SJT 10-K & 10-Q changes, risk factors and insider trading
San Juan Basin Royalty Trust · NYSE · Oil Royalty Traders · CIK 319655 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “The Units may lose value and cash available for distribution may be reduced as a result of title deficiencies with respect to the Royalty Properties.”
New heading “Hilcorp or any third-party operator may abandon property underlying the Subject Interests, thereby terminating the related Royalty payable to the Trust that is attributable to the abandoned property.”
New heading “Financial information of the Trust is not prepared in accordance with GAAP.”
Largest changes
“Hilcorp or any third-party operator may abandon property underlying the Subject Interests, thereby terminating the related Royalty payable to the Trust that is attributable to the abandoned property.”see in full comparison
“The Units may lose value and cash available for distribution may be reduced as a result of title deficiencies with respect to the Royalty Properties.”see in full comparison
“Financial information of the Trust is not prepared in accordance with GAAP.”see in full comparison
“Hilcorp or any third-party operator of the Underlying Properties could determine during periods of low commodity prices to shut in or curtail production from wells on the properties underlying the Subject Interests or plug and abandon marginal wells that otherwise may have been allowed to continue to produce for a longer period under conditions of higher prices. …”see in full comparison
“The financial statements of the Trust are prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States, or GAAP. Although this basis of accounting is permitted for royalty trusts by the SEC, the financial statements of the Trust differ from GAAP financial statements because revenues are not accrued in the month of production and cash reserves may be established for specified contingencies and deducted which could not be recorded in GAAP financial statements.”see in full comparison
“The existence of a title deficiency with respect to any of the Royalty Properties could reduce the value or render a property worthless, thus adversely affecting the distributions to unitholders. An operator’s inability or failure to cure title defects could cause the operator to lose its rights to some or all production from some of the Royalty Properties, which could result in a reduction in proceeds available for distribution to Unit holders and the value of the Units may be reduced.”see in full comparison
Full comparison: every changed paragraph (12)
political conditions in major oil producing regions, especially in the Middle East and Russia, including the conflicts in Eastern Europe andEurope, the Middle EastEast, and South America;
The Units may lose value and cash available for distribution may be reduced as a result of title deficiencies with respect to the Royalty Properties.
The existence of a title deficiency with respect to any of the Royalty Properties could reduce the value or render a property worthless, thus adversely affecting the distributions to unitholders. An operator’s inability or failure to cure title defects could cause the operator to lose its rights to some or all production from some of the Royalty Properties, which could result in a reduction in proceeds available for distribution to Unit holders and the value of the Units may be reduced.
Hilcorp or any third-party operator may abandon property underlying the Subject Interests, thereby terminating the related Royalty payable to the Trust that is attributable to the abandoned property.
Hilcorp or any third-party operator of the Underlying Properties could determine during periods of low commodity prices to shut in or curtail production from wells on the properties underlying the Subject Interests or plug and abandon marginal wells that otherwise may have been allowed to continue to produce for a longer period under conditions of higher prices. Hilcorp or any other operator may abandon any well or property without the consent of the Trust or the Trust unitholders if it reasonably believes that the well or property can no longer produce oil or natural gas in commercially paying quantities. This could result in termination of the Royalty relating to the abandoned well or property. The properties underlying the Subject Interests are sensitive to decreasing commodity prices. The commodity price sensitivity is due to a variety of factors that vary from well to well, including the costs associated with water handling and disposal, chemicals, surface equipment maintenance, downhole casing repairs and reservoir pressure maintenance activities that are necessary to maintain production. As a result, the volatility of commodity prices may cause the expenses of certain wells to exceed the well’s revenue. If this scenario occurs, Hilcorp or any third-party operator may decide to shut-in the well or plug and abandon the well. This could reduce future cash distributions to Trust Unit Holders.
