San Juan Basin Royalty Trust | 10-Q: FY2025 Q3 Revenue: USD 385

Revenue: As of FY2025 Q3, the actual value is USD 385.

EPS: As of FY2025 Q3, the actual value is USD -0.0024.

EBIT: As of FY2025 Q3, the actual value is USD -111.74 K.

Operational Metrics

• Net Income: There was no Royalty Income distributed to the Trust for the three and nine months ended September 30, 2025, due to higher capital project spending associated with Hilcorp’s drilling of two new horizontal wells in 2024, the costs of which extended into 2025.
• Production Costs: Total Production Costs for the three months ended September 30, 2025, were $13,856,641, compared to $19,569,841 for the same period in 2024. For the nine months ended September 30, 2025, Production Costs were $50,509,986, compared to $41,029,784 in 2024.

Cash Flow

• Line of Credit: The Trust established a line of credit of $2,000,000 with Texas Bank to cover administrative expenses until sufficient Royalty Income is received. As of September 30, 2025, the outstanding balance on the Line of Credit was $274,135.

Unique Metrics

• Excess Production Costs: As of September 30, 2025, the balance of cumulative Excess Production Costs was approximately $13,593,734 gross ($10,195,300 net to the Trust). These costs must be recovered from future Net Proceeds before Royalty Income is paid to the Trust.

Future Outlook and Strategy

• Core Business Focus: Hilcorp’s 2025 capital project plan includes 29 projects with an estimated expenditure of $9.0 million, focusing on new vertical drill projects and recompletions in various formations. As of September 30, 2025, $7.70 million of the budget had been spent.
• Non-Core Business: The Trust is not engaged in any business or commercial activity beyond the assets initially conveyed to it and does not plan to acquire new assets.