SJT
- San Juan Basin Royalty Trust
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Overview
Company Summary
San Juan Basin Royalty Trust (SJT) is a company that operates as a royalty trust in the energy sector. More specifically, SJT has interests in oil and natural gas properties located in the San Juan Basin in northwestern New Mexico.
SJT's primary activity is to collect and distribute royalty payments generated from the production of oil and natural gas by its underlying working interest owners. These working interest owners, typically oil and gas exploration and production companies, pay royalties to SJT based on their production volume.
The trust, in turn, manages these royalty interests and ensures proper payments are made to the trust's unit holders, who are the beneficiaries of the trust. The amount of royalties paid to unit holders is primarily dependent on the sales prices and production volume of oil and gas, as well as the deductibles outlined in the trust agreement.
SJT does not engage directly in any exploration, drilling, or production activities. Instead, it acts as a pass-through entity, collecting revenues from the working interest owners, deducting any applicable expenses, and distributing the remaining income to its unit holders on a monthly basis.
Investing in SJT provides individuals or institutional investors the opportunity to gain exposure to the oil and gas industry without the complexities and risks associated with direct ownership of production assets. However, it's important to note that investing in royalty trusts like SJT also entails risks such as fluctuating energy prices, changing production levels, and trust-specific factors that may affect the income distributions received by unit holders.