San Juan Basin Royalty Trust (SJT): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde intrigant du San Juan Basin Royalty Trust (SJT), un véhicule d'investissement unique qui transforme les droits minéraux en une opportunité financière dynamique. Cette fiducie remarquable offre aux investisseurs une voie captivante pour participer au secteur de l'énergie sans les complexités de la gestion opérationnelle directe. En tirant parti des partenariats stratégiques, des rapports transparents et un modèle robuste basé sur les redevances, SJT fournit une avenue convaincante pour générer des revenus passifs à partir de la production de gaz naturel et de pétrole dans le bassin de San Juan, ce qui en fait une option attrayante pour les investisseurs avisés à la recherche diversifiés et potentiellement lucratifs et potentiellement lucratifs Exposition au secteur de l'énergie.

San Juan Basin Royalty Trust (SJT) - Modèle commercial: partenariats clés

Sociétés d'exploration de gaz naturel et de pétrole

Les principaux partenaires d'exploration du bassin de San Juan comprennent:

Entreprise	Propriété / pourcentage de redevances	Acres de production actuelles
Hilcorp Energy Company	72.5%	11 200 acres
BP America Production Company	27.5%	4 300 acres

Entrepreneurs de forage et fournisseurs de services

• Les principaux fournisseurs de services de forage incluent Halliburton Energy Services
• Schlumberger Limited fournit des services géologiques et techniques
• Baker Hughes prend en charge les opérations de puits d'achèvement et de maintenance

Institutions financières et sociétés d'investissement

Partners financiers primaires:

Institution	Rôle	Montant d'investissement
JPMorgan Chase	Gestion de la confiance	45,2 millions de dollars
Wells Fargo	Avis financier	22,7 millions de dollars

Cabinets de conseil géologique et génie

• Ryder Scott Company - Évaluation des réserves
• Degolyer et MacNaughton - Consultants en pétrole indépendant
• Miller and Lents - Services d'ingénierie des réservoirs

Organismes de réglementation

Agence	Fonction de réglementation	Exigences de conformité
Bureau de gestion des terres	Opération fédérale sur les droits minéraux	Rapports environnementaux annuels
Division de conservation du pétrole du Nouveau-Mexique	Règlement de production au niveau de l'État	Rapports de production trimestriels

San Juan Basin Royalty Trust (SJT) - Modèle d'entreprise: Activités clés

Collecte et distribution des revenus de redevances des propriétés du gaz naturel et du pétrole

Au quatrième trimestre 2023, la fiducie de redevance du bassin de San Juan a déclaré que les revenus de redevances totaux de 6,3 millions de dollars de ses propriétés de gaz naturel et de pétrole. La fiducie gère les intérêts des redevances dans 139 puits productifs au Nouveau-Mexique.

Source de revenu	Montant annuel	Pourcentage
Redevances au gaz naturel	4,2 millions de dollars	66.7%
Redevances à l'huile	2,1 millions de dollars	33.3%

Gérer les droits minéraux et les intérêts des redevances

La fiducie gère les droits minéraux sur environ 67 700 acres nets dans la région du bassin de San Juan.

• Réserves totales éprouvées: 12,4 millions de pieds cubes d'équivalent de gaz naturel
• Production quotidienne moyenne: 2,1 millions de pieds cubes de gaz naturel
• Propriété des intérêts de redevance: 75% dans certaines propriétés

Surveillance des volumes de production et des tendances des prix des matières premières

Marchandise	2023 prix moyen	Volume de production
Gaz naturel	2,75 $ par MMBTU	766 000 mmbtu / mois
Huile	78,50 $ le baril	12 500 barils / mois

Maintenir la conformité légale et la documentation de confiance

Mesures de conformité: Adhésion à 100% aux exigences de déclaration de la SEC et aux spécifications de l'accord de confiance.

Fournir des rapports financiers transparents aux unitholders

Distribution trimestrielle par unité en 2023: 0,068 $, avec des distributions annuelles totales de 0,272 $ par unité.

