San Juan Basin Royalty Trust Announces Hilcorp’s 2025 Capital Plan (Form 8-K)

San Juan Basin Royalty Trust Announces Hilcorp's 2025 Capital Plan

DALLAS, Texas, February 13, 2025 - Argent Trust Company, as the trustee (the "Trustee") of the San Juan Basin Royalty Trust (the "Trust") (NYSE: SJT), announced today that the operator of the Trust's subject interests ("Subject Interests"), Hilcorp Energy Company ("Hilcorp") has provided the Trust with its calendar year 2025 capital project plan for the Subject Interests (the "2025 Plan"). Under the 2025 Plan, Hilcorp estimates its 2025 capital expenditures for the Subject Interests to be approximately $9.0 million.

Hilcorp informed the Trust that the 2025 Plan for the Subject Interests includes 29 projects. Approximately $4.0 million of the $9.0 million budget in the 2025 Plan will be allocated to seven new vertical drill projects, all completed in the Dakota/Mesaverde formations. Approximately $4.5 million of the $9.0 million budget will be allocated to 22 projects for recompletions and workovers in the Fruitland Coal formation, and approximately $0.5 million of the $9.0 million budget will be allocated to facilities projects related to natural gas compression and other facility projects. Hilcorp further informed the Trust that its planned project status for 2025 is subject to revision if Hilcorp revises its assumptions underlying the 2025 Plan, and that actual capital costs may vary from these estimates.

For calendar year 2024, Hilcorp projected capital expenditures of approximately $34.0 million. Hilcorp informed the Trust that Hilcorp's actual capital expenditures from January 2024 through November 2024 totaled approximately $33.6 million. Hilcorp reports that approximately $24.6 million was spent on two new horizontal drilling projects in the Mancos formation, approximately $8.0 million was spent on recompletions and workovers, and approximately $1.0 million was spent on facilities projects related to natural gas compression and other facility projects.