San Juan Basin Royalty Trust (NYSE: SJT) declared a monthly cash distribution to the holders of its units, the company announced on Oct. 21.
Compass Bank, as trustee, declared the distribution of some $4.5 million or $0.096936 per unit, based principally upon production during the month of August. The distribution is payable Nov. 15, to unit holders of record as of Oc. 31.
Gas production for the properties from which the royalty was carved totaled some 3 million Mcf or some 3.3 million MMBtu. Dividing revenues by production volume yielded an average gas price for August of $3.46 per Mcf or $3.15 per MMBtu as compared to $3.45 per Mcf or $3.12 per MMBtu for July. 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. Capital costs for the month were $188,753. 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.