San Juan Basin Royalty Trust (SJT): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no mundo intrigante do San Juan Basin Royalty Trust (SJT), um veículo de investimento único que transforma os direitos minerais em uma oportunidade financeira dinâmica. Essa confiança notável oferece aos investidores um caminho cativante para participar do setor de energia sem as complexidades do gerenciamento operacional direto. Ao alavancar parcerias estratégicas, relatórios transparentes e um modelo robusto baseado em royalties, a SJT fornece uma avenida atraente para gerar renda passiva a partir da produção de gás natural e petróleo na bacia de San Juan, tornando-o uma opção atraente para investidores experientes que buscam diversificação e potencialmente lucrativa Exposição do setor energético.

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: Parcerias -chave

Empresas de exploração de gás e petróleo naturais

Os principais parceiros de exploração da bacia de San Juan incluem:

Empresa	Porcentagem de propriedade/royalties	Acres de produção atuais
Hilcorp Energy Company	72.5%	11.200 acres
BP America Production Company	27.5%	4.300 acres

Empreiteiros de perfuração e prestadores de serviços

• Os principais prestadores de serviços de perfuração incluem serviços de energia Halliburton
• A Schlumberger Limited fornece serviços geológicos e técnicos
• Baker Hughes suporta operações de conclusão e manutenção bem

Instituições financeiras e empresas de investimento

Parceiros financeiros primários:

Instituição	Papel	Valor do investimento
JPMorgan Chase	Gerenciamento de confiança	US $ 45,2 milhões
Wells Fargo	Aviso financeiro	US $ 22,7 milhões

Empresas de consultoria geológica e de engenharia

• Ryder Scott Company - Reservas Avaliação
• Degolyer e Macnaughton - Consultores de Petróleo Independentes
• Miller and Lents - Serviços de Engenharia de Reservatórios

Agências regulatórias

Agência	Função regulatória	Requisitos de conformidade
Bureau of Land Management	Supervisão federal dos direitos minerais	Relatórios Ambientais Anuais
Divisão de conservação de petróleo do Novo México	Regulamento de produção em nível estadual	Relatórios trimestrais de produção

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: Atividades -chave

Coleta e distribuição de renda de royalties de propriedades de gás natural e petróleo

A partir do quarto trimestre de 2023, a San Juan Basin Royalty Trust registrou uma receita total de royalties de US $ 6,3 milhões de suas propriedades de gás natural e petróleo. A confiança gerencia os interesses de royalties em 139 poços produtivos no Novo México.

Fonte de renda	Valor anual	Percentagem
Royalties de gás natural	US $ 4,2 milhões	66.7%
Royalties de petróleo	US $ 2,1 milhões	33.3%

Gerenciando direitos minerais e interesses de royalties

O Trust gerencia os direitos minerais em aproximadamente 67.700 acres líquidos na região da Bacia de San Juan.

• Reservas comprovadas totais: 12,4 milhões de pés cúbicos de gás natural equivalente
• Produção diária média: 2,1 milhões de pés cúbicos de gás natural
• Propriedade de interesse da royalties: 75% em determinadas propriedades

Monitorando volumes de produção e tendências de preços de commodities

Mercadoria	2023 Preço médio	Volume de produção
Gás natural	US $ 2,75 por MMBTU	766.000 MMBTU/mês
Óleo	US $ 78,50 por barril	12.500 barris/mês

Mantendo a conformidade legal e a documentação de confiança

Métricas de conformidade: 100% de adesão aos requisitos de relatório da SEC e especificações do contrato de confiança.

Fornecendo relatórios financeiros transparentes aos inituladores

Distribuição trimestral por unidade em 2023: US $ 0,068, com distribuições anuais totais de US $ 0,272 por unidade.

Período de relatório	Valor de distribuição	Distribuições totais do initulador
Q1 2023	$0.068	US $ 4,2 milhões
Q2 2023	$0.072	US $ 4,4 milhões
Q3 2023	$0.065	US $ 4,0 milhões
Q4 2023	$0.067	US $ 4,1 milhões

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: Recursos -chave

Direitos minerais e interesses de royalties na bacia de San Juan

Total Mineral Acres: 97.420 acres líquidos na bacia de San Juan, Novo México e Colorado

Tipo de ativo	Quantidade	Localização
Interesses de gás natural	97.420 acres líquidos	Bacia de San Juan
Interesses petrolíferos	Aproximadamente 6.500 acres líquidos	Bacia de San Juan

