SJT - San Juan Basin Royalty Trust: A Return Scenario That May Rival Anything Else In The Market Today
2025-05-16 08:00:00 ET
Summary
- San Juan Basin Royalty Trust (SJT) currently pays no distribution due to a temporary spike in operator capital expenditures, not due to poor asset quality.
- Production is set to surge nearly 70% as Hilcorp's 2024 capex is recouped, with distributions likely to resume by mid-2025 at attractive yields.
- Natural gas market dynamics are rapidly improving, with rising demand from data centers and LNG exports potentially shifting the market from surplus to deficit.
- At current prices, SJT could deliver a 17% yield upon distribution resumption, offering significant upside and optionality if gas prices rise further.
The following segment was excerpted from the Horizon Kinetics Q1 2025 Commentary. ...
San Juan Basin Royalty Trust: A Return Scenario That May Rival Anything Else In The Market Today