San Juan Basin Royalty Trust: A Return Scenario That May Rival Anything Else In The Market Today
Source: SeekingAlpha
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. ...
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San Juan Basin Royalty Trust: A Return Scenario That May Rival Anything Else In The Market Today
San Juan Basin Royalty Trust
NASDAQ: SJT
SJT Trading
-1.6% G/L:
$4.9399 Last:
126,118 Volume:
$4.91 Open:
