San Juan Basin Royalty Trust (SJT) investor relations material

Executive summary

• No royalty income was distributed for Q1 2026 due to excess production costs and continued low natural gas prices, resulting in a distributable loss of $362,706 for the quarter.

• The Trust continues to face significant liquidity challenges, relying on cash reserves and a line of credit to cover administrative expenses.

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

Financial highlights

• Distributable income for Q1 2026 was ($362,706), down from $8,918 in Q1 2025.

• No royalty income was received in Q1 2026; all net proceeds were applied to excess production costs.

• Cash reserves declined to $14,380 as of March 31, 2026, from $23,298 at year-end 2025.

• Outstanding line of credit balance was $750,514 as of March 31, 2026.

Outlook and guidance

• Hilcorp's 2026 capital plan includes $14 million in expenditures across 32 projects, with most funds allocated to new drilling and recompletions.

• No distributions to unit holders are expected until excess production costs are extinguished, liabilities are paid, and cash reserves are replenished.