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San Juan Basin Royalty Trust (SJT-1.43%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing no royalty income for the three months ended September 30, 2024, compared to $4,320,039 in the same period the previous year. This decrease is attributed to higher capital expenditures and lower natural gas prices.
Gross proceeds from the Subject Interests decreased to $9,275,221 from $14,676,845 in the same quarter of the previous year. The decrease is due to lower natural gas prices and production volumes.
Production costs for the quarter were $19,569,841, compared to $8,916,793 in the same quarter of the previous year. The increase is primarily due to higher capital expenditures under Hilcorp's 2024 Plan.
The Trust reported no distributable income for the quarter, compared to $3,947,050 in the previous year. The decline is mainly due to increased production costs and lower royalty income.
Cash reserves were used to cover Trust expenses due to the absence of royalty income. The Trustee plans to replenish the cash reserves before making any future distributions.
Hilcorp's 2024 capital project plan includes estimated expenditures of $34.0 million, with allocations for drilling projects and well recompletions.
The filing also details a compliance audit settlement payment of $1,037,093 received in September 2023, related to underpayment of royalties for the years 2017 through 2020.
The Trust's financial statements are prepared on a modified cash basis, which differs from U.S. GAAP. Revenues are not accrued in the month of production, and expenses are recorded when paid.
The Trust continues to engage with Hilcorp regarding accounting and reporting, with third-party compliance auditors reviewing payments and costs to ensure compliance with Trust agreements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the San Juan Basin Royalty Trust quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.