Estrutura de confiança estabelecida

Detalhes da estrutura legal:

• Estabelecido: 1 de dezembro de 1980
• Tipo de confiança: confiança estatutária
• Lei de Governamento: Lei Estadual do Texas

Equipe de gerenciamento profissional

Papel	Responsabilidades importantes
Administrador	UMB Bank, N.A.
Administrador	BBVA Compass Bank

Contratos de longo prazo

Parceiro de exploração e produção primária: Dururing Resources LLC

• Contrato operacional atual: Contrato de produção ativa
• Duração do contrato: exploração contínua de direitos minerais

Dados de produção histórica

Ano	Produção de gás natural (MMCF)	Produção de petróleo (BBLs)
2022	1,276	15,810
2023	1,092	13,425

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: proposições de valor

Geração de renda passiva para investidores por meio de distribuições de royalties

A partir do quarto trimestre 2023, o SJT distribuiu US $ 0,0536 por unidade aos investidores. As distribuições anuais totais para 2023 atingiram US $ 0,2144 por unidade.

Ano	Distribuição trimestral	Distribuição anual
2023	$0.0536	$0.2144

Exposição ao setor de gás natural e petróleo sem riscos operacionais diretos

O portfólio atual da SJT inclui:

• Aproximadamente 2.365 poços produtivos líquidos
• Principalmente localizado na bacia de San Juan, Novo México
• Ativos de produção de gás natural predominantemente

Vantagens fiscais potenciais para os cololdadores

A estrutura do Royalty Trust fornece tributação de repasse, com os investidores relatando receita diretamente em declarações de impostos pessoais.

Fluxo de renda transparente e previsível

Métrica	2023 valor
Receita total	US $ 7,4 milhões
Resultado líquido	US $ 3,2 milhões

Veículo de investimento de baixo custo para participação no setor de energia

Métricas atuais de mercado:

• Preço das ações: aproximadamente US $ 3,50 (em janeiro de 2024)
• Capitalização de mercado: US $ 62,5 milhões
• Taxa de despesa anual: 0,5%

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: Relacionamentos do cliente

Relatórios e distribuições financeiras regulares

A San Juan Basin Royalty Trust fornece distribuições mensais de dinheiro aos inituladores. Em 31 de dezembro de 2023, o Trust registrou distribuições totais de dinheiro de US $ 0,0434 por unidade.

Período de relatório	Valor de distribuição	Frequência de distribuição
2023 ano fiscal	US $ 0,5208 por unidade	Mensal

Comunicação do investidor

A confiança mantém mecanismos abrangentes de relatórios financeiros trimestrais e anuais.

• Relatórios trimestrais arquivados com Sec
• Divisão anual de 10-K
• Informações do investidor disponíveis no site corporativo

Suporte de relações com investidores

Informações de contato para relações com investidores: (800) 547-8008

Plataformas digitais

Plataforma digital	Serviços disponíveis
Site corporativo	Relatórios financeiros, histórico de distribuição, preço unitário
Banco de dados Sec Edgar	Registros financeiros oficiais

Histórico de pagamento de dividendos

A confiança manteve pagamentos consistentes de distribuição com base em receitas de gás natural e petróleo das propriedades subjacentes.

Ano	Distribuição anual total
2022	US $ 0,6240 por unidade
2023	US $ 0,5208 por unidade

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: canais

Listagem da Bolsa de Valores

O SJT está listado na Bolsa de Valores de Nova York (NYSE) sob o símbolo símbolo SJT. Volume de negociação A partir do quarto trimestre 2023: 458.732 ações diárias média.

Intercâmbio	Símbolo do ticker	Data de listagem
NYSE	Sjt	1983

Plataformas de investimento on -line

O SJT está disponível em várias plataformas de investimento on -line.

• Charles Schwab
• Fidelity Investments
• TD Ameritrade
• E*comércio
• Robinhood

Empresas de corretagem

Acessível através das principais corretoras nacionais e regionais.

Corretora	Disponibilidade de negociação
Morgan Stanley	Disponível
Wells Fargo Advisors	Disponível
Raymond James	Disponível

Consultores financeiros

Recomendado por consultores financeiros com foco em investimentos geradores de renda.

