When Will San Juan Basin Trust Pay Dividends Again?
The Answer is: Much sooner than expected | The Royalty King's Report
Well it’s Christmas eve and although I wasn’t supposed to be writing today, the house is full of 4 Argentine women screaming at each other hence I have retreated to the sanctity of the studio to bring you an exciting update on one of my most ‘well-known’ individual investment theses.
In order to get up to speed I suggest you read the following:
San Juan Basin Royalty Trust has spent the past two years caught in a perfect storm of weak gas prices and exceptionally heavy operator capital spending. Those forces pushed the Trust into a deep excess-production-cost (EPC) deficit, forcing distributions to be suspended until the balance is fully repaid, the cash reserve is rebuilt, and the line of credit is cleared.
But the latest production data finally gives us a line of sight into when payments may resume and the answer might be far sooner than the market assumes.
