San Juan Basin Royalty Trust (SJT) investor relations material

Executive summary

• No distributable income for Q2 2025 due to excess production costs and increased capital expenditures, resulting in a net loss and no cash distribution to unit holders for the period.

• Trust drew on a new $2 million line of credit to cover administrative expenses as cash reserves were depleted.

• Excess production costs stemmed from significant lease operating expenses and capital spending on two new horizontal wells.

• Gross proceeds and natural gas production volumes increased year-over-year, but higher costs offset these gains.

• Substantial doubt exists about the Trust's ability to continue as a going concern within one year.

Financial highlights

• Gross proceeds from subject interests rose 72.3% to $19.4M for Q2 2025 compared to Q2 2024, driven by higher gas prices and production.

• Royalty income was $0 for Q2 2025, down from $1.85M in Q2 2024; distributable income per unit was $(0.00349) vs. $0.022864 year-over-year.

• Capital expenditures increased $1.68M for Q2 2025 and $14.74M for the six months ended June 30, 2025, compared to prior year periods.

• Cash reserves fell to $32,968 as of June 30, 2025, from $760,920 at year-end 2024.

• Outstanding balance on the line of credit was $162,783 at quarter-end.

Outlook and guidance

• No distributions will be made until excess production costs are recovered, cash reserves are replenished to $2M, and the line of credit is repaid.

• Hilcorp's 2025 capital plan includes $9M in projects, with $5.76M spent as of June 30, 2025; actual costs may vary.

• Future distributions depend on commodity prices, production volumes, and the pace of cost recovery.