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): June 20, 2023
San Juan Basin Royalty Trust
(Exact name of registrant as specified in its charter)
Texas | 001-08032 | 75-6279898 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
PNC BANK, NATIONAL ASSOCIATION
PNC Asset Management Group
2200 Post Oak Blvd., Floor 18
Houston, TX 77056
(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)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Units | SJT | NYSE |
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 June 20, 2023, 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 (the Unit Holders) of its units of beneficial interest (the Units) of $791,746.81 or $0.016987 per Unit, based primarily upon the reported production of the Trusts subject interests (the Subject Interests) during the month of April 2023, by the owner of the Subject Interests, Hilcorp San Juan L.P. The distribution is payable July 17, 2023, to the Unit Holders of record as of June 30, 2023.
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 No. | Description | |
99.1 | Press Release, dated June 20, 2023. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
PNC BANK, NATIONAL ASSOCIATION, AS TRUSTEE FOR THE SAN JUAN BASIN ROYALTY TRUST (Registrant) | ||||||
Date: June 20, 2023 | By: | /s/ Ross C. Durr, RPL | ||||
Ross C. Durr, RPL | ||||||
Senior Vice President Mineral Interest Director |
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Exhibit 99.1
News Release
San Juan Basin Royalty Trust Declares Cash Distribution for June 2023
HOUSTON, Texas, June 20, 2023 PNC Bank, National Association, as the trustee (the Trustee) of the San Juan Basin Royalty Trust (the Trust) (NYSE: SJT), today declared a monthly cash distribution to the holders (the Unit Holders) of its units of beneficial interest (the Units) of $791,746.81 or $0.016987 per Unit, based primarily upon the reported production of the Trusts subject interests (the Subject Interests) during the month of April 2023. The distribution is payable July 17, 2023, to the Unit Holders of record as of June 30, 2023.
For the production month of April 2023, the owner of the Subject Interests, Hilcorp San Juan L.P. and the operator of the Subject Interests, Hilcorp Energy Company (collectively, Hilcorp), reported to the Trust net profits of $1,187,373 ($890,530 net royalty amount to the Trust).
Hilcorp reported $4,388,489 of total revenue from the Subject Interests for the production month of April 2023, consisting of $4,100,728 of gas revenues and $287,761 of oil revenues. For the Subject Interests, Hilcorp reported $3,201,117 of production costs for the production month of April 2023, consisting of $2,540,847 of lease operating expense, $596,982 of severance taxes and $63,288 of capital costs. The production cost increase was due primarily to capital costs associated with workovers and recompletes.
Based upon the information that Hilcorp provided to the Trust, gas volumes for the Subject Interests for April 2023 totaled 1,885,511 Mcf (2,095,012 MMBtu), as compared to 2,078,429 Mcf (2,309,365 MMBtu) for March 2023. The decline in April production volume was primarily due to third party plant scheduled maintenance outages.
Dividing gas revenues by production volume yielded an average gas price for April 2023 of $2.17 per Mcf ($1.96 per MMBtu), as compared to an average gas price for March 2023 of $3.00 per Mcf ($2.70 per MMBtu).
Production from the Subject Interests continues to be gathered, processed, and sold under market sensitive and customary agreements, as recommended for approval by the Trusts Consultant. The Trustee continues to engage with Hilcorp regarding its ongoing accounting and reporting to the Trust, and the Trusts third-party compliance auditors continue to audit payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. The Trusts auditing process has also included detailed analysis of Hilcorps pricing and rates charged. As previously disclosed in the Trusts filings, these revenues and costs (along with all costs) are the subject of the Trusts ongoing comprehensive audit process by our professional consultants and outside counsel to ensure full compliance with all the underlying operative Trust agreements and evaluating all available potential remedies in the event there is evidence of non-compliance.
Contact: |
San Juan Basin Royalty Trust | |
PNC Bank, National Association | ||
PNC Asset Management Group 2200 Post Oak Blvd., Floor 18 | ||
Houston, TX 77056 website: www.sjbrt.com e-mail: sjt@pnc.com | ||
Ross Durr, RPL, Senior Vice President & Mineral Interest Director | ||
Kaye Wilke, Investor Relations, toll-free: (866) 809-4553 |