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San Juan Basin Royalty Trust (SJT) filed Quarterly Report for the period ended 2011-09-30.
San Juan Basin Royalty Trust has a market cap of $1.16 billion; its shares were traded at around $24.98 with a P/E ratio of 16.2 and P/S ratio of 14.5. The dividend yield of San Juan Basin Royalty Trust stocks is 5.9%. San Juan Basin Royalty Trust had an annual average earning growth of 0.4% over the past 10 years.
This is the annual revenues and earnings per share of SJT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SJT.
Highlight of Business Operations:
Royalty income for the quarter ended September 30, 2011 is associated with actual gas and oil production during May 2011 through July 2011 from the Underlying Properties. Gas and oil sales from the Underlying Properties for the three months ended September 30, 2011 and 2010 were as follows:Although BROG was unable to reach agreement with EFS contemporaneously with the WFC contracts on gathering and processing, BROG reported on November 4, 2011 that it has recently signed a new agreement with EFS and that it is working on a summary of that agreement which it will share with the Trust, subject to conditions of confidentiality. The Trustee will continue to monitor this matter as it may relate to the Trust. Confidentiality agreements with gatherers and purchasers of gas produced from the Underlying Properties prohibit public disclosure of certain terms and conditions of gas sales contracts with those entities, including specific pricing terms and gas receipt points. Such disclosure could compromise the ability to compete effectively in the marketplace for the sale of gas produced from the Underlying Properties. Nine Months Ended September 30, 2011 and 2010 For the nine months ended September 30, 2011, the Trust received Royalty income of $48,843,626 and interest income of $685,855. There was no change in cash reserves. After deducting administrative expenses of $1,276,041, distributable income was $48,253,440 ($1.035285 per Unit) for the nine months ended September 30, 2011. For the nine months ended September 30, 2010, the Trust received Royalty income of $63,485,843 and interest income of $216,735. There was no change in cash reserves. After deducting administrative expenses of $1,654,681, distributable income was $62,047,897 ($1.331249 per Unit) for the nine months ended September 30, 2010. The decrease in distributable income from 2010 to 2011 resulted primarily from lower gas prices and increased production costs during the first nine months of 2011. Interest earnings were lower for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010, due primarily to a decrease in funds available for investment and an interest adjustment relating to an audit exception. General and administrative expenses were lower for the nine months ended September 30, 2011, as compared to the same period in 2010, primarily as a result of differences in timing in the receipt and payment of the expenses, but also due to decreased costs associated with the litigation between BROG and the Trust described in Part II, Item I, below, which was settled in April 2010. Capital expenditures incurred by BROG, attributable to the Underlying Properties, for the first nine months of 2011 amounted to approximately $15.8 million. Capital expenditures were approximately $8.7 million for the first nine months of 2010. Lease operating expenses and property taxes for the first nine months of 2011 totaled $26,149,294 and $571,025, respectively, as compared to $23,769,224 and $753,714, respectively, for 2010. In April 2011, BROG reduced its accrual for property taxes from $90,000 per month to $50,000 per month. BROG has reported to the Trustee that during the nine months ended September 30, 2011, 42 gross (6.64 net) conventional wells and five gross (1.04 net) coal seam wells were completed on the Underlying Properties. There were 35 gross (6.26 net) conventional wells completed on the Underlying Properties during the nine months ended September 30, 2010. 10
The decrease in distributable income from 2010 to 2011 resulted primarily from lower gas prices and increased production costs during the first nine months of 2011. Interest earnings were lower for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010, due primarily to a decrease in funds available for investment and an interest adjustment relating to an audit exception.
Royalty income for the nine months ended September 30, 2011 is associated with actual gas and oil production during November 2010 through July 2011 from the Underlying Properties. Gas and oil sales from the Underlying Properties for the nine months ended September 30, 2011 and 2010 were as follows:
The financial statements of the Trust differ from financial statements prepared in accordance with GAAP because revenues are not accrued in the month of production; certain cash reserves may be established for contingencies which would not be accrued in financial statements prepared in accordance with GAAP; expenses are recorded when paid instead of when incurred; and amortization of the Royalty calculated on a unit-of-production basis is charged directly to the Trust corpus instead of as an expense.
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