UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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, 2018
San Juan Basin Royalty Trust
(Exact name of registrant as specified in its charter)
Texas | 1-8032 | 75-6279898 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Compass Bank, Trust Department
300 W. 7th Street, Suite B
Fort Worth, Texas 76102
(Address of principal executive offices, including zip code)
(Registrants 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 (see General Instruction A.2. below):
☐ | 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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 19, 2018, the San Juan Basin Royalty Trust (the Trust) issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing a monthly cash distribution to the holders of its units of beneficial interest of $3,518,388 or $0.075488 per unit, based primarily upon production during the month of August 2018, subject to certain adjustments for prior months, and a reversal for prior capital expenditures (including interest) erroneously charged to the Trust for the month of July 2018. The distribution is payable November 15, 2018, to unit holders of record as of October 31, 2018.
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.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are filed in accordance with the provisions of Item 601 of Regulation S-K:
Exhibit |
Description | |
99.1 | Press Release, dated October 19, 2018. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
COMPASS BANK, AS TRUSTEE FOR THE SAN JUAN BASIN ROYALTY TRUST (Registrant) | ||||||
Date: October 19, 2018 | By: | /s/ Joshua R. Peterson | ||||
Joshua R. Peterson | ||||||
Senior Vice President and Trust Officer |
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Exhibit 99.1
San Juan Basin Royalty Trust
News Release |
San Juan Basin Royalty Trust
Declares October Cash Distribution
FORT WORTH, Texas, October 19, 2018 Compass Bank, as Trustee of the San Juan Basin Royalty Trust (the Trust) (NYSE:SJT), today declared a monthly cash distribution to the holders of its Units of beneficial interest (the Unit Holders) of $3,518,388 or $0.075488 per Unit, based primarily upon production during the month of August 2018, subject to certain adjustments for prior months, and a reversal for prior capital expenditures (including interest) erroneously charged to the Trust for the month of July 2018. The distribution is payable November 15, 2018, to Unit Holders of record as of October 31, 2018.
Based upon information provided to the Trust by the operator of the Trusts subject interests, Hilcorp San Juan L.P. (Hilcorp), gas production for the Subject Interests totaled 2,530,624 Mcf (2,811,804 MMBtu) for August 2018, as compared to 3,038,035 Mcf (3,375,595 MMBtu) for July 2018. Dividing revenues by production volume yielded an average gas price for August 2018 of $2.25 per Mcf ($2.02 per MMBtu), as compared to an average gas price for July 2018 of $1.77 per Mcf ($1.59 MMBtu).
Hilcorps royalty payment calculation includes a $2.37 million reversal of capital expenditures for certain well recompletions that were erroneously charged to the Trust, plus interest. The Trust will replenish its cash reserves by $97,909, which is the amount utilized last month to pay the Trusts administrative expenses.
Hilcorp has advised the Trust that for the reporting month of August 2018, oil and gas production was accrued based on actual production volumes, including an estimate of $169,000 for non-operated revenue. For the month ended August 2018, Hilcorp reported to the Trust lease operating expenses and property taxes of $2,549,734 and severance taxes of $799,051. There were no capital costs charged to the Trust for the reporting month of August. Hilcorp is reviewing its Revised 2018 Capital Expenditure Plan that the Trust disclosed on September 20, 2018, to determine how much of the disclosed future capital expenses would remain attributable to the Trust. The Trust intends to continue to disclose promptly such information to its Unit Holders following receipt and verification.
Contact: | San Juan Basin Royalty Trust |
Compass Bank, Trustee |
300 West Seventh St., Suite B, Fort Worth, Texas 76102 |
website: www.sjbrt.com e-mail: sjt.us@bbva.com |
Joshua R. Peterson, Senior Vice President & Trust Officer |
Kaye Wilke, Investor Relations, toll-free: (866) 809-4553 |
Except for historical information contained in this news release, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements generally are accompanied by words such as expects, estimates, anticipates, should, plan, intend, or other words that convey the uncertainty of future events or outcomes. Forward-looking statements and the business prospects of San Juan Basin Royalty Trust are subject to a number of risks and uncertainties that may cause actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, certain information provided to the Trust by Hilcorp, volatility of oil and gas prices, governmental regulation or action, litigation, and uncertainties about estimates of reserves. These and other risks are described in the Trusts reports and other filings with the Securities and Exchange Commission.
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