San Juan Basin Royalty Trust Declares No Cash Distribution for September 2025

The San Juan Basin Royalty Trust has declared no cash distribution for September 2025 due to excess production costs and low natural gas pricing. The trust's subject interests have incurred cumulative excess production costs of approximately $13.6 million, leading to the decision not to declare a distribution. This decision is based on the balance of cumulative excess production costs and the current state of natural gas pricing.

Mesa Royalty Trust (NYSE: MTR) has announced that it will not declare a cash distribution for September 2025, citing significant excess production costs and low natural gas pricing. The decision was based on the cumulative excess production costs amounting to approximately $13.6 million, which has impacted the trust's ability to distribute funds to unitholders Mesa Royalty Trust Announces Trust Income for September 2025^[1].

The San Juan Basin Royalty Properties, which include interests in the San Juan Basin fields of New Mexico and Colorado, have been particularly affected by these costs. The trust's overriding royalty interest in these properties, which is approximately 11.44% of the net proceeds, has been subject to substantial expenses. The natural gas produced from these properties is sold on the spot market and through fixed price contracts, but recent low pricing has further exacerbated the financial strain Mesa Royalty Trust announces trust income for September 2025^[2].

The trust's most recent filings indicate that distributions to unitholders are expected to be materially reduced until the trust increases its cash reserves to $2.0 million, providing added liquidity. The trust's administrative expenses and the volatility in the industry and revenues reported by working interest owners also contribute to the financial pressure Mesa Royalty Trust Announces Trust Income for September 2025^[1].

This decision underscores the financial challenges faced by the trust and the need for careful management of production costs and cash reserves. Unitholders are advised to consult their tax advisors regarding the potential tax implications of this decision.