SJT Fails to Distribute Income Amid High Costs, Low Gas Prices

San Juan Basin Royalty Trust (SJT), a trust that owns royalties from natural gas production in the San Juan Basin, has faced significant financial challenges. According to its latest SEC 10-Q quarterly report filed on August 13, 2026, the trust did not make any royalty income or distributions between May 2024 and June 2026 due to excess production costs and low natural gas prices.

The result was negative distributable income and depleted cash reserves. To cover expenses, SJT relied on a line of credit, raising substantial doubt about its ability to continue as a going concern. This warning is a red flag for investors who may be concerned about the trust's long-term sustainability.