UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 19, 2012
San Juan Basin Royalty Trust
(Exact name of registrant as specified in the
Amended and Restated San Juan Basin Royalty Trust Indenture)
| Texas | 1-8032 | 75-6279898 | ||
| (State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer Identification Number) | ||
| Compass Bank, Trust Department 300 W. 7th Street, Suite B Fort Worth, Texas |
76102 | |||
| (Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: (866) 809-4553
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition. |
On October 19, 2012, the San Juan Basin Royalty Trust (the “Trust”) issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing, among other things, a monthly cash distribution to the holders of its units of beneficial interest of $2,544,504.15 or $0.054593 per unit, based principally upon production during the month of August 2012.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
99.1 Press release, dated October 19, 2012.
In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COMPASS BANK, AS TRUSTEE FOR THE SAN JUAN BASIN ROYALTY TRUST (Registrant) | ||
| By: | /s/ Lee Ann Anderson | |
| Lee Ann Anderson Vice President and Senior Trust Officer | ||
Date: October 19, 2012
(The Trust has no directors or executive officers.)
Exhibit 99.1
San Juan Basin Royalty Trust
News Release
Compass Bank, Trustee
300 W. 7th Street, Suite B
Fort Worth, Texas 76102
San Juan Basin Royalty Trust
Declares Monthly Cash Distribution
FORT WORTH, Texas, October 19, 2012 — Compass Bank, as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), today declared a monthly cash distribution to the holders of its units of beneficial interest of $2,544,504.15 or $0.054593 per unit, based principally upon production during the month of August 2012. The distribution is payable November 15, 2012, to unit holders of record as of October 31, 2012.
The distribution for October was reduced by $767,122 as a result of an adjustment of lease operating expense and capital costs that were understated in the June 2012 distribution due to the miscalculation by Burlington Resources Oil & Gas Company LP (“Burlington”). The miscalculation resulted in overpayments to the Trust for April through July 2012. As previously disclosed, and as permitted under the terms of the Royalty conveyance document, Burlington intends to also adjust lease operating expense and capital costs by approximately $786,377 in November 2012 to recover the overpayment.
Gas production for the properties from which the royalty was carved (the “Underlying Properties”) totaled approximately 2,202,291 Mcf (2,482,014 MMBtu). Dividing revenues by production volume yielded an average gas price for August 2012 of $4.14 per Mcf ($3.67 per MMBtu) as compared to $2.21 per Mcf ($2.05 per MMBtu) for July 2012. However, Burlington reports that production volumes for July 2012 were overstated. The offset for the overstatement has resulted in lower reported volumes for August 2012. When revenues are divided by those lower reported volumes to determine the average gas price for the month, the result is a somewhat inflated $4.14 per Mcf for August. Had the overstatement and resulting setoff not occurred, the average price would have been $2.72 per Mcf for July and $3.26 per Mcf for August 2012.
The average gas price may vary from the posted index price for the San Juan Basin. The index price is a gross sales price, and the revenues used in the calculation of average gas prices are net of transportation, processing and gathering costs. Furthermore, the distribution to the Trust in any given month may include significant volume adjustments for sales in prior months that reflect pricing for those prior months. Capital costs for the month were $1,590,517. Lease operating expenses were $3,464,718 and taxes were $979,998.
| Contact: | San Juan Basin Royalty Trust |
| Compass Bank |
| Lee Ann Anderson, Vice President & Senior Trust Officer |
| Kaye Wilke, Investor Relations, toll-free: (866) 809-4553 |
| Fax: | (817) 735-0936 |
| Website: | www.sjbrt.com |
| e-mail: | sjt@compassbank.com |