San Juan Basin Royalty Trust Declares December Cash Distribution
December 18 2017 - 9:00AM
Business Wire
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 of
$3,415,851.12 or $0.073288 per unit, based principally upon
estimated production during the month
of October 2017. The distribution is payable January 16, 2018, to
unit holders of record as of December 29, 2017.
The sale of San Juan Basin assets, including the oil and gas
interests from which the Trust’s royalty interest was carved
(“Subject Interests”), from Burlington Resources Oil & Gas
Company LP (“Burlington”) to Hilcorp San Juan L.P. (“Hilcorp”)
closed on July 31, 2017. Due to the transition from Burlington,
Hilcorp informed the Trust that Hilcorp does not yet have all of
the revenue decks for October 2017 installed, and therefore does
not have the appropriate detail to provide actual revenue numbers
for the December 2017 distribution.
Therefore, Hilcorp estimated the December 2017 distribution
based on the revenue distribution detail for the July 2017
production month (September distribution month) previously provided
by Burlington and rounded to the nearest thousand. The December
2017 declaration of cash distribution includes an additional $1.0
million in estimated gross revenue based on Hilcorp’s knowledge
that production volumes in October 2017 were in line with
production volumes during the month of September 2017. Severance
taxes continue to be estimated.
The December 2017 declaration of cash distribution includes
actual expenses for the month of October 2017 along with a true-up
of the actual versus previously estimated expense numbers for
August 2017.
Hilcorp has also informed the Trust that Hilcorp may need to use
estimated revenue and severance tax numbers to calculate
distributions for subsequent months. Once Hilcorp has all of the
revenue decks finalized, Hilcorp will reconcile the actual revenue
numbers versus the estimated numbers and true-up any distributions,
as needed.
Estimated gas production for the Subject Interests totaled
2,155,000 Mcf (2,394,444 MMBtu) for October 2017. Dividing revenues
by production volume yielded an average estimated gas price for
October 2017 of $2.60 per Mcf ($2.34 per MMBtu) which was identical
to August and September 2017.
The average monthly gas price Hilcorp reports to the Trust is a
calculated price. It is determined by dividing gross monthly
revenue by production volume, and 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.
For the month ended October 2017, there was a $3,754 credit for
capital costs and a $34,438 credit for property taxes. Lease
operating expenses were $1,355,011. Estimated severance taxes were
$594,800.
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version on businesswire.com: http://www.businesswire.com/news/home/20171218005229/en/
San Juan Basin Royalty TrustCompass Bank, TrusteeJoshua R.
Peterson, Vice President & Senior Trust OfficerKaye Wilke,
Investor Relations, toll-free: (866)
809-4553sjt.us@bbva.comwww.sjbrt.com
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