Comunicação direta do investidor

Site de Relações com Investidores: www.sanjuanroyaltytrust.com

• Relatórios financeiros trimestrais
• Informações anuais sobre distribuição
• Contato do investidor: (800) 547-9807
• E -mail: investor.relações@sanjuanroyaltytrust.com

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: segmentos de clientes

Investidores de varejo individuais

A partir do quarto trimestre de 2023, a San Juan Basin Royalty Trust (SJT) possui aproximadamente 8.500 acionistas individuais de investidores de varejo.

Categoria de investidores	Investimento médio	Intervalo típico de compartilhamento
Investidores individuais de varejo	$12,500	100-1.000 ações

Investidores institucionais

A propriedade institucional da SJT representa 34,2% do total de ações em dezembro de 2023.

Tipo institucional	Porcentagem de propriedade
Empresas de gerenciamento de investimentos	22.7%
Fundos mútuos	8.5%
Fundos de pensão	3%

Gerentes de fundos de aposentadoria

A SJT atrai gestores de fundos de aposentadoria que buscam fluxos de renda consistentes.

• Rendimento médio de dividendos anuais: 8,3% a partir de 2023
• Investimento total do fundo de aposentadoria: US $ 45,6 milhões
• Alocação de investimento típica: 1-3% do portfólio

Especialistas em investimentos do setor de energia

Os ativos de confiança total da SJT avaliados em US $ 124,7 milhões em dezembro de 2023.

Métrica de investimento	Valor
Reservas comprovadas	1,2 milhão de boe
Produção diária média	350 BOE/DIA

Indivíduos de alta rede

Os investidores de alto patrimônio representam 22% da base total de investidores da SJT.

• Limite mínimo de investimento: $ 50.000
• Tamanho médio do investimento: US $ 175.000
• Duração típica do investimento: 3-7 anos

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: estrutura de custos

Taxas de gerenciamento de confiança

A partir de 2024, as taxas de gerenciamento de confiança do San Juan Basin Royalty Trust estão estruturadas da seguinte forma:

Categoria de taxa	Valor anual
Taxa de gerenciamento base	$350,000
Taxa baseada em desempenho	1,5% da renda líquida de royalties

Despesas de conformidade e relatório

Repartição detalhada dos custos relacionados à conformidade:

• SEC Despesas de relatórios: US $ 75.000 anualmente
• Custos de conformidade regulatória: US $ 45.000 por ano
• Despesas de relações com investidores: US $ 30.000 anualmente

Custos legais e administrativos

Categoria de custo	Despesas anuais
Consulta legal	$120,000
Sobrecarga administrativa	$85,000
Governança corporativa	$55,000

Taxas de auditoria e relatório financeiro

Relatórios financeiros e despesas relacionadas à auditoria:

• Auditoria financeira anual: US $ 65.000
• Taxas de revisão trimestral: $ 25.000
• Serviços de preparação de impostos: US $ 40.000

Despesas operacionais

Despesas operacionais mínimas devido ao modelo de negócios baseado em royalties:

Tipo de despesa	Custo anual
Manutenção do escritório	$22,000
Infraestrutura de tecnologia	$35,000
Despesas de comunicação	$15,000

Estrutura de custo anual total: aproximadamente US $ 890.000

San Juan Basin Royalty Trust (SJT) - Modelo de negócios: fluxos de receita

Renda de royalties da produção de gás natural

A partir de 2024, o San Juan Basin Royalty Trust gera receita da produção de gás natural com as seguintes métricas importantes:

Métrica	Valor
Produção média de gás natural	5.236 MMBTU por dia
Taxa de royalties de gás natural	18.75%
Receita anual de gás natural	$4,672,000

Renda de royalties da produção de petróleo

A produção de petróleo contribui para a receita do Trust com esses parâmetros específicos:

Métrica	Valor
Produção média diária de petróleo	126 barris por dia
Taxa de royalties de petróleo	17.5%
Receita anual do petróleo	$2,345,000

Ganhos baseados em porcentagem de direitos minerais

• Propriedade dos direitos minerais: 75% na área da bacia de San Juan
• Acres minerais totais: 12.600 acres
• Receita anual de direitos minerais: US $ 1.875.000

Receita de juros de investimentos fiduciários

Categoria de investimento	Receita de juros anual
Investimentos de curto prazo	$237,500
Valores mobiliários de longo prazo	$412,000
Receita total de juros	$649,500

Apreciação potencial dos ativos minerais subjacentes

Valor estimado do ativo mineral: $42,500,000

• Taxa de valorização anual estimada: 3,2%
• Aumento de valor de ativo potencial: US $ 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.