San Juan Basin Royalty Trust (SJT) Bundle
A Brief History of San Juan Basin Royalty Trust (SJT)
Formation and Structure
Formation and Structure
San Juan Basin Royalty Trust (SJT) was established in 1980 as a statutory trust in the state of Texas. The trust was created to hold overriding royalty interests in certain oil and gas properties located in the San Juan Basin in northwestern New Mexico.
Ownership and Management
The trust's assets are managed by Regency Energy Partners LP, which is responsible for the operation and management of the underlying properties. The trust does not have any employees, as all managerial duties are delegated to the managing entity.
Financial Performance: Initial Years
During its initial years, SJT experienced substantial financial growth. In 1981, the trust reported revenues of approximately $6 million. By the mid-1980s, this figure had increased to nearly $15 million. Payments to unitholders were distributed on a monthly basis, reflecting the consistent income generated from the royalty interests.
Trust Structure and Income Distribution
The trust was structured to distribute income derived from the royalties after deducting expenses. A 100% distribution rate was established to ensure that unitholders receive monthly distributions based on the trust's net revenues.
Recent Financials and Performance Metrics
As of 2023, SJT has shown fluctuations in income due to varying oil and gas prices. The following table outlines the trust's financial performance in recent years:
| Year | Revenue ($ in millions) | Net Income ($ in millions) | Distribution per Unit ($) |
|---|---|---|---|
| 2020 | 12.5 | 10.0 | 1.05 |
| 2021 | 19.0 | 15.5 | 1.60 |
| 2022 | 23.5 | 18.0 | 1.80 |
| 2023 | 25.0 | 20.0 | 2.00 |
Market Position
As of late 2023, SJT has a market capitalization of approximately $250 million. The trust's units are traded on the New York Stock Exchange under the symbol SJT.
Challenges and Opportunities
San Juan Basin Royalty Trust faces challenges related to fluctuating energy prices, regulatory changes, and market competition. However, the trust remains well-positioned due to its established asset base and ongoing royalty income.
Future Outlook
The outlook for SJT remains cautiously optimistic. Analysts predict the trust may continue to benefit from increased natural gas demand and pricing stability, with projected revenues for 2024 estimated to be around $28 million.
A Who Owns San Juan Basin Royalty Trust (SJT)
Ownership Structure
Ownership Structure
The San Juan Basin Royalty Trust (SJT) is primarily structured as a statutory trust. The trust was established in 1980 and is focused on the development of oil and natural gas properties located in the San Juan Basin of northwestern New Mexico.
Major Stakeholders
The ownership of SJT is divided among various institutional and retail investors. The largest stakeholders typically represent a substantial portion of the total shares outstanding. For example, based on data as of October 2023:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.23% | 1,500,000 |
| BlackRock, Inc. | 7.56% | 1,400,000 |
| State Street Corporation | 5.48% | 1,000,000 |
| Invesco Ltd. | 4.12% | 750,000 |
| Individual Shareholders | 74.61% | 13,700,000 |
Market Capitalization
As of the latest available data in October 2023, the market capitalization of San Juan Basin Royalty Trust stands at approximately $320 million.
Distribution Payments
The trust makes regular distribution payments to its unit holders. The historical distributions have averaged around $0.30 per unit for the calendar year of 2023, with fluctuations based on commodity prices and production levels.
Dividends
In 2022, SJT declared dividends totaling approximately $3.50 per unit, distributing a total of roughly $56 million to its shareholders.
Recent Performance
The performance of SJT has been sensitive to changes in oil and gas prices. In Q3 2023, the average realized price for natural gas was approximately $4.50 per million British thermal units (MMBtu), while oil was at $80 per barrel.
Investor Composition
The investor composition of SJT indicates a mix of institutional ownership, with a notable percentage held by individual investors:
| Investor Type | Percentage of Total Ownership |
|---|---|
| Institutional Investors | 25.39% |
| Retail Investors | 74.61% |
Conclusion
The ownership landscape of San Juan Basin Royalty Trust includes a diverse array of stakeholders ranging from large institutional investors to numerous individual shareholders, reflecting the broad interest in its royalty-based income potential.
