On March 20, 2026, the San Juan Basin Royalty Trust (the "Trust") announced that it will not declare a monthly cash distribution to the holders of its units of beneficial interest for March 2026. This decision is attributed to excess production costs incurred during prior periods for the Trust's royalty interests, as well as continued low natural gas pricing. The cumulative excess production costs currently stand at approximately $6,186,819 gross, which is a decrease of $2,051,072 gross from the previous month. The Trust will not receive royalty income until these costs are fully repaid, as all net proceeds will be applied to the balance of excess production costs. The Trust's trustee, Argent Trust Company, indicated that no cash distributions will be made until future net proceeds are sufficient to cover the repayment of excess production costs, replenish a reserve of $2,000,000, and repay the principal and interest on the Trust's line of credit. Hilcorp, the operator, reported total revenue of $6,352,562 from the Trust's interests for January 2026, with production costs reported at $4,301,489. The average gas price for January 2026 was $2.96 per Mcf, a decrease from the previous month. The Trust's administrative expenses for the month totaled $187,019, and the Trust continues to engage with Hilcorp regarding its accounting and reporting. The Trust's auditing process includes a comprehensive review of Hilcorp's pricing and rates charged. The Trust has also self-published its monthly press releases on its website due to the depletion of cash reserves and conservation of resources.

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