San Juan Basin Royalty Trust Files Q3 2024 10-Q

TL;DR

SJT 10-Q filed for Q3 2024. Financials and ops details out.

AI Summary

San Juan Basin Royalty Trust filed its 10-Q for the period ending September 30, 2024. The filing details the trust's financial performance and operational status. Key financial information and operational metrics for the quarter are presented.

Why It Matters

This filing provides investors with crucial financial and operational data for the third quarter of 2024, enabling them to assess the trust's performance and make informed investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks disclosed.

Key Players & Entities

• SAN JUAN BASIN ROYALTY TRUST (company) — Registrant
• September 30, 2024 (date) — Reporting period end date
• 20241114 (date) — Filing date
• Argent Trust Company (company) — Trustee
• 001-08032 (other) — Commission File Number

FAQ

Key Financial Figures

• $130,597,911 — ies (net of accumulated amortization of $130,597,911 and $130,522,279 at September 30, 2024
• $130,522,279 — ulated amortization of $130,597,911 and $130,522,279 at September 30, 2024 and December 31,
• $1.0 million — ch of two successive years is less than $1.0 million per year or (ii) the Unit Holders of at
• $133,275,528 — nitial carrying value of the Royalty of $133,275,528 represented Southland’s historic
• $1,037,093 — Hilcorp’s payment of the sum of $1,037,093, which included the accumulated interes
• $36.0 million — ditures for the Subject Interests to be $36.0 million. This plan was updated on March 6, 2024
• $2.0 m — 2024, with a reduction of approximately $2.0 million, bringing the total estimate of 2
• $34.0 million — stimate of 2024 capital expenditures to $34.0 million. Hilcorp informed the Trust that its 20
• $25.0 million — s 2024 Plan will allocate approximately $25.0 million of the 2024 Plan’s budget toward
• $8.0 million — in the Mancos formation. Approximately $8.0 million of the 2024 Plan’s budget will b
• $10,294,620 — uction Costs exceeded Gross Proceeds by $10,294,620 ($7,720,965 net to the Trust) and $11,5
• $7,720,965 — exceeded Gross Proceeds by $10,294,620 ($7,720,965 net to the Trust) and $11,517,368 ($8,6
• $11,517,368 — 4,620 ($7,720,965 net to the Trust) and $11,517,368 ($8,638,026 net to the Trust), respecti
• $8,638,026 — ,965 net to the Trust) and $11,517,368 ($8,638,026 net to the Trust), respectively. The cu

Filing Documents

• sjt_10q_93024.htm (10-Q) — 486KB
• sjt-ex31.htm (EX-31) — 13KB
• sjt-ex32.htm (EX-32) — 12KB
• 0000950170-24-126805.txt ( ) — 513KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements 1 Item 2 Trustee’s Discussion and Analysis of Financial Condition and Results of Operations 8 Item 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 16 Item 4

Controls and Procedures

Controls and Procedures 16

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 17 Item 1A

Risk Factors

Risk Factors 17 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 17 Item 3 Defaults Upon Senior Securities 17 Item 4 Mine Safety Disclosures 17 Item 5 Other Information 17 Item 6 Exhibits 18 SIGNATURE Table of Contents SAN JUAN BASIN ROYALTY TRUST PA RT I FINANCIAL INFORMATION

Fin ancial Statements

Item 1. Fin ancial Statements. CONDENSED STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS September 30, December 31, 2024 2023 (Unaudited) (Audited) ASSETS Cash and short-term investments $ 1,099,699 $ 1,574,347 Net overriding royalty interest in producing oil and gas properties (net of accumulated amortization of $130,597,911 and $130,522,279 at September 30, 2024 and December 31, 2023, respectively) 2,677,617 2,753,249 $ 3,777,316 $ 4,327,596 LIABILITIES AND TRUST CORPUS Distribution payable to Unit Holders $ — $ 574,347 Cash reserves (1) 1,099,699 1,000,000 Trust corpus – 46,608,796 Units of beneficial interest authorized and outstanding 2,677,617 2,753,249 $ 3,777,316 $ 4,327,596 (1) The Trustee is authorized to determine the amount of cash reserves it retains from distributions received by the Trust to be used in the event cash on hand is not sufficient to pay ordinary course general and administrative expenses and to provide for future liabilities of the Trust. These Condensed Financial Statements should be read in conjunction with the accompanying