The Trust will be terminated and the Trustee must sell the Royalty if holders of at least 75% of the Units approve the sale or vote to terminate the Trust, or if the Trust’s gross revenue for each of two successive years is less than $1,000,000 per year. Following any such termination and liquidation, the net proceeds of any sale will be distributed to the Unit Holders and Unit Holders will receive no further distributions from the Trust. The Trustee cannot provide assurances that any such sale will be on terms acceptable to all Unit Holders. The Trustee cannot provide assurances the Trust will receive Royalty Income in 2025 or 2026 as the Trust must first extinguish the balance of Excess Production Costs associated with Hilcorp’s drilling of two horizontal wells during 2024. TheAs of March 20, 2026 the balance of Excess Production Costs as of March 21, 2025 was $21,739,947$6,186,818 gross ($16,304,960$4,640,114 net to the Trust), and the Trust will not receive Royalty Income until the balance of Excess Production Costs (net to the Trust) is paid in full.
Financial information of the Trust is not prepared in accordance with GAAP.
The financial statements of the Trust are prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States, or GAAP. Although this basis of accounting is permitted for royalty trusts by the SEC, the financial statements of the Trust differ from GAAP financial statements because revenues are not accrued in the month of production and cash reserves may be established for specified contingencies and deducted which could not be recorded in GAAP financial statements.
Trump’s policy on oil and gas leasing on federal land is centered on “energy dominance,” aimed at maximizing domestic fossil fuel production by aggressively expanding lease sales and reducing regulatory barriers. Hilcorp has informed the Trust that it does not believe that actions undertaken by President Biden’s administration to curtail future leases for natural gas and oil drilling on federally owned land, to the extent they are not reconsidered by the Trump Administration,land will impact the Subject Interests because, in addition to being undercut by President Trump’s actions, at the present time, they do not impact current leases.
The Biden administration announced in September 2023 that it has moved to shut down future development of oil, gas and mining activity on approximately 4,200 acres in Sandoval County, New Mexico for the next 50 years. On April 18, 2024, Deb Haaland, Secretary of the Interior, issued Public Land Order 7940, protecting this acreage. TheAs of late 2025, the Trump Administrationadministration mayhas revisittaken hissteps order.to Regardless,accelerate oil and gas development in New Mexico, directly impacting Sandoval County by moving to revoke a 20-year ban on drilling near Chaco Culture National Historical Park. This action reverses protections enacted by the Biden administration in 2023, which had established a 10-mile buffer zone around the historic site, part of which lies in Sandoval County. Hilcorp has informed the Trust that the proposed tracts are not within the production area of the Subject Interests or part of any future proposed development plans.
Increased regulation and attention given to the hydraulic fracturing process could lead to greater opposition to, and litigation concerning, oil and natural gas production activities using hydraulic fracturing techniques. Additional legislation or regulation could also lead to operational delays or increased operating costs for operators in the production of oil and natural, including from the developing shale plays, or could make it more difficult for Hilcorp and outside operators to perform hydraulic fracturing. TheAlthough the Trump administration is promoting hydraulic fracturing and expanding oil and gas drilling on federal lands, the adoption of any federal, state or local laws or the implementation of regulations regarding hydraulic fracturing could potentially cause a decrease in Hilcorp’s completion of new oil and natural gas wells on the properties underlying the Subject Interests and an associated decrease in the cash distributable to Trust Unit Holders.
U.S. federal tax reform legislation informally known as the Tax Cuts and Jobs Act (TCJA) was enacted December 22, 2017, and made significant changes to the federal income tax rules applicable to both individuals and entities, including changes to the effective tax rate on a Trust Unit Holder’s allocable share of certain income from the Trust. Many provisions of the TCJA were modified, extended, or otherwise affected by the One, Big, Beautiful Bill Act (“OBBBA”), signed into law on July 4, 2025. The TCJA isand OBBBA are complex and Unit Holders should consult their tax advisor regarding the TCJA and its effect on an investment in Trust Units. In addition, the current administration has generally proposed repealing fossil fuel tax subsidies, which could impact certain tax benefits available to Trust Unit Holders.
Management's Discussion & Analysis (MD&A)
Not available: the section could not be located automatically in both filings (non-standard layout or incorporated by reference). See the original filing. Open the filing on SEC.gov.
What changed in the latest 10-Q
Risk Factors
There have been no material changes in the risk factors disclosed under Part I, Item 1A of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
Not available: the section could not be located automatically in both filings (non-standard layout or incorporated by reference). See the original filing. Open the filing on SEC.gov.
SJT insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
No Form 4 stock transactions in this period.
Well-known investors holding SJT (13F)
None of the 59 investors we track reported a position in their latest 13F.