San Juan Basin Royalty Trust outlines operational and financial updates

Argent Trust Company, acting as trustee, attributed a roughly $976,000 year-over-year reduction in administrative expenses to the non-recurring costs associated with the 2024 transition from PNC Bank. Moving forward, the trust will provide more granular reporting on these expenses, including specific breakdowns of legal, audit, and professional fees. Regarding the 2017–2020 joint interest audit, the trustee determined that further legal pursuit of adjustments would likely yield diminishing returns, opting instead to focus on implementing a new royalty auditor to bolster oversight of Hilcorp’s billings.

While the trust maintains regular communication with Hilcorp, the trustee noted that it lacks direct control over the operator’s well-level capital expenditure decisions. To manage its financial position, the trust is currently evaluating options for its $2,000,000 credit facility with Texas Bank, which is set to mature in May 2027 with an outstanding balance of approximately $1,075,400. In an effort to improve transparency, the trustee also announced the reinstatement of national newswire distribution for monthly press releases, beginning in October 2026.