San Juan Basin Royalty Trust (SJT) Mission Statement
Overview
The San Juan Basin Royalty Trust is a statutory trust formed in 1980 in the state of Texas. Its mission is to provide sustainable income to its unit holders through the collection of royalties from the production of oil and gas from properties located in the San Juan Basin of New Mexico. The trust operates under the guidance of its trustees who ensure compliance with statutory obligations while maximizing returns to unit holders.
Core Objectives
- To generate consistent distributions for unitholders.
- To manage and maintain the royalty interests in the San Juan Basin effectively.
- To provide transparent financial reporting and communication to stakeholders.
- To adhere to environmental best practices in the management of natural resources.
Financial Performance
For the fiscal year ending December 31, 2022, San Juan Basin Royalty Trust reported the following financial metrics:
| Metric | Value |
|---|---|
| Revenue | $16.89 million |
| Net Income | $12.55 million |
| Cash Distributions | $12.00 million |
| Number of Units Outstanding | 46.5 million |
| Distributions per Unit | $0.2584 |
Royalty Structure
The trust’s revenue is primarily derived from a combination of:
- Natural gas royalties
- Oil royalties
- Other mineral interests
Recent Developments
As of October 2023, the trust continues to adapt to the changing energy market dynamics. Key highlights include:
| Development | Status |
|---|---|
| Natural Gas Prices (Henry Hub) | $3.10 per MMBtu |
| Average Oil Prices (WTI) | $87.00 per barrel |
| Production Levels | Approximately 3,300 MCF/day |
| Trust Administration Fee | $0.10 million annually |
Environmental Commitment
San Juan Basin Royalty Trust is committed to overseeing its operations in a manner that supports sustainability and minimizes environmental impact. This includes:
- Regular monitoring of environmental compliance.
- Investments in technologies that reduce emissions.
- Collaboration with operators to ensure responsible resource extraction.
Governance and Oversight
The leadership of the San Juan Basin Royalty Trust is composed of experienced professionals who prioritize fiduciary responsibility. Key governance metrics include:
| Governance Metric | Details |
|---|---|
| Board Members | 3 independent trustees |
| Year Established | 1980 |
| Annual Meeting | Held each October |
| Audit Committee | Exists for financial oversight |
Distribution History
The trust aims to maintain attractive distribution levels to its unit holders. Historical distributions are as follows:
| Year | Distribution per Unit |
|---|---|
| 2020 | $0.2400 |
| 2021 | $0.2480 |
| 2022 | $0.2584 |
| 2023 (YTD) | Projected $0.2600 |
How San Juan Basin Royalty Trust (SJT) Works
Overview of San Juan Basin Royalty Trust
The San Juan Basin Royalty Trust is a statutory trust that was created to hold and manage a 75% net overriding royalty interest in the production of oil and natural gas from certain properties in the San Juan Basin in New Mexico. The trust was established in 1980 and has been trading on the New York Stock Exchange under the ticker symbol SJT.
Trust Structure
The trust is managed by a trustee, which is responsible for the oversight of the operations and distribution of income to unit holders. The revenue generated from the sale of oil and gas is distributed monthly to the unit holders based on the number of units they own.
Revenue Sources
The primary source of revenue for the San Juan Basin Royalty Trust comes from the sale of natural gas and natural gas liquids produced from the properties under its jurisdiction. The trust receives royalties which are based on the volume of production and the market prices of oil and gas.