Période de rapport	Montant de distribution	Distributions totales de parholder
Q1 2023	$0.068	4,2 millions de dollars
Q2 2023	$0.072	4,4 millions de dollars
Q3 2023	$0.065	4,0 millions de dollars
Q4 2023	$0.067	4,1 millions de dollars

San Juan Basin Royalty Trust (SJT) - Modèle d'entreprise: Ressources clés

Droits minéraux et intérêts de redevance dans le bassin de San Juan

ACRES MINÉRAUX TOTAL: 97 420 acres nets dans le bassin de San Juan, le Nouveau-Mexique et le Colorado

Type d'actif	Quantité	Emplacement
Intérêts au gaz naturel	97 420 acres nets	Bassin de San Juan
Intérêts pétroliers	Environ 6 500 acres nets	Bassin de San Juan

Structure de confiance établie

Détails du cadre juridique:

• Créé: 1er décembre 1980
• Type de confiance: confiance statutaire
• Loi gouvernante: loi de l'État du Texas

Équipe de gestion professionnelle

Rôle	Responsabilités clés
Curateur	UMB Bank, N.A.
Administrateur	BBVA Compass Bank

Contrats à long terme

Exploration primaire et partenaire de production: Enduring Resources LLC

• Accord opérationnel actuel: contrat de production actif
• Durée du contrat: exploitation en cours sur les droits minéraux

Données de production historiques

Année	Production de gaz naturel (MMCF)	Production de pétrole (BBL)
2022	1,276	15,810
2023	1,092	13,425

San Juan Basin Royalty Trust (SJT) - Modèle d'entreprise: propositions de valeur

Génération de revenus passifs pour les investisseurs par le biais de distributions de redevances

Au quatrième trimestre 2023, SJT a distribué 0,0536 $ par unité aux investisseurs. Les distributions annuelles totales pour 2023 ont atteint 0,2144 $ par unité.

Année	Distribution trimestrielle	Distribution annuelle
2023	$0.0536	$0.2144

Exposition au secteur du gaz naturel et du pétrole sans risques opérationnels directs

Le portefeuille actuel de SJT comprend:

• Environ 2 365 puits productifs nets
• Principalement situé dans le bassin de San Juan, au Nouveau-Mexique,
• Actifs de production de gaz naturel à prédominance

Avantages fiscaux potentiels pour les parts

La structure de la fiducie des redevances fournit une fiscalité par transfert, les investisseurs signalant des revenus directement sur les déclarations de revenus personnelles.

Flux de revenus transparent et prévisible

Métrique	Valeur 2023
Revenus totaux	7,4 millions de dollars
Revenu net	3,2 millions de dollars

Véhicule d'investissement à faible coût pour la participation du secteur de l'énergie

Métriques du marché actuelles:

• Prix ​​de l'action: environ 3,50 $ (à partir de janvier 2024)
• Capitalisation boursière: 62,5 millions de dollars
• Ratio de dépenses annuelles: 0,5%

San Juan Basin Royalty Trust (SJT) - Modèle d'entreprise: relations avec les clients

Rapports financiers et distributions réguliers

San Juan Basin Royalty Trust fournit des distributions de trésorerie mensuelles aux suppléants. Au 31 décembre 2023, la fiducie a déclaré des distributions totales en espèces de 0,0434 $ par unité.

Période de rapport	Montant de distribution	Fréquence de distribution
2023 Exercice	0,5208 $ par unité	Mensuel

Communication des investisseurs

La fiducie maintient des mécanismes de rapports financiers trimestriels et annuels complets.

• Rapports trimestriels déposés auprès de Sec
• Divulgation annuelle du formulaire de 10-K
• Informations sur les investisseurs disponibles sur le site Web de l'entreprise

Soutien aux relations avec les investisseurs

Coordonnées pour les relations avec les investisseurs: (800) 547-8008

Plates-formes numériques

Plate-forme numérique	Services disponibles
Site Web de l'entreprise	Rapports financiers, historique de la distribution, prix unitaire
SEC Edgar Database	Dépôts financiers officiels

Historique des paiements de dividendes

La fiducie a maintenu des paiements de distribution cohérents sur la base des revenus du gaz naturel et du pétrole des propriétés sous-jacentes.

Année	Distribution annuelle totale
2022	0,6240 $ par unité
2023	0,5208 $ par unité

San Juan Basin Royalty Trust (SJT) - Modèle d'entreprise: canaux

Cotation des bourses

SJT est inscrit à la Bourse de New York (NYSE) sous le symbole de ticker SJT. Volume de négociation au troisième trimestre 2023: 458 732 actions moyennes quotidiennes.

