San Juan Basin Royalty Trust stock gets no October payout
Published on 11/06/2026 at 00:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSCosts and Liquidity Keep Payouts Suspended
- The trust will retain future net proceeds until accumulated production costs, reserves and credit-line obligations are addressed.
- August revenue from the subject interests exceeded production costs only narrowly, leaving limited room to reduce the deficit.
- The suspension keeps income prospects dependent on natural gas prices, production costs and the trust's liquidity position.
On October 20, 2026, Argent Trust Company, trustee of San Juan Basin Royalty Trust, said the trust would make no cash distribution for October. The announcement, published by PR Newswire, cited accumulated excess production costs and continued low natural gas prices.
Deficit Still Absorbs Royalty Income
The cumulative excess production-cost balance was approximately USD 12.42 million gross, or USD 9.32 million net to the trust. The net deficit declined by about USD 97,836 from the previous reporting period, but Hilcorp will continue applying the trust's net proceeds to the balance.
No royalty income will reach unitholders until the excess costs are repaid. Future proceeds must also replenish a USD 2 million reserve and repay principal and interest on the trust's line of credit before distributions can resume.
August Operations Offer Limited Relief
Hilcorp reported USD 4.87 million of total revenue from the subject interests for August 2026, including USD 4.69 million from gas and USD 180,537 from oil. Production costs excluding the accumulated excess-cost balance totaled USD 4.74 million, comprising lease operating expenses, severance taxes and capital costs.
The average August gas price was USD 2.28 per Mcf, up from USD 2.01 per Mcf in July. The trust also reported an October administrative expense of USD 80,118 and said an USD 80,101 credit-line draw would lift outstanding principal to USD 1.16 million.
Royalty Trust Structure Limits Growth
San Juan Basin Royalty Trust was established in 1980 and holds a 75 percent net overriding royalty interest in oil and gas leasehold and royalty interests in the San Juan Basin of northwestern New Mexico. Argent Trust Company collects monthly net proceeds and distributes them to unitholders after expenses and required reserves. Hilcorp San Juan operates most of the underlying interests, while the trust itself cannot acquire additional properties under its indenture.
San Juan Basin Royalty Trust at a glance
- Company: San Juan Basin Royalty Trust
- ISIN: US7982411057
- Ticker: SJT
- Home exchange: New York Stock Exchange
- Royalty interest: 75 percent net overriding royalty interest in the San Juan Basin
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