Notes to Financial Statements included herein

Notes to Financial Statements included herein. 1 Table of Contents CONDENSED STATEMENTS OF DISTRIBUTABLE INCOME (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Royalty income $ — $ 4,320,039 $ 6,945,974 $ 49,256,075 Interest income 18,463 19,773 73,331 119,075 Total income 18,463 4,339,812 7,019,305 49,375,150 General and administrative expenses (386,507 ) (392,762 ) (2,161,377 ) (1,369,320 ) Cash reserves (withheld) used for Trust expenses 368,044 — 300,301 — Distributable income $ — $ 3,947,050 $ 5,158,229 $ 48,005,830 Distributable income per Unit (46,608,796 Units) $ — $ 0.084685 $ 0.110670 $ 1.029974 These Condensed Financial Statements should be read in conjunction with the accompanying

Notes to Financial Statements included herein

Notes to Financial Statements included herein. 2 Table of Contents CONDENSED STATEMENTS OF CHANGES IN TRUST CORPUS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Trust corpus, beginning of period $ 2,677,617 $ 2,812,651 $ 2,753,249 $ 2,968,707 Amortization of net overriding royalty interest — (28,873 ) (75,632 ) (184,929 ) Distributable income — 3,947,050 5,158,229 48,005,830 Distributions declared — (3,947,050 ) (5,158,229 ) (48,005,830 ) Trust corpus, end of period $ 2,677,617 $ 2,783,778 $ 2,677,617 $ 2,783,778 Distributions declared (per Unit) $ — $ 0.084685 $ 0.110670 $ 1.029974 These Condensed Financial Statements should be read in conjunction with the accompanying

Notes to Financial Statements included herein

Notes to Financial Statements included herein. 3 Table of Contents

Notes to Financial Statements

Notes to Financial Statements 1. Trust Organization and Administration The San Juan Basin Royalty Trust (the “Trust”) was established on November 1, 1980 when Southland Royalty Company (“Southland”) conveyed to the Trust a 75% net overriding royalty interest (the “Royalty”) that burdens certain oil and gas interests (the “Subject Interests”) in properties owned by Southland and located in the San Juan Basin of northwestern New Mexico. Subsequent to the conveyance of the Royalty, through a series of sales, assignments and mergers, Southland’s successor became Hilcorp San Juan L.P. (“Hilcorp”), which acquired the Subject Interests from Burlington Resources Oil & Gas Company LP (“Burlington”) on July 31, 2017. Through an acquisition completed on March 24, 2006, Compass Bank succeeded TexasBank as trustee of the Trust. On September 7, 2007, Compass Bancshares, Inc. was acquired by Banco Bilbao Vizcaya Argentaria, S.A. (“BBVA”) and became a wholly-owned subsidiary of BBVA. Effective June 10, 2019, Compass Bank changed its name to BBVA USA. On June 1, 2021, The PNC Financial Services Group, Inc. (“PNC”) announced that it had completed the purchase of BBVA USA Bancshares, Inc., a financial holding company, including its U.S. banking subsidiary, BBVA USA, an Alabama-chartered bank and trustee of the Trust (“BBVA USA”). On October 8, 2021, PNC Bank, an indirect wholly-owned subsidiary of PNC, succeeded BBVA USA as the trustee of the Trust following BBVA USA’s merger with and into PNC Bank. On February 15, 2024, Argent Trust Company succeeded PNC Bank as the trustee of the Trust following the resignation of PNC Bank. The defined term “Trustee” as used herein shall refer to PNC Bank for periods from October 8, 2021 through February 14, 2024, and shall refer to Argent Trust Company for periods on and after February 15, 2

Trustee’s Discu ssion and Analysis of Financial Condition and Results of Operations. Overview

Item 2. Trustee’s Discu ssion and Analysis of Financial Condition and Results of Operations. Overview Introduction The following discussion and analysis is intended to help the reader understand the Trust’s financial condition, results of operations, liquidity and capital resources. This discussion and analysis

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