San Juan Basin Royalty Trust

San Juan Basin Royalty Trust is a grantor trust whose sole business is to hold a 75% net overriding royalty interest in oil and natural gas properties located in the San Juan Basin of New Mexico. Its entire revenue stream is derived from the production and sale of fossil fuels, specifically natural gas and oil, from these properties. The trust's distributions to unitholders are directly tied to the net proceeds from this production, making it a pure-play financial vehicle for fossil fuel extraction.

The trust's operations are conducted by Hilcorp Energy Company, which serves as the working interest owner and operator of the underlying properties. The trust's annual reports detail monthly production volumes and revenues from these assets, with no other business activities or diversification. Its financial viability is entirely dependent on the continued extraction and market pricing of fossil fuels. The New Mexico Energy Transition Act of 2019, which mandates a shift to renewable energy, represents a clear, long-term regulatory risk to this business model, yet the trust has announced no plans to wind down its operations or transition its asset base.