10-Q

10-Q 1 sjt_10q_93025.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period ________ to ________

Commission File Number: 001-08032

SAN JUAN BASIN ROYALTY TRUST

(Exact name of registrant as specified in its charter)


Texas	75-6279898
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Argent Trust Company, Trustee 3838 Oak Lawn Ave, Suite 1720 Dallas, Texas 75219-4518
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (855) 588-7839

Securities registered pursuant to Section 12(b) of the Act:


	Trading Symbol(s)	Name of each exchange on which registered
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units	SJT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ No ☒

Number of Units of beneficial interest outstanding at November 13, 2025: 46,608,796


PART I. FINANCIAL INFORMATION
Item 1	Financial Statements	1
Item 2	Trustee’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3	Quantitative and Qualitative Disclosures about Market Risk	18
Item 4	Controls and Procedures	18
PART II. OTHER INFORMATION
Item 1	Legal Proceedings	19
Item 1A	Risk Factors	19
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3	Defaults Upon Senior Securities	19
Item 4	Mine Safety Disclosures	19
Item 5	Other Information	19
Item 6	Exhibits	20
SIGNATURE


	September 30,		December 31,
	2025		2024
	(Unaudited)		(Audited)
ASSETS
Cash and short-term investments	$	29,160	$	760,920
Net overriding royalty interest in producing oil and gas properties (net of accumulated amortization of $130,597,911 at September 30, 2025 and December 31, 2024)		2,677,617		2,677,617
	$	2,706,777	$	3,438,537
LIABILITIES AND TRUST CORPUS
Distribution payable to Unit Holders	$	—	$	—
Cash reserves(1)		29,160		760,920
Line of credit utilization		274,135		—
Trust corpus – 46,608,796 Units of beneficial interest authorized and outstanding		2,403,482		2,677,617
	$	2,706,777	$	3,438,537


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
Royalty income	$	—		$	—		$	—		$	6,945,974
Interest income		385			18,463			11,608			73,331
Total income		385			18,463			11,608			7,019,305
General and administrative expenses		(115,539	)		(386,507	)		(1,017,505	)		(2,161,377	)
Change in cash reserves		3,802			368,044			731,762			300,301
Distributable income (Loss)	$	(111,352	)	$	—		$	(274,135	)	$	5,158,229
Distributable income (Loss) per Unit (46,608,796 Units)	$	(0.002389	)	$	—		$	(0.005882	)	$	0.110670


	Underlying Properties			Net to the Trust
Cumulative Excess Production Costs remaining at 12/31/2024	$	21,248,008		$	15,936,006
Net Excess Production Costs (recovery) for the quarter ended 3/31/2025	$	491,938		$	368,954
Net Excess Production Costs (recovery) for the quarter ended 6/30/2025	$	(6,972,006	)	$	(5,229,005	)
Net Excess Production Costs (recovery) for the quarter ended 9/30/2025	$	(1,174,206	)	$	(880,655	)
Total remaining to be recovered at 9/30/2025	$	13,593,734		$	10,195,300


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
.	2025			2024			2025				2024
Gross proceeds from the Subject Interests:
Natural gas	$	14,605,860		$	8,490,465		$	56,805,909			$	36,807,035
Oil		424,987			784,756			1,358,352				1,783,702
Other		—			—			—				182,978		(2)
Total		15,030,847			9,275,221			58,164,261				38,773,715
Production Costs:
Severance tax – gas		1,630,020			1,042,670			5,376,845				4,762,762
Severance tax – oil		46,856			86,811			139,904				195,701
Lease operating expense and property tax		8,237,944			7,550,762			24,529,675				23,361,057
Capital expenditures		3,941,821			10,889,598			20,498,809				12,710,264
Other		—			—			(35,247	)	(1)		—

Total Production Costs		13,856,641			19,569,841			50,509,986				41,029,784
Royalty profits (losses)		1,174,206			(10,294,620	)		7,654,275				(2,256,069	)
Cumulative Excess Production Costs(3)		(1,174,206	)		10,294,620			(7,654,275	)			11,517,368
Net profits		—			—			—				9,261,299
Net overriding royalty interest		75	%		75	%		75	%			75	%
Royalty Income	$	—		$	—		$	—			$	6,945,975


	For the Three Months Ended September 30,
	2025				2024
	Natural Gas (Mcf)		Oil and Condensate (Bbls)		Natural Gas (Mcf)			Oil and Condensate (Bbls)
Production
Subject Interests		6,918,497		7,775		5,691,025			11,111
Royalty		92,894		3,951		(6,683,813	)		6,460
Average Price (per Mcf/Bbl)	$	2.11	$	54.66	$	1.49		$	70.63


	For the Nine Months Ended September 30,
	2025				2024
	Natural Gas (Mcf)		Oil and Condensate (Bbls)		Natural Gas (Mcf)			Oil and Condensate (Bbls)
Production
Subject Interests		21,624,972		23,777		16,743,796			25,574
Royalty		197,352		11,789		(5,396,654	)		15,212
Average Price (per Mcf/Bbl)	$	2.63	$	57.13	$	2.20		$	69.26


Exhibit Number		Description

(4)(a)		San Juan Basin Amended and Restated Royalty Trust Indenture, dated December 12, 2007, filed as Exhibit 99.2 to the Trust’s Current Report on Form 8-K filed with the SEC on December 14, 2007, and incorporated herein by reference. *

(4)(b)		Net Overriding Royalty Conveyance from Southland Royalty Company to The Fort Worth National Bank, as Trustee, dated November 1, 1980 (without Schedules), filed as Exhibit 4(b) to the Trust’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2006, on March 1, 2007, and incorporated herein by reference. *

(4)(c)		Assignment of Net Overriding Interest (San Juan Basin Royalty Trust), dated September 30, 2002, between Bank One, N.A. and Texas Bank, filed as Exhibit 4(c) to the Trust’s Quarterly Report on Form 10-Q filed with the SEC for the quarter ended September 30, 2002, and incorporated herein by reference. *

(4)(f)		First Amendment to the San Juan Basin Amended and Restated Royalty Trust Indenture, dated February 15, 2024, filed as Exhibit 4(f) to the Trust's Current Report on Form 8-K filed with the SEC on February 15, 2024, and incorporated herein by reference*
31		Certification required by Rule 13a-14(a), dated November 13, 2025, by Nancy Willis, Director of Royalty Trust Services of the Trustee of the Trust**

32		Certification required by Rule 13a-14(b), dated November 13, 2025, by Nancy Willis, Director of Royalty Trust Services of the Trustee of the Trust***


ARGENT TRUST COMPANY, AS TRUSTEE OF THE SAN JUAN BASIN ROYALTY TRUST

	/s/ Nancy Willis
By:	Nancy Willis
	Director of Royalty Trust Services