Compass Bank, as trustee of the San Juan Basin Royalty Trust (NYSE: SJT), declared a monthly cash distribution for the trust.
The distribution to the holders of its units of beneficial interest was some $4.4 million or $0.094625 per unit, based principally upon production during the month of July. The distribution is payable Oct. 15 to unit holders of record as of Sept. 30.
Gas production for the properties from which the royalty was carved totaled 2,949,189 thousand cubic feet (Mcf) or 3,255,683 million British thermal units (MMBtu). Dividing revenues by production volume yielded an average gas price for July of $3.45 per Mcf or $3.12 per MMBtu as compared to $3.72 per Mcf or $3.37 per MMBtu for June. The average gas price may vary from the posted index price for the San Juan Basin. The index price is a gross sales price, and the revenues used in the calculation of average gas prices are net of transportation, processing and gathering costs. Furthermore, the distribution to the trust in any given month may include significant volume adjustments for sales in prior months that reflect pricing for those prior months.
Burlington Resources Oil & Gas Co. LP, the principal operator of the underlying properties, accrues and withholds funds it estimates will be needed to cover capital expenses. The distribution for September includes a $387,100 credit for capital expenditures due to a downward revision in the capital accrual rate. After that adjustment, capital costs for the month were $195,351. Lease operating expenses were some $3.3 million and taxes were some $1.1 million.
San Juan Basin Royalty Trust is an independent energy company operating as an express trust. The company is based in Fort Worth, Texas.