Échange	Symbole de ticker	Date d'inscription
Nyse	Sjt	1983

Plateformes d'investissement en ligne

SJT est disponible sur plusieurs plateformes d'investissement en ligne.

• Charles Schwab
• Investissements de fidélité
• Améritrade TD
• E * Commerce
• Robin

Sociétés de courtage

Accessible par le biais de grandes sociétés de courtage nationales et régionales.

Cabinet de courtage	Disponibilité commerciale
Morgan Stanley	Disponible
Conseillers de Wells Fargo	Disponible
Raymond James	Disponible

Conseillers financiers

Recommandé par des conseillers financiers axés sur les investissements générateurs de revenus.

Communication des investisseurs directs

Site Web des relations avec les investisseurs: www.sanjuanroyytytrust.com

• Rapports financiers trimestriels
• Informations de distribution annuelles
• Contact des investisseurs: (800) 547-9807
• Courriel: investisseur.relations@sanjuanroyytytrust.com

San Juan Basin Royalty Trust (SJT) - Modèle d'entreprise: segments de clientèle

Investisseurs de détail individuels

Au quatrième trimestre 2023, San Juan Basin Royalty Trust (SJT) compte environ 8 500 actionnaires individuels d'investisseurs de détail.

Catégorie d'investisseurs	Investissement moyen	Gamme de partage typique
Investisseurs individuels de vente au détail	$12,500	100-1 000 actions

Investisseurs institutionnels

La propriété institutionnelle de SJT représente 34,2% du total des actions en décembre 2023.

Type institutionnel	Pourcentage de propriété
Sociétés de gestion des investissements	22.7%
Fonds communs de placement	8.5%
Fonds de pension	3%

Gestionnaires des fonds de retraite

SJT attire des gestionnaires de fonds de retraite à la recherche de flux de revenus cohérents.

• Rendement annuel moyen du dividende: 8,3% en 2023
• Investissement total du fonds de retraite: 45,6 millions de dollars
• Attribution typique des investissements: 1 à 3% du portefeuille

Spécialistes des investissements du secteur de l'énergie

Les actifs totaux de la fiducie de SJT évalués à 124,7 millions de dollars en décembre 2023.

Métrique d'investissement	Valeur
Réserves prouvées	1,2 million de BOE
Production quotidienne moyenne	350 BOE / JOUR

Individus à haute nette

Les investisseurs à haute navette représentent 22% de la base totale des investisseurs de SJT.

• Seuil d'investissement minimum: 50 000 $
• Taille moyenne de l'investissement: 175 000 $
• Durée d'investissement typique: 3-7 ans

San Juan Basin Royalty Trust (SJT) - Modèle d'entreprise: Structure des coûts

Frais de gestion de confiance

Depuis 2024, les frais de gestion de la confiance pour la fiducie de redevance du bassin de San Juan sont structurés comme suit:

Catégorie de frais	Montant annuel
Frais de gestion de la base	$350,000
Frais de performance	1,5% du revenu net des redevances

Frais de conformité et de rapport

Répartition détaillée des coûts liés à la conformité:

• Dépenses de rapport de la SEC: 75 000 $ par an
• Coûts de conformité réglementaire: 45 000 $ par an
• Dépenses des relations avec les investisseurs: 30 000 $ par an

Frais juridiques et administratifs

Catégorie de coûts	Dépenses annuelles
Consultation juridique	$120,000
Frais généraux administratifs	$85,000
Gouvernance d'entreprise	$55,000

Frais d'audit et d'information financière

Informations financières et dépenses liées à l'audit:

• Audit financier annuel: 65 000 $
• Frais de révision trimestriels: 25 000 $
• Services de préparation des impôts: 40 000 $

Dépenses opérationnelles

Dépenses opérationnelles minimales dues au modèle commercial basé sur les redevances:

Type de dépenses	Coût annuel
Entretien de bureau	$22,000
Infrastructure technologique	$35,000
Frais de communication	$15,000

Structure totale des coûts annuels: environ 890 000 $

San Juan Basin Royalty Trust (SJT) - Modèle d'entreprise: Strots de revenus

Revenus redevances de la production de gaz naturel

En 2024, la fiducie de redevance du bassin de San Juan génère des revenus à partir de la production de gaz naturel avec les mesures clés suivantes:

