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): March 18, 2013
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 March 18, 2013, 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, that it will not declare a monthly cash distribution to the holders of its Units of beneficial interest for the month of March 2013. Normally, a distribution would be made in March based principally upon production during the month of January 2013. However, this month revenues were less than expenses by approximately $1.2 million, principally because of extraordinary capital costs in the amount of over $5.7 million, and also due to winter weather conditions that resulted in lower production.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits. |
| 99.1 | Press release, dated March 18, 2013. |
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: March 18, 2013
(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 No Cash Distribution for March
FORT WORTH, Texas, March 18, 2013 — Compass Bank, as Trustee of the San Juan Basin Royalty Trust (NYSE:SJT), today reported it will not declare a monthly cash distribution to the holders of its Units of beneficial interest for the month of March 2013. Normally, a distribution would be made in March based principally upon production during the month of January 2013. However, this month revenues were less than expenses by approximately $1.2 million, principally because of extraordinary capital costs in the amount of over $5.7 million, and also due to winter weather conditions that resulted in lower production. The principal operator of the Underlying Properties reported that the increase in capital expenditures was attributable to the costs for five new wells in which the Trust’s royalty interest is relatively high.
Gas production for the properties from which the royalty was carved (the “Underlying Properties”) totaled approximately 2,200,534 Mcf (2,425,000 MMBtu). Production volumes were lower in January due to harsh winter weather and freezing temperatures. Freezing temperatures can cause wells to shut in, and bad weather conditions make it difficult to access wells to bring them back on line. Dividing revenues by production volume yielded an average gas price for January 2013 of $3.50 per Mcf ($3.17 per MMBtu) as compared to $3.74 per Mcf ($3.42 per MMBtu) for December 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 $5,736,207. Lease operating expenses were $2,975,210 and taxes were $948,756.
| 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 | |||