San Juan Basin Royalty Trust (SJT) investor relations material

Executive summary

• No royalty income was received from May 2024 through June 2026 due to excess production costs and low natural gas prices, resulting in no distributions to unit holders during this period.

• The Trust relied on cash reserves and a line of credit to cover administrative expenses, raising substantial doubt about its ability to continue as a going concern.

• As of June 30, 2026, cumulative excess production costs stood at $9.26 million ($6.94 million net to the Trust), and cash reserves were nearly depleted at $4,019.

Financial highlights

• Gross proceeds from subject interests decreased 43% year-over-year for the quarter and 39.3% for the six months ended June 30, 2026, primarily due to lower natural gas prices.

• Distributable income was negative: $(193,957) for the quarter and $(556,663) for the six months ended June 30, 2026.

• Interest income declined sharply due to reduced cash reserves.

• General and administrative expenses decreased 49.3% for the quarter and 36.5% for the six months year-over-year.

Outlook and guidance

• No distributions will be made until excess production costs are extinguished, liabilities are paid, and cash reserves are replenished to at least $2 million.

• Hilcorp's 2026 capital plan includes $14 million in expenditures, with $4.03 million spent as of June 30, 2026; actual costs may vary.

• The Trust's ability to continue as a going concern is in substantial doubt within one year of the report date.