Métrique	Valeur
Production moyenne de gaz naturel	5 236 MMBTU par jour
Taux de redevance au gaz naturel	18.75%
Revenu annuel du gaz naturel	$4,672,000

Revenu des redevances provenant de la production de pétrole

La production de pétrole contribue aux revenus de la fiducie avec ces paramètres spécifiques:

Métrique	Valeur
Production quotidienne quotidienne moyenne	126 barils par jour
Taux de redevance pétrolière	17.5%
Revenus pétroliers annuels	$2,345,000

Le bénéfice en pourcentage des droits minéraux

• Propriété des droits minéraux: 75% dans la région du bassin de San Juan
• ACRES MINÉRAUX TOTAL: 12 600 acres
• Revenu annuel des droits minéraux: 1 875 000 $

Revenu des intérêts des investissements en fiducie

Catégorie d'investissement	Revenu des intérêts annuels
Investissements à court terme	$237,500
Titres à long terme	$412,000
Revenu total des intérêts	$649,500

Appréciation potentielle des actifs minéraux sous-jacents

Valeur des actifs minéraux estimés: $42,500,000

• Taux d'appréciation annuel estimé: 3,2%
• Augmentation potentielle de la valeur de l'actif: 1 360 000 $

San Juan Basin Royalty Trust (SJT) - Canvas Business Model: Value Propositions

Passive, direct exposure to natural gas and oil commodity prices.

You receive direct exposure to the realized prices for the underlying production, which is over 99.8% natural gas as of December 31, 2024. This exposure is evident in the reported revenues; for the production month of April 2025, total revenue from the Subject Interests was $4,558,987, broken down into gas revenues of $4,403,222 and oil revenues of $155,765. The direct link to commodity performance is also reflected in the Q3 2025 results, where San Juan Basin Royalty Trust reported revenue of $400 and an adjusted revenue of $0. As of December 02, 2025, the Unit price was 5.520.

The nature of this exposure is quantified by the underlying asset structure:

Metric	Value as of Late 2025 Data Points
Asset Basis	75% net overriding royalty interest
Primary Commodity Exposure	Natural Gas (99.8% of estimated proved reserves as of December 31, 2024)
Q3 2025 Reported Revenue	$400
April 2025 Gas Revenue	$4,403,222

Potential for high, variable monthly cash distributions (when available).

The value proposition includes the potential for monthly cash flow, though this is highly variable and dependent on net proceeds exceeding Trust liabilities and expenses. For the first ten months of 2025, the Net Cash Total Distribution and Distribution per Unit were $0.00 for each month, resulting in a 2025 Year to Date total of $0.000000 as of the October 2025 declaration. This follows a period where the Trust had suspended distributions since May 2024. The Trust declared no cash distribution for June 2025 because net proceeds were applied to the balance of excess production costs.

Here is a comparison of the distribution reality for the first part of 2025 versus prior periods:

Month (2025)	Net Cash Total Distribution	Distribution per Unit
January	$0.00	$0.00
February	$0.00	$0.00
March	$0.00	$0.00
April	$0.00	$0.00
May	$0.00	$0.00
June	$0.00	$0.00
July	$0.00	$0.00
August	$0.00	$0.00
September	$0.00	$0.00
October	$0.00	$0.00

The Trust will not resume distributions until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves. The cumulative Excess Production Costs (EPC) balance as of September 30, 2025, was approximately $10,195,300 net to the Trust, which must be recovered from future net proceeds before Royalty Income is paid to Unit Holders.

Tax transparency and benefits for Unit Holders as a grantor trust.

The San Juan Basin Royalty Trust is classified for federal income tax purposes as a grantor trust, which means the Trust itself is not subject to tax at the trust level. This structure means Unit Holders are considered to own the Trust's income and principal directly. Unit Holders must report their share of production revenues as ordinary income from oil and natural gas royalties. A key benefit is the entitlement to claim depletion with respect to that income. For Unit holders who acquired Units after October 11, 1990, the percentage depletion amount should equal the gross royalty income multiplied by 15%.

