# EDGAR Filing Document

**Accession Number:** 0000319655
**File Stem:** 0000950170-25-110035
**Filing Date:** 2025-8
**Character Count:** 12455
**Document Hash:** 6dcea5626ef35005cd8c81f9e49db7d2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-25-110035.hdr.sgml**: 20250819

**ACCESSION NUMBER**: 0000950170-25-110035

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20250819

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250819

**DATE AS OF CHANGE**: 20250819

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SAN JUAN BASIN ROYALTY TRUST
- **CENTRAL INDEX KEY:** 0000319655
- **STANDARD INDUSTRIAL CLASSIFICATION:** OIL ROYALTY TRADERS [6792]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 756279898
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08032
- **FILM NUMBER:** 251231301

**BUSINESS ADDRESS:**
- **STREET 1:** C/O ARGENT TRUST COMPANY
- **STREET 2:** 3838 OAK LAWN AVE, STE 1720
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75219-4518
- **BUSINESS PHONE:** 972-919-1353

**MAIL ADDRESS:**
- **STREET 1:** C/O ARGENT TRUST COMPANY
- **STREET 2:** 3838 OAK LAWN AVE, STE 1720
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75219-4518

**UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>WASHINGTON, D.C. 20549**

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## FORM 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report August 19, 2025** <br>

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**SAN JUAN BASIN ROYALTY TRUST**

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| **Texas** | **001-08032** | **75-6279898** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| **Argent Trust Company, Trustee**<br>**3838 Oak Lawn Ave.**<br>**Suite 1720**<br>**Dallas, Texas 75219** | **Argent Trust Company, Trustee**<br>**3838 Oak Lawn Ave.**<br>**Suite 1720**<br>**Dallas, Texas 75219** | **Argent Trust Company, Trustee**<br>**3838 Oak Lawn Ave.**<br>**Suite 1720**<br>**Dallas, Texas 75219** |
| **(Address of Principal Executive Offices, including zip code)** | **(Address of Principal Executive Offices, including zip code)** | **(Address of Principal Executive Offices, including zip code)** |

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**Registrant's Telephone Number, Including Area Code:** (**855) 588-7839**<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Units | SJT | New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐<br>

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## Item 2.02 Results of Operations and Financial Condition.
On August 19, 2025, the San Juan Basin Royalty Trust (the "Trust") issued a press release, a copy of which is attached hereto as Exhibit 99.1, announcing that it would not declare a monthly cash distribution to the holders of its units of beneficial interest ("Units") for August due to excess production costs for the Trust's subject interests ("Subject Interests") during the production month of June 2025, as well as continued low natural gas pricing.

In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall be deemed "furnished" and not "filed" with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

## Item 9.01 Financial Statements and Exhibits.

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1<br>| [<u>Press Release dated August 19, 2025</u>](sjt-ex99_1.htm) |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  | By: | ARGENT TRUST COMPANY,<br>AS TRUSTEE FOR THE SAN JUAN BASIN <br>ROYALTY TRUST<br>(Registrant) |
| Date: | August 19, 2025 | By:  | /S/ NANCY WILLIS  |
|  |  |  | Nancy Willis<br>Director of Royalty Trust Services |

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## Exhibit 99.1

*News Release*

**San Juan Basin Royalty Trust Declares No Cash Distribution for August 2025** 

**DALLAS, Texas, August 19, 2025** Argent Trust Company, as the trustee (the "Trustee") of the San Juan Basin Royalty Trust (the "Trust") (NYSE: SJT), today reported that it will not declare a monthly cash distribution to the holders of its units of beneficial interest (the "Unit Holders") due to excess production costs for the Trust's subject interests ("Subject Interests") during the production month of June 2025, as well as continued low natural gas pricing. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. The balance of cumulative excess production costs is currently approximately $15,713,422 gross ($11,785,066 net to the Trust), a decrease in the deficit of $218,379 gross ($163,785 net to the trust) from last month's reporting period. Hilcorp will continue to charge the balance of excess production costs to the Trust's net proceeds each month. Until the balance is paid in full, the Trust will not receive royalty income as all net proceeds will be applied to the balance of excess production costs. No cash distributions will be made by the Trust until future net proceeds are sufficient to (a) repay the balance of excess production costs, accrued as a result of Hilcorp San Juan L.P.'s drilling of two new horizontal wells in 2024, (b) replenish a reserve in the amount of $2,000,000, and (c) repay the principal due under the Note, after which time, the Trust will resume distributions of the royalty income to the holders of the Trust's units of beneficial interest.