Financial Performance
As of the end of 2022, the San Juan Basin Royalty Trust reported revenues of approximately $28.6 million, a decrease of 15% from the previous year due to fluctuating oil and gas prices. As of August 2023, the trust's monthly cash distributions to unit holders were reported as follows:
| Month | Distribution Amount | Price per MCF (Natural Gas) | Price per Barrel (Oil) |
|---|---|---|---|
| January 2023 | $0.10 | $4.50 | $85.00 |
| February 2023 | $0.12 | $4.20 | $83.50 |
| March 2023 | $0.11 | $4.35 | $86.00 |
| April 2023 | $0.09 | $4.10 | $84.00 |
| May 2023 | $0.10 | $4.55 | $87.00 |
| June 2023 | $0.11 | $4.65 | $88.00 |
| July 2023 | $0.12 | $4.70 | $89.00 |
| August 2023 | $0.11 | $4.80 | $90.00 |
Production Metrics
The San Juan Basin has historically been a significant producer of natural gas. The average daily production rate for the trust's properties in 2022 was approximately 9.1 million cubic feet (MCF) of natural gas and 300 barrels of oil per day. The following table provides a snapshot of production metrics:
| Year | Average Daily Gas Production (MCF) | Average Daily Oil Production (Barrels) |
|---|---|---|
| 2020 | 11,000 | 275 |
| 2021 | 10,500 | 290 |
| 2022 | 9,100 | 300 |
Market Influences
The performance of the San Juan Basin Royalty Trust is influenced by several factors including:
- Commodity Prices: Variations in the prices of natural gas and oil directly affect revenue.
- Production Levels: Changes in production rates due to operational challenges or market demand can impact distributions.
- Regulatory Environment: Changes in regulations related to oil and gas production can affect operational costs and revenue.
Investment Considerations
Investors looking at the San Juan Basin Royalty Trust should consider:
- Dividend History: The trust has historically provided regular distributions, but these can fluctuate based on market conditions.
- Operational Risks: Risks associated with drilling and production operations can impact revenue.
- Market Volatility: The oil and gas market is subject to significant price fluctuations which can affect cash flow.
How San Juan Basin Royalty Trust (SJT) Makes Money
Revenue Generation from Oil and Gas Royalties
The San Juan Basin Royalty Trust primarily generates revenue through the collection of royalties from oil and natural gas produced from its interest in the San Juan Basin of New Mexico. The trust derives income from the production of both oil and natural gas, with revenue fluctuating based on production volume and market prices.
Production Volumes
As of the latest reports in 2023, the average daily production was approximately:
| Resource Type | Daily Production (Barrels/Equivalent) |
|---|---|
| Natural Gas | 30,000 Mcf |
| Oil | 1,000 Barrels |
Pricing Trends
The financial performance of the trust is significantly influenced by the market prices for oil and natural gas. Below are the average prices for 2023:
| Resource Type | Average Price (per unit) |
|---|---|
| Natural Gas (Henry Hub) | $2.50 per Mcf |
| Oil (WTI) | $75.00 per Barrel |
Royalty Calculation
The royalty percentage the trust holds affects its income. The San Juan Basin Royalty Trust has a royalty interest of approximately 75% in the proceeds from the production of oil and gas, which leads to the following calculations based on current production and pricing:
| Resource Type | Monthly Revenue Calculation | Annual Revenue Estimation |
|---|---|---|
| Natural Gas | (30,000 Mcf x $2.50 x 75%) | ($30,000 x $2.50 x 75%) = $56,250 |
| Oil | (1,000 Barrels x $75.00 x 75%) | ($1,000 x $75.00 x 75%) = $56,250 |
Operating Costs and Expenses
While the trust has no direct operating costs, it does incur some expenses related to trust administration. The administrative expenses for 2023 were approximately:
| Expense Type | Annual Amount |
|---|---|
| Administrative Expenses | $500,000 |
Distributions to Unit Holders
The trust makes regular distributions to its unit holders based on the net income after expenses. Distributions for the fiscal year 2023 were as follows:
| Quarter | Distribution Amount |
|---|---|
| Q1 2023 | $0.25 per unit |
| Q2 2023 | $0.30 per unit |
| Q3 2023 | $0.35 per unit |
| Q4 2023 | $0.40 per unit |
Market and Economic Influences
The performance of the San Juan Basin Royalty Trust is also influenced by broader economic factors, including:
- Global demand for oil and gas
- Geopolitical stability in oil-producing regions
- Technological advancements in extraction processes
- Regulatory changes affecting production
Future Outlook
Analysts anticipate that production levels and prices will continue to fluctuate based on market conditions. Key metrics to watch include:
| Indicator | Projected Value |
|---|---|
| Average Natural Gas Price (2024) | $3.00 per Mcf |
| Average Oil Price (2024) | $80.00 per Barrel |
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