San Juan Basin Royalty Trust Dossier
Qualitative Analysis
Business overview
San Juan Basin Royalty Trust (NYSE: SJT) is a Dallas-based express trust established on November 1, 1980. The Trust holds a 75% net overriding royalty interest (the "Subject Interests") carved out of oil and natural gas properties operated by Hilcorp San Juan L.P. (the operator and successor to Southland Royalty Company) in the San Juan Basin of northwestern New Mexico. The Trust's primary business model is passive; it collects royalty income from these properties and distributes the net proceeds to unitholders on a monthly basis. As of December 31, 2025, approximately 99.1% of the Trust's estimated proved reserves consisted of natural gas, making its financial performance and unit price highly sensitive to natural gas price fluctuations.
Research as of 20 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
A 32-project development plan established by operator Hilcorp Energy Company to optimize resource extraction and maintain production levels in the Subject Interests.
Expected impact: Includes $11.5 million allocated to nine new vertical drill projects (Mesaverde, Mancos, and Dakota formations) and six new horizontal drill projects (Mancos formation), $2.0 million for 17 recompletions/workovers, and $0.5 million for facilities projects.