SJT Skips July Distribution as Deficit Hits $9.6M, Hilcorp Slashes 2026 Drilling Plan
SJT is trading near its 52-week low of $2.5 (2.6% above the low).
Summary
San Juan Basin Royalty Trust skipped its July distribution as the excess production cost deficit grew to $9.6 million, and operator Hilcorp cut its 2026 drilling plan by more than half, dimming the outlook for future royalty income.
Key Events · Earnings and Guidance · SJT
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No July Distribution
The Trust declared no monthly cash distribution for July 2026, marking the third consecutive month without a payout, due to excess production costs and low natural gas prices.
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Deficit Grows to $9.6M
Cumulative excess production costs reached $9,637,754 gross ($7,228,316 net to the Trust), up $379,005 gross from last month, as Hilcorp continues to recoup costs from 2024 well drilling.
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Hilcorp Slashes 2026 Drilling Plan
Hilcorp removed five of nine planned vertical wells from its 2026 development plan, reducing capital expenditures by approximately $450,000, leaving only four wells — one in progress, two completed, and one awaiting connection.
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Line of Credit Nears $1M
The Trust drew an additional $54,338 from its line of credit to cover administrative expenses, bringing the outstanding principal to $998,808, with cash reserves depleted to just $3,891.
Analysis · SJT · Energy & Transportation
The Trust will not pay a July distribution — the third consecutive month without one — as the cumulative excess production cost deficit swelled to $9.6 million gross ($7.2 million net). Hilcorp also removed five of nine planned 2026 wells, cutting capital spending by roughly $450,000, which reduces near-term costs but signals lower future production. The line of credit balance rose to $998,808 after another draw to cover administrative expenses. With the stock near its 52-week low and a going concern warning already in place, the growing deficit and scaled-back drilling plan deepen the cash-flow crisis for unitholders.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 41% of the 324 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.33%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SJT was trading at $2.57 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $119.6M. The 52-week trading range was $2.50 to $6.61. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.