San Juan Basin Royalty Trust(NYSE) SJT

San Juan Basin Royalty Trust collects income from oil and gas production. It pays this income to investors as monthly distributions. The trust helps investors access energy revenues without owning or operating wells.

Royalty Revenue, No Drilling Required

• Royalty Income (75% of net proceeds): Receives a share of oil and natural gas sales from properties in New Mexico; almost all revenue comes from this source, with minor amounts from interest income.
• Monthly Distributions: Passes net proceeds to investors after expenses and reserves; no direct product or service sales.
• Non-Operating Structure: Does not drill or manage wells; relies on third-party operator Hilcorp for production and reporting.
• Fixed Asset Base: Cannot acquire new properties or expand beyond original oil and gas interests.

Growth and Expansion: The Slow Lane

• Formed in 1980 as a royalty trust; no acquisitions or asset expansions since inception.
• Relies on Hilcorp for operational improvements and capital projects on existing wells.
• Established a $2 million line of credit in May 2025 to cover administrative costs during periods of low income.

What Makes San Juan Basin Stand Out?

The trust offers pure exposure to oil and gas royalty income, without operational risk. Its structure prevents asset growth or diversification, focusing only on existing properties. Investors receive monthly payments when production income exceeds costs and reserves.

Five Things You Need to Know

• Total income was $2,985 in Q2 2025, down 99.8% year-on-year.
• No distributions paid from May 2024 to June 2025 due to excess costs.
• Gross proceeds from oil and gas sales rose 72.3% in Q2 2025.
• Cash reserves fell to $32,968 by June 2025; $162,783 drawn on credit line.

Bottom Line

San Juan Basin provides a simple, pass-through model for oil and gas royalties. Its fixed asset base and lack of diversification mean distributions depend on production costs and commodity prices.