10-Q

10-Q 1 sjt_10q_3312026.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 March 31, 2026


☐	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 May 14, 2026: 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	17
Item 4	Controls and Procedures	17
PART II. OTHER INFORMATION
Item 1	Legal Proceedings	18
Item 1A	Risk Factors	18
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3	Defaults Upon Senior Securities	18
Item 4	Mine Safety Disclosures	18
Item 5	Other Information	18
Item 6	Exhibits	19
SIGNATURE


	March 31,		December 31,
	2026		2025
	(Unaudited)		(Audited)
ASSETS
Cash and short-term investments	$	14,380	$	23,298
Net overriding royalty interest in producing oil and gas properties (net of accumulated amortization of $130,597,911 and $130,597,911 at March 31, 2026 and December 31, 2025, respectively)		2,677,617		2,677,617
	$	2,691,997	$	2,700,915
LIABILITIES AND TRUST CORPUS
Distribution payable to Unit Holders	$	—	$	—
Cash reserves		14,380		23,298
Line of Credit Utilization		750,514		387,808
Trust corpus – 46,608,796 Units of beneficial interest authorized and outstanding		1,927,103		2,289,809
	$	2,691,997	$	2,700,915


	Three Months Ended March 31,
	2026			2025
Royalty income	$	—		$	—
Interest income		201			8,238
Total income		201			8,238
General and administrative expenses		(371,825	)		(510,636	)
Change in cash reserves		8,918			502,398
Distributable income (Loss)	$	(362,706	)	$	—
Distributable income per Unit (46,608,796 Units)	$	(0.007782	)	$	—


	Underlying Properties		Net to the Trust
Cumulative Excess Production Costs remaining at 12/31/2025	$	8,438,536	$	6,328,902
Net Excess Production Costs (recovery) for the quarter ended 3/31/2026	$	2,251,717	$	1,688,787
Total remaining to be recovered at 3/31/2026	$	6,186,819	$	4,640,115


	For the Three Months Ended March 31,
.	2026			2025
Gross proceeds from the Subject Interests:
Natural gas	$	18,091,551		$	23,206,718
Oil		481,603			513,695
Other(1)		(3,472,228	)		—
Total		15,100,926			23,720,413
Production Costs:
Severance tax – gas		1,812,644			2,149,355
Severance tax – oil		55,647			57,218
Lease operating expense and property tax		10,222,348			7,958,418
Capital expenditures		758,570			14,047,360
Total Production Costs		12,849,209			24,212,351
Royalty profits (losses)		2,251,717			(491,938	)
Cumulative Excess Production Costs (2)		(2,251,717	)		491,938
Net profits		—			—
Net overriding royalty interest		75	%		75	%
Royalty Income	$	—		$	—


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 May 15, 2025, by Nancy Willis, Director of Royalty Trust Services of the Trustee of the Trust**

32		Certification required by Rule 13a-14(b), dated May 15, 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


	For the Three Months Ended March 31,
	2026						2025
	Natural Gas (Mcf)		Oil and Condensate (Bbls)		BOE		Natural Gas (Mcf)			Oil and Condensate (Bbls)		BOE
Production
Subject Interests		6,351,787		9,706		1,068,337		7,620,893			8,348		1,278,497
Royalty		1,514,001		5,400		257,734		(1,627,218	)		3,201		(268,002	)
Average Price (per Mcf/Bbl)	$	2.85	$	49.62			$	2.99		$	61.97