monthly updates for signs of deficit reduction; a recovery is unlikely until natural gas prices rise materially above current levels.
Price Chart
Executive Summary
San Juan Basin Royalty Trust will not declare a monthly cash distribution for May 2026, citing continued low natural gas pricing and a growing excess production cost deficit. The cumulative deficit increased to $6.36M net, and all net proceeds will be applied to repay it before any distributions resume.
Key Facts
- No monthly cash distribution declared for May 2026.
- Cumulative excess production cost deficit rose to $8,484,149 gross ($6,363,112 net), up $1,389,243 net from last month.
- Average gas price fell to $1.20/Mcf from $2.70/Mcf in February 2026.
- Line of credit principal reached $895,689; cash reserves remain only $3,891.
Financial Impact
Deferred cash distributions, deficit increase of $1.39M net, and line-of-credit draw of $23,435 reducing cash reserves further.
Risk Factors
- Prolonged low natural gas prices prolonging the distribution suspension.
- Further increases in production costs or capital expenditures by operator Hilcorp.
- Line-of-credit balance continuing to rise, increasing interest burden.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-228303 |
| Document: sjt-ex99_1.htm | 0001193125-26-228303 |
| Document: 0001193125-26-228303-index-headers.html | 0001193125-26-228303 |
| Document: 0001193125-26-228303-index.html | 0001193125-26-228303 |
| Document: 0001193125-26-228303.txt | 0001193125-26-228303 |
| 8-K Data (Synthetic) | 0001193125-26-228303 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 6d ago | 8-K | $3.39 | awaiting T+5 | — | $3.37 (+0.59%) |
Aug 21, 2026 9w ago | 8-K | $2.72 $2.71 | ▲ +0.37% | ▲ +0.84% | $3.37 (−23.90%) |
Jul 21, 2026 13w ago | 8-K | $2.44 $2.54 | ▼ −4.10% | ▼ −5.33% | $3.37 (−38.11%) |
Jun 18, 2026 18w ago | 8-K | $3.11 $2.93 | ▲ +5.79% | ▲ +4.12% | $3.37 (−8.36%) |
May 18, 2026 23w ago | 8-K | $4.28 $4.12 | ▲ +3.74% | ▲ +5.36% | $3.37 (+21.26%) |
Apr 20, 2026 27w ago | 8-K | $4.54 $4.22 | ▲ +7.05% | ▲ +7.96% | $3.37 (+25.77%) |
US Market Status
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