Hilcorp reported $5,268,837 of total revenue from the Subject Interests for the production month of June 2025, consisting of $5,138,824 of gas revenues and $130,013 of oil revenues. For the Subject Interests, Hilcorp reported $5,050,458 of production costs (excluding the balance of excess production costs) for the production month of June 2025, consisting of $2,873,558 of lease operating expenses, $563,174 of severance taxes, and $1,613,726 of capital costs.

Based upon information provided to the Trust by Hilcorp, gas volumes for the Subject Interests for June 2025 totaled 2,297,617 Mcf (2,552,908 MMBtu), as compared to 2,323,516 Mcf (2,581,684 MMBtu) for May 2025. Dividing gas revenues by production volume yielded an average gas price for June 2025 of $2.24 per Mcf ($2.01 per MMBtu), an increase of $0.62 per Mcf ($0.55 per MMBtu) as compared to the average gas price for May 2025 of $1.62 per Mcf ($1.46 per MMBtu).

This month's Trust administrative expenses totaled $20,722. The slight increase in administrative expenses was attributable to differences in timing of the receipt and payment of certain expenses by the Trust. Interest income in the amount of $112 and a draw of $19,318 from the Trust's line of credit at Texas Bank (the "Line of Credit") will be used to pay the balance of Trust administrative expenses for the month of August.

Pursuant to the Amended and Restated Royalty Trust Indenture, dated December 12, 2007 (as amended on February 15, 2024, by the First Amendment to the Amended and Restated Royalty Trust Indenture), the Trustee is authorized to retain, in its sole discretion, a cash reserve for payment of Trust liabilities that are contingent or uncertain or otherwise not currently due and payable. To cover Trust expenses during any period of revenue shortfall, which has resulted and may continue to result from lower commodity prices and increased capital expenditures and lease operating expenses under Hilcorp's 2024 capital project plan for the Subject Interests, the Trustee increased the cash reserves in March and April of 2024, such that total cash reserves were $1.8 million as of April 30, 2024. Interest income and cash reserves were utilized to pay Trust administrative expenses each month from May 2024 through June of 2025.

Cash reserves were utilized to pay interest accrued on the Line of Credit for the months of July and August 2025, in the amounts of $1,059 and $1,292, respectively, such that the balance of cash reserves maintained by the Trust is currently $30,397.

Production from the Subject Interests continues to be gathered, processed, and sold under market sensitive and customary agreements, as recommended for approval by the Trust's Consultant. The Trustee continues to engage with Hilcorp regarding its ongoing accounting and reporting to the Trust, and the Trust's third-party compliance auditors continue to audit payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. The Trust's auditing process has also included detailed

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analysis of Hilcorp's pricing and rates charged. As previously disclosed in the Trust's filings, these revenues and costs (along with all costs) are the subject of the Trust's ongoing comprehensive audit process by the Trust's professional consultants and outside counsel to analyze compliance with all the underlying operative Trust agreements and evaluate potential remedies in the event there is suspected non-compliance.

As of July 21, 2025, the Trust self-publishes press releases on its website, <u>www.sjbrt.com</u>, and the release will not be included in any wire distribution, which has been the normal procedure for each monthly press release through June 20, 2025. The self-publication is due to the depletion of the Trust's cash reserves and conservation of the Line of Credit resources. The Trust will continue to furnish unitholders with information through its website and Form 8-K filings with the Securities and Exchange Commission, which are available at <u>www.sec.gov</u>.

**Forward Looking Statements.** Except for historical information contained in this news release, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements generally are accompanied by words such as "estimates," "anticipates," "could," "plan," or other words that convey the uncertainty of future events or outcomes. Forward-looking statements and the business prospects of San Juan Basin Royalty Trust are subject to a number of risks and uncertainties that may cause actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, certain information provided to the Trust by Hilcorp, volatility of oil and gas prices, governmental regulation or action, litigation, and uncertainties about estimates of reserves. These and other risks are described in the Trust's reports and other filings with the Securities and Exchange Commission.

Contact: San Juan Basin Royalty Trust

Argent Trust Company, Trustee

Nancy Willis, Director of Royalty Trust Services

Toll-free: (855) 588-7839

Fax: (214) 559-7010

Website: <u>www.sjbrt.com</u> 

Email: trustee@sjbrt.com

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