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): May 18, 2015
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 May 18, 2015, 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 make a monthly cash distribution to the holders of its units of beneficial interest for the month of May 2015. Normally a distribution would be made in May based principally upon production during the month of March 2015. However, due primarily to the low natural gas pricing and higher capital costs during the month of March, cash attributable to the royalties will be utilized to pay administrative expenses and to increase cash reserves. No cash distributions will be distributed by the Trust until future net proceeds are sufficient to pay then-current Trust liabilities and replenish cash reserves.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits. |
| 99.1 | Press release, dated May 18, 2015. |
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: May 18, 2015
(The Trust has no directors or executive officers.)
Exhibit 99.1
San Juan Basin Royalty Trust
News Release
Compass Bank, Trustee
300 W. Seventh Street, Suite B
Fort Worth, Texas 76102
San Juan Basin Royalty Trust
No Cash Distribution for May
FORT WORTH, Texas, May 18, 2015 — 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 May 2015. Normally, a distribution would be made in May based principally upon production during the month of March 2015. However, primarily due to low natural gas pricing and higher capital costs during the month of March, the cash attributable to the Royalties is $612,141. Those funds will be utilized to pay Trust administrative expenses of $164,889 and to increase cash reserves. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay then-current Trust liabilities and to replenish and maintain cash reserves in the amount of at least $500,000. No assurances can be given as to the timing or amount of any such future distributions
Gas production for the properties from which the royalty was carved (the “Underlying Properties”) totaled approximately 2,485,829 Mcf (2,732,418 MMBtu). Dividing revenues by production volume yielded an average gas price for March 2015 of $2.44 per Mcf ($2.22 per MMBtu) as compared to $2.47 per Mcf ($2.25 per MMBtu) for February 2015.
The average monthly gas price Burlington reports to the Trust is a calculated price. It is determined by dividing gross monthly revenue by production volume, therefore, it does not represent an average of actual sales prices. 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 $2,120,135. Lease operating expenses were $2,655,320 and taxes were $672,617.
| 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.us@bbva.com | |||