San Juan Basin Royalty Trust (SJT) investor relations material

Executive summary

• The trust's principal asset is a 75% net overriding royalty interest in oil and gas properties in the San Juan Basin, with 99.1% of proved reserves as natural gas as of December 31, 2025.

• No Royalty Income was received in 2025 due to significant Excess Production Costs from prior capital projects, particularly two horizontal wells drilled in 2024.

• The trust used cash reserves and a new $2 million line of credit to cover administrative expenses, with cash reserves at $23,298 and $387,808 drawn on the line of credit as of year-end.

• Distributable income for 2025 was negative, and no distributions were made to unitholders after April 2024.

Financial highlights

• Gross proceeds from subject interests rose 50.5% to $73.6 million in 2025, mainly due to new horizontal wells.

• Production costs totaled $60.8 million in 2025, with lease operating expenses and property taxes increasing 8.3% to $33.4 million.

• Capital expenditures decreased to $20.8 million in 2025 from $23.9 million in 2024.

• Distributable income fell to -$387,808 in 2025 from $5.2 million in 2024.

• As of December 31, 2025, cumulative Excess Production Costs were $8.4 million gross ($6.3 million net to the trust).

Outlook and guidance

• Hilcorp's 2026 capital plan includes $14 million in expenditures for 32 projects, with $11.5 million for new drilling (vertical and horizontal), $2 million for recompletions/workovers, and $0.5 million for facilities.

• Completion costs for six new horizontal wells are deferred to 2027.

• The trust will not resume distributions until Excess Production Costs are extinguished, cash reserves are replenished, and the line of credit is repaid.