SJT Overview

Market Performance: Rental, leasing, and royalty shares have shown relative strength, increasing by approximately 1.1% overall, with notable gains from San Juan Basin Royalty Trust (up 6.6%) and Permianville Royalty Trust (up 3.3%) on Thursday.

Sector Leaders: The video highlights Thursday's sector leaders, focusing on the Metals & Mining and Rental, Leasing, & Royalty stocks.

Share Price Decline: The share price of San Juan Basin Royalty Trust (NYSE:SJT) dropped by 14.13% from June 18 to June 25, 2025, following the announcement that no monthly cash distribution would be made for June due to excess production costs.

Financial Impact: The Trust will not receive royalty income until it pays off excess production costs of approximately $14.77 million, which were incurred from drilling new wells, leading to a halt in cash distributions to unitholders until future net proceeds are sufficient.

Trust Distribution Update: Argent Trust Company announced that the San Juan Basin Royalty Trust will not declare a monthly cash distribution to unit holders due to excess production costs from Hilcorp's drilling activities, with cumulative excess costs currently at approximately $14.8 million.

Financial Management and Future Outlook: The Trust has established a line of credit to manage administrative expenses during revenue shortfalls and plans to resume distributions once net proceeds are sufficient to cover liabilities and replenish reserves.

Distribution Decision: San Juan Basin Royalty Trust will not declare a monthly cash distribution to its Unit holders due to the application of net proceeds towards excess production costs from Hilcorp's drilling activities.

Financial Context: The amount of $1,499,498 that would have been payable as royalty income is being used to cover accrued costs related to two new horizontal wells drilled by Hilcorp in 2024.