San Juan Basin Skips Third Straight Distribution, But Excess-Cost Deficit Shrinks
SJT sits 46% above its 52-week low of $2.37.
Summary
No October distribution — the third straight skip — as Hilcorp applies all net proceeds to a ~$12.4 million gross excess production cost balance. This month the deficit shrank for the first time and gas prices improved, but the credit line funding trust expenses rose to $1.16 million.
Key Events · Earnings and Guidance · SJT
-
Third Consecutive Month With No Distribution
The trust declared no October 2026 cash distribution; all net proceeds continue to be applied against Hilcorp's excess production costs and low natural gas pricing.
-
Excess-Cost Deficit Falls for First Time
Cumulative excess production costs stand at ~$12,423,018 gross ($9,317,264 net), down $130,448 gross ($97,836 net) from last month's reporting period.
-
Credit Line Grows to $1.16 Million
An $80,101 October draw plus $17 of interest income covers $80,118 of administrative expenses, lifting line-of-credit principal to $1,155,501 from $944,471 at the Q2 10-Q; cash reserves are $3,891.
-
Gas Realizations Improve in August
Average gas price rose to $2.28/Mcf ($2.05/MMBtu) from $2.01/Mcf in July, on volumes of 2,057,618 Mcf; total subject-interest revenue was $4,868,781 against $4,738,333 of production costs.
Analysis · SJT · Energy & Transportation
For a third month in a row, unitholders get nothing, and the mechanics are unchanged: every dollar of net proceeds goes to Hilcorp until the ~$12.4 million gross excess production cost balance is cleared, then a $2 million reserve is rebuilt, then the line of credit is repaid. What is new is direction — the deficit fell $130,448 gross ($97,836 net) to $9.32 million net, the first decline after months of growth, helped by August gas realizations of $2.28/Mcf versus $2.01/Mcf in July. Against that, the credit line keeps funding overhead: an $80,101 October draw lifts principal to $1,155,501 from $944,471 at the Q2 10-Q, with cash reserves stuck at $3,891. Until Hilcorp's charge-offs stop consuming all proceeds, the trust remains a zero-income instrument, and the ongoing comprehensive audit of Hilcorp's costs and pricing is the lever that could change that math.
How filings like this one have moved
In the 30 days to Oct 20, 2026, 29.2% of the 1466 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, SJT was trading at $3.47 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $161.7M. The 52-week trading range was $2.37 to $6.55. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.