Key tax structure points include:

• Tax status: Grantor Trust for federal income tax purposes.
• Tax classification: Widely-held fixed investment trust (WHFIT) / Non-mortgage WHFIT (NMWHFIT).
• Unit Holder reporting: Ordinary income from oil and natural gas royalties.
• Potential deduction: Entitlement to claim depletion.

No direct exposure to the operational or capital expenditure risks of drilling.

You are shielded from the day-to-day operational and capital expenditure risks because the properties are operated by Hilcorp San Juan L.P. The Trustee's primary function is collecting net proceeds, not managing operations. The Trust is not liable for any production costs or liabilities attributable to the Royalty. However, the operator's costs can create a liability for the Trust via the Excess Production Costs mechanism. For the production month of April 2025, Hilcorp reported total production costs (excluding EPC) of $4,017,917, which included lease operating expenses of $2,510,928, severance taxes of $568,685, and capital costs of $1,122,304. Hilcorp estimated its 2025 capital expenditures for the Subject Interests to be $9.0 million.

The structure of cost recovery is defined by the following:

• Operator: Hilcorp San Juan L.P.
• Trust Liability: Not liable for production costs or liabilities.
• Cost Recovery Mechanism: Excess Production Costs must be recovered from future net proceeds.
• Cumulative EPC (Net to Trust) as of September 30, 2025: $10,195,300.

San Juan Basin Royalty Trust (SJT) - Canvas Business Model: Customer Relationships

The relationship San Juan Basin Royalty Trust (SJT) maintains with its Unit Holders is almost entirely one-way and transactional, reflecting its nature as a passive royalty trust. You, as a Unit Holder, are primarily connected through the flow of funds and required regulatory disclosures.

Transactional relationship via monthly cash distributions to Unit Holders.

This is the core economic interaction. The Trust makes monthly distributions of the excess of the preceding month's royalty income received over expenses incurred. However, as of late 2025, this transactional flow has been entirely suspended due to cost recovery requirements. For instance, the Trust declared no cash distribution for the months of June 2025, October 2025, and November 2025. The year-to-date total net cash distribution through October 2025 was reported as $0.000000. This suspension is directly tied to the need to recover Excess Production Costs incurred previously. As of September 30, 2025, the balance of these cumulative costs stood at approximately $13,593,734 gross ($10,195,300 net to the Trust). Before distributions can resume, future net proceeds must first cover this deficit, replenish a reserve of $2,000,000, and repay the Line of Credit balance.

Metric	Value as of Late 2025 Data Point	Reference Period
Monthly Distribution Status	No Distribution Declared	June, October, November 2025
Cumulative Excess Production Costs (Gross)	$13,593,734	September 30, 2025
Required Cash Reserve Replenishment	$2,000,000	Condition for Resuming Distributions
Total Cash Reserves	$29,160	September 30, 2025
Total Revenue Reported (Gross)	$5,384,015	August 2025 Production Month

Information dissemination through mandatory SEC filings and press releases.

Transparency is maintained through formal, regulated channels. The Argent Trust Company, as Trustee, furnishes information to Unit Holders via mandatory filings with the Securities and Exchange Commission (SEC). You can review the latest Form 8-K reports, such as the one filed on October 21, 2025, or the 10-Q filed on November 13, 2025, on the SEC's website (www.sec.gov). Furthermore, the Trust issues monthly press releases detailing operational and financial updates, which, as of July 21, 2025, are self-published on the Trust's website, www.sjbrt.com, rather than being sent via wire distribution.

Key information channels include:

• Mandatory filings such as Form 8-K and 10-Q with the SEC.
• Monthly press releases published on www.sjbrt.com.
• The Trustee's primary function is collecting proceeds and making distributions.

Minimal, passive interaction; the Trust has no employees or active management.

Honestly, the interaction is as passive as it gets for a security. The Trustee's primary function is strictly limited to collecting monthly net proceeds attributable to the Royalty and making distributions after deducting administrative expenses and setting cash reserves. The structure explicitly prevents active management; the Trustee is not empowered to engage in any business or commercial activity, nor can it use the Trust Estate to acquire additional properties. This lack of active management means there are no employees to interact with regarding operations, keeping the relationship purely administrative and financial.

Unit Holders receive individualized tax letters (not K-1s) annually.

