San Juan Basin Royalty Trust

San Juan Basin Royalty Trust is a U.S. royalty trust that holds a net overriding royalty interest in oil and natural gas properties in the San Juan Basin of northwestern New Mexico. The trust does not operate wells itself; it receives royalty income from production on the subject interests and distributes available cash to unit holders after expenses.

— San Juan Basin Royalty Trust
%
Royalty income from natural gas75% Cash flows derived from the trust's royalty interest in natural gas production from the subject properties.
Royalty income from oil20% Cash flows derived from the trust's royalty interest in oil production from the subject properties.
Interest income and cash reserves5% Interest earned on trust cash balances and temporary reserves held by the trustee.

The trust's economic beneficiaries are its unit holders, who receive distributions from royalty income rather than...

  • Unit holdersprimary

    Investors who own trust units and receive cash distributions from royalty income.

  • Hilcorp Energy Companyprimary

    Operator of the subject interests that produces, markets, and reports the oil and gas volumes used to calculate royalty income.

  • Energy commodity market participantssecondary

    Natural gas and oil market conditions determine the value of production underlying the trust's distributions.

The trust's assets are located in the San Juan Basin of northwestern New Mexico, so its cash flows are tied to a single...

  • •San Juan Basin assets are located in northwestern New Mexico
  • •Production is tied to a single U.S. operating basin
  • •Regional gas pricing affects royalty income directly
  • •Gathering-system conditions in the basin influence volumes
  • •No meaningful international operating diversification

The trust's structure is designed to collect royalty income, pay trust expenses, and distribute available cash to unit...

01
Preserve and administer the royalty interestlong-term

The trust's value comes from the underlying net overriding royalty interest and the cash it generates.

02
Depend on operator execution and reportingshort-term

Production volumes, costs, and sales data from Hilcorp determine distributable income.

03
Manage exposure to basin pricing and production costsmedium-term

Natural gas pricing, oil pricing, and production costs directly affect royalty income.

The trust is highly exposed to commodity prices, basin-specific production trends, and the operator's cost structure...

high

Commodity price volatility

Royalty income depends on realized natural gas and oil prices in the San Juan Basin.

Scope
Natural gas and oil sales
Materiality
high
high

Single-asset geographic concentration

The trust's principal asset is tied to one producing basin in New Mexico.

Scope
San Juan Basin
Materiality
high
high

Excess production costs

Production costs must be recovered before royalty income is again paid to the trust.

Scope
Net proceeds and distributions
Materiality
high
medium

Operator dependence

Hilcorp controls production, marketing, and reporting for the subject interests.

Scope
Operational and reporting accuracy
Materiality
high
Royalty income recognition timing
Can create quarter-to-quarter volatility in reported income
Excess production cost recovery
Can suppress distributable income even when production exists
Operator-reported estimates and settlements
Audit settlements and reporting adjustments can affect income
Interest income on cash reserves
Affects distributable income when royalty income is low

MESA ROYALTY TRUST/TX

MTR · Oil Royalty Traders

PERMIAN BASIN ROYALTY TRUST

PBT · Oil Royalty Traders

Permianville Royalty Trust

PVL · Crude Petroleum & Natural Gas

NORTH EUROPEAN OIL ROYALTY TRUST

NRT · Oil Royalty Traders

HUGOTON ROYALTY TRUST

HGTXU · Oil Royalty Traders

PermRock Royalty Trust

PRT · Crude Petroleum & Natural Gas

: 29/04/2026