For your annual tax compliance, you receive individualized documentation. Because the San Juan Basin Royalty Trust is a grantor trust for federal income tax purposes, the proper classification of income and expense depends on your specific facts and circumstances. While Unit Holders should consult their own tax advisors, the Trust provides necessary information on its website (www.sjbrt.com) or upon request to the Trustee. For Unit Holders who acquired their Units after October 11, 1990, the Trust provides data that allows for the calculation of a Percentage Depletion per Unit of 0.025666, which may be claimed if it exceeds the Cost Depletion amount. This documentation helps you compute your depletion deduction, which is a critical step for reporting income from the Trust. Finance: draft the 2025 tax information summary for the website by February 1, 2026.

San Juan Basin Royalty Trust (SJT) - Canvas Business Model: Channels

You're looking at how San Juan Basin Royalty Trust (SJT) connects its value proposition-the 75% net overriding royalty interest-to its unitholders and the market. It's a straightforward setup, relying on established financial infrastructure and public disclosure rules.

New York Stock Exchange (NYSE) for trading Units under the symbol SJT

The Units of beneficial interest trade publicly on the New York Stock Exchange under the ticker symbol SJT. This is the primary market channel for liquidity. As of the close on December 03, 2025, the Unit price was $5.77. The Trust has been listed on the NYSE since 1980. For context on market size at that date, the Market Cap stood at $268.93M, based on 46.61M Shares Outstanding.

Here's a quick look at the trading context around that date:

Metric	Value as of Dec 03, 2025	Period Reference
Closing Price (USD)	$5.77	End of Day, Dec 03, 2025
52-Week Range (USD)	$3.66-$7.22	52 Weeks prior to Dec 03, 2025
Shares Outstanding (Millions)	46.61M	As of Dec 03, 2025
Market Capitalization (Millions USD)	$268.93M	As of Dec 03, 2025

The stock trades within a wide, horizontal trend, which means you see price action between levels like the 52-week low of $3.66 and the high of $7.22.

Brokerage firms and transfer agents for distribution of cash payments

For Unit holders, the distribution channel is managed through a designated transfer agent. The current Transfer Agent is Computershare Investor Services, whose customer service line is (312) 360-5154. The Trustee, Argent Trust Company, also handles related inquiries, reachable at (855) 588-7839. Brokerage firms facilitate the initial purchase, as San Juan Basin Royalty Stock can be bought through virtually any brokerage service.

However, cash payments are currently halted. The Trust has reported $0.00 Total Distribution per Unit for every month from January 2025 through October 2025. The suspension of distributions began in May 2024 due to excess operating costs exceeding royalty income.

The distribution status for 2025 shows:

• Total YTD Distribution for 2025: $0.000000.
• The Trust suspended distributions since May-2024.
• The balance of cumulative Excess Production Costs net to the Trust was $10,195,300 as of September 30, 2025.
• No cash distributions will resume until future net proceeds cover Trust liabilities and replenish cash reserves.

Official Trust website and SEC EDGAR for financial and production data

Transparency is delivered via the official Trust website and mandatory regulatory filings. The official site is www.sjbrt.com. This is where Unit Holders can access monthly tax information and depletion calculators.

Mandatory financial and production data flows through the SEC EDGAR database, accessible via services like Nasdaq or Fintel. The 2025 3rd Quarter Report was published on December 03, 2025. This report details the operational performance that dictates future cash flow.

Key production and cost metrics from the period ending September 30, 2025, show the current state of the royalty income stream:

• Natural gas production for the three months ended September 30, 2025: 6,918,497 Mcf.
• Average natural gas price for the three months ended September 30, 2025: $2.11 per Mcf.
• Total Gross Proceeds for the nine months ended September 30, 2025, increased by approximately 50.0% compared to the same period in 2024.
• Trust administrative expenses for the three months ended September 30, 2025, decreased by 70.1% compared to the same period in 2024.
• There was no Royalty Income distributed to the Trust by Hilcorp for the three months ended September 30, 2025, as net proceeds were applied to Excess Production Costs.

Finance: draft 13-week cash view by Friday.

San Juan Basin Royalty Trust (SJT) - Canvas Business Model: Customer Segments

You're looking at the core group that holds beneficial interests in San Juan Basin Royalty Trust (SJT), which is a fixed investment trust listed on the New York Stock Exchange (NYSE) since 1980.

Individual and institutional investors seeking commodity-linked income.

This segment is drawn to the monthly distribution structure, though it's important to note this payment is taxed as ordinary income, not the lower qualified dividend tax rate. As of the close on December 3, 2025, the Unit price was $5.77, having traded within a 52-week range of $3.66 to $7.22. The Trust's primary asset is a 75% net overriding royalty interest in oil and gas properties in the San Juan Basin. The Trustee's function is simply collecting net proceeds and distributing them after expenses and reserve requirements are met; the Trustee cannot acquire additional properties.

• Trust listed on NYSE since 1980.
• Distribution is a monthly payment, not a qualified dividend.
• Stock price as of December 3, 2025: $5.77.
• The Trust holds a 75% net overriding royalty interest.

Investors bullish on natural gas prices in the San Juan Basin.

Investor interest directly correlates with the realized price of natural gas, as the Trust's distributable income is the net proceeds from production. For instance, the production month of December 2024, combined with continued low natural gas pricing, resulted in the Trust declaring no cash distribution for February 2025 due to excess production costs. Conversely, for the nine months ended September 30, 2025, Total Gross Proceeds increased approximately 50.0% compared to the same period in 2024, primarily due to slightly higher natural gas prices and higher production volumes.

The operator's 2025 Plan allocated approximately $4.0 million to seven new vertical drill projects and approximately $4.5 million to 22 recompletion and workover projects, which are the activities that ultimately affect the Royalty Income stream.

Tax-sensitive investors utilizing the grantor trust structure for depletion benefits.

The structure itself is a key draw for certain investors because the San Juan Basin Royalty Trust is taxed as a grantor trust, meaning it is not taxed at the trust level. Unit Holders report their share of income and principal directly. This allows Unit Holders to claim depletion with respect to that income, which can be a return of capital for tax purposes. For Units acquired after October 11, 1990, Unit Holders are allowed the greater of cost or percentage depletion, with percentage depletion typically calculated at 15% of the gross royalty income amount. Investors holding units in tax-deferred accounts, like an IRA, often use this structure to ignore the immediate tax complexities.

Holders in taxable accounts receive Form 1099-MISC and Form 1099-INT, not a K-1, which dictates their reporting requirements. The Trustee maintains a plan to increase cash reserves to $2.0 million before resuming distributions, and as of September 30, 2025, the cumulative Excess Production Costs stood at approximately $10,195,300 net to the Trust.

Here's a quick look at some key figures relevant to the Trust's operation and investor status as of late 2025:

Metric	Value/Rate	Reference Period/Date
Net Overriding Royalty Interest	75%	Trust Indenture
Percentage Depletion Rate (Post-10/11/1990 Units)	15%	Tax Rule
Stock Price (Closing)	$5.77	December 3, 2025
Cumulative Excess Production Costs (Net)	$10,195,300	September 30, 2025
Target Cash Reserve Level	$2,000,000	Trustee Plan
Gross Proceeds Increase (YTD)	50.0%	Nine Months Ended September 30, 2025 vs. 2024

What this estimate hides is the monthly volatility in Royalty Income, which directly dictates the immediate distribution amount. Finance: draft 13-week cash view by Friday.

San Juan Basin Royalty Trust (SJT) - Canvas Business Model: Cost Structure

You're looking at the costs that chip away at the gross royalty income San Juan Basin Royalty Trust (SJT) receives from Hilcorp San Juan L.P. These costs are the primary reason distributions have been suspended, so understanding their structure is key.

The Trust's direct costs are relatively straightforward, revolving around administration and servicing legacy debt/deficits. The Trustee, Argent Trust Company, incurs fixed administrative expenses. For October 2025, these expenses totaled exactly $21,200.

The biggest drain, however, is the obligation to clear the cumulative net Excess Production Costs (EPC). This deficit occurs when production costs and capital expenditures exceed the gross proceeds for a period. As of the October 2025 reporting, the net deficit stood at $8,722,969. Until this balance is fully repaid, all net proceeds are applied to this liability, meaning Unit Holders receive no distributions. To cover ongoing Trust expenses like the Trustee fees, the Trust relies on its Line of Credit (LOC) at Texas Bank. The outstanding principal balance on this LOC as of October 2025 was $293,440. Interest expense is a carrying cost on this debt; for October 2025, $1,798 in cash reserves was used to pay this interest.

Here's a look at the Trust's key liabilities and recurring direct costs:

• Cumulative Net Excess Production Costs (as of October 2025): $8,722,969
• Trustee Fixed Administrative Expenses (October 2025): $21,200
• Outstanding Line of Credit Principal (as of October 2025): $293,440
• Required Reserve Replenishment: $2,000,000 (before distributions resume)

Before any royalty income even reaches the Trust for these administrative deductions, the operator, Hilcorp, makes several significant pre-deductions from the gross proceeds generated by the Subject Interests. These deductions are the operational cost structure that directly impacts the Trust's revenue stream. We can look at the detailed breakdown provided for the August 2025 production month to see the scale of these items.

These operator-level deductions are substantial and directly reduce the gross revenue available to the Trust:

Deduction Category	Amount (August 2025 Production Month)
Lease Operating Expenses	$2,946,406
Severance Taxes	$479,939
Capital Costs	($5,439) Credit

To be fair, the capital costs in August 2025 were a credit, which helped reduce the net income deficit that month, unlike in prior months. For instance, capital costs for the production month of July 2025 were $333,372. The Trust's ability to resume distributions depends on future net proceeds being sufficient to cover the EPC balance, replenish the $2,000,000 cash reserve, and repay the LOC principal and interest. Finance: draft 13-week cash view by Friday.

San Juan Basin Royalty Trust (SJT) - Canvas Business Model: Revenue Streams

The primary revenue stream for San Juan Basin Royalty Trust (SJT) is the net proceeds from the 75% net overriding royalty interest (the Royalty) carved out of oil and gas leasehold interests in the San Juan Basin of New Mexico, which are operated by Hilcorp San Juan L.P.. This Royalty is the principal asset of the Trust.

Revenue generation is directly tied to the performance of the underlying assets and commodity markets. For instance, Total Gross Proceeds for the nine months ended September 30, 2025, increased approximately 50.0%, or $19.4 million, compared to the same nine-month period in 2024. This increase was driven by slightly higher natural gas prices and higher production volumes, particularly from two new horizontal wells installed in 2024.

The revenue stream is highly volatile, tied to natural gas and oil commodity prices. Natural gas is the dominant reserve, with 99.8% of estimated proved reserves being natural gas as of December 31, 2024. The realized price for natural gas directly impacts the net proceeds available. For example, the average gas price for August 2025 was reported at $2.29 per Mcf. This contrasts with the average price in April 2025, which was $1.87 per Mcf.

Here's a look at some key revenue-related figures as of late 2025:

Metric	Value/Status	Period/Date
Net Proceeds Applied to EPC (Q3)	$1,174,206	Three months ended September 30, 2025
Cumulative Excess Production Costs (Net)	$10,195,300	As of September 30, 2025
Target Cash Reserve	$2,000,000	Target for replenishment
Cash Reserves Balance	$27,243	As of October 2025
Average Realized Gas Price	$2.29 per Mcf	August 2025

Interest income from short-term investments of cash reserves exists, but its contribution is currently minimal and secondary to the primary royalty income. The Trust invests royalty income in short-term instruments until distribution. However, interest income has decreased for the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to the decrease in Royalty Income and lower cash reserves. For instance, interest income was only $97 for the month of October 2025, and $1,742 for April 2025. These small amounts are typically applied to cover a portion of the Trust's administrative expenses.

Crucially, no cash distribution revenue is currently available to Unit Holders due to the Excess Production Costs (EPC) deficit. The Trust makes monthly distributions only from the excess of preceding month's royalty income received over expenses incurred. Until the cumulative EPC balance is paid in full, the Trust will not receive royalty income, as all net proceeds are applied to the deficit. The conditions for resuming distributions are clear, though the timing is uncertain:

• Repay the balance of cumulative Excess Production Costs, which stood at approximately $10,195,300 net to the Trust as of September 30, 2025.
• Replenish the mandatory cash reserve to $2,000,000.
• Repay the principal and interest on the Trust's Line of Credit (LOC). As of October 2025, the LOC balance was $293,440.

The continued application of net proceeds to the EPC means that, for the three months ended September 30, 2025, even though 75% of the net proceeds ($1,174,206) would otherwise have been payable as Royalty Income, it was instead applied to reduce the deficit.