SAN JUAN BASIN ROYALTY TRUST
For the period ended Dec 31, 2024. Filed Mar 31, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Mar 31, 2025
SJT$3.21+6.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2023-12-31; filed 2024-04-01.
0001193125-24-083035
Item 7. TRUSTEE’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2024-12-31; filed 2025-03-31.
0000950170-25-047570
Item 7. TRUSTEE’S DISCU SSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 51 previous paragraphs and 56 current paragraphs.
24 unchanged; 22 reworded; 10 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Revenue in 2023 included an audit settlement payment and related interest for the 2017 through 2020 disputed expenses audit, and revenue related to a February 2023 true-up for documented October 2022 revenues missing from the January 2023 revenue distribution, plus interest.
Current report
In 2024, Production Costs applicable to the Subject Interests exceeded the amount of Gross Proceeds from such properties, resulting in Excess Production Costs. Excess Production Costs must be recovered from future Net Proceeds before Royalty Income is again paid to the Trust. The balance of Excess Production Costs as of December 31, 2024, was $21,248,008 gross ($15,936,006 net to the Trust). As of March 21, 2025, the balance of Excess Production Costs was $21,739,947 gross ($16,304,960 net to the Trust).
Current report
Excess Production Costs. For the year ended December 31, 2024, Production Costs exceeded Gross Proceeds by $21,248,008 ($15,936,006 net to the trust). The cumulative balance of Excess Production Costs as of December 31, 2024 was$21,248,008 ($15,936,006 net to the trust). There were no Excess Production Costs for the year ended December 31, 2023 and there was no cumulative balance of Excess Production Costs as of December 31, 2023. The Conveyance provides that any Excess Production Costs applicable to the Subject Interests over the amount of Gross Proceeds from such properties must be recovered from future Net Proceeds before Royalty Income is again paid to the Trust. The Trust is not obligated to reimburse Hilcorp for any Excess Production Costs if future Gross Proceeds from the Subject Interests are insufficient to cover such costs. As such, the cumulative balance of Excess Production Costs as of December 31, 2024, is to be recovered in future periods when the Gross Proceeds exceed Production Costs for such period.
Current report
(1) This amount reflects net cash reserve activity in 2024. Total cash reserves available to pay administrative expenses were $760,919 as of December 31, 2024. The Trustee increased the cash reserves in March and April of 2024, such that total cash reserves were $1,800,000 as of April 30, 2024. Cash reserves of $1,039,081, along with interest income, were then utilized to pay the balance of Trust administrative expenses remaining (after applying interest income) each month from May through December 2024, when the Trust did not receive any Royalty Income.
Current report
In each of the months from May 2024 through December 2024, the Trust did not receive any Royalty Income, and interest income received was insufficient to pay Trust liabilities. Since the Trust did not receive Royalty Income from Hilcorp and interest income was insufficient to pay the Trust’s liabilities during the period from May 2024 through December 2024, the Trust was able to use cash reserves to pay the Trust’s liabilities. The Trust expects to continue to draw on cash reserves for all Trust liabilities not covered by interest income until such time as the Trust begins receiving Royalty Income again. The Trust is permitted to borrow funds against the Royalty to cover the Trust’s operating expenses until such time as the Trust extinguishes the balance of Excess Production Costs incurred in 2024 and receives sufficient Royalty Income to replenished cash reserves. The cash reserve balance was $760,919 on December 31,
Current report
As of March 21, 2025, the balance of cash reserves held by the Trust to cover Trust liabilities was $258,521. The Trustee, on behalf of the Trust, is currently evaluating commercial lending options available to the Trust to cover the Trust’s liabilities once cash reserves are depleted.
Current report
The anticipated deficit in income to pay the Trust’s liabilities described above raises substantial doubt about the Trust’s ability to continue as a going concern within one year after issuance date of the financial statements. The Trustee, on behalf of the Trust, is currently evaluating commercial lending options available to the Trust to cover the Trust’s liabilities once cash reserves are depleted.
Current report
The accompanying financial statements have been prepared assuming that the Trust will continue as a going concern; however, the above conditions raise substantial doubt about the Trust’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Trust be unable to continue as a going concern.
Current report
Cash Reserves. Total cash reserves were $760,919 as of December 31, 2024. The Trustee is authorized to determine, in its discretion, the amount of cash reserves needed to cover liabilities and contingencies of the Trust. The Trustee previously maintained a cash reserve in the amount of $1,000,000. However, to cover Trust Expenses during any period of revenue shortfall, which has resulted and could continue to result from lower commodity prices or capital expenditures under Hilcorp's 2025 project plan for the Subject Interests, the Trustee increased the cash reserves in March and April of 2024, such that total cash reserves were $1,800,000 as of April 30, 2024. Cash reserves of $1,039,080, along with interest income, were utilized to pay the balance of Trust administrative expenses remaining (after applying interest income) each month from May through December 2024, when the Trust did not receive any Royalty Income. Prior to any distributions to Unitholders, the Trustee plans to replenish the cash reserves and continue to increase the cash reserves to $2,000,000.
Current report
For the three months ended December 31, 2024, there was no Distributable Income. This is a decrease from $3.6 million ($0.077927 per Unit) in Distributable Income for the three months ended December 31, 2023. The decrease in Distributable Income in the fourth quarter of 2024 compared to the fourth quarter of 2023 was due primarily to substantially higher capital project spending associated with Hilcorp's 2024 capital plan.
Removed paragraphs (5)
Previous report
In the event the Trust does not receive sufficient Royalty Income from Hilcorp, the Trust believes it has sufficient capacity to draw upon the cash reserve amount or borrow funds against the Royalty to cover the Trust’s operating expenses for the following 12-month period.
Previous report
*Cash Reserves.*Total cash reserves did not change in 2023. Total cash reserves were $1.0 million as of December 31, 2022 and 2023. The Trustee is authorized to determine in its discretion the amount of cash reserves needed to pay liabilities and contingencies of the Trust. The Trustee anticipates increasing the established amount of cash reserves to $2.0 million in 2024, in response to the substantial increase in capital expenditures projected by Hilcorp for 2024 (under Hilcorp’s 2024 Plan) and the potential that such increase materially reduces or eliminates distributions to the Trust for a period of time.
Previous report
For the three months ended December 31, 2023, Distributable Income decreased to $3.6 million ($0.077927 per Unit), or 88%, as compared to $28.8 million ($0.617388 per Unit) for the three months ended December 31, 2022.
Previous report
The decrease in Distributable Income in the fourth quarter of 2023 compared to the fourth quarter of 2022 was primarily attributed to decreased production and lower revenue due to lower natural gas pricing in the fourth quarter of 2023, and to higher revenue from sales of natural gas and oil and certain adjustment payments received from Hilcorp in the fourth quarter of 2022 as discussed below.
Previous report
In the October 2022 reporting month, the Trust received $10,078,805 in other revenues and interest related to adjustments associated with Hilcorp process reviews. In the December 2022 reporting month, other revenue was reduced by $497,181 to correct the prior month’s settlement differences and related interest. Hilcorp has informed the Trustee that it has implemented additional controls to enhance the reporting process and reduce the need for future corrections.
Reworded paragraphs (22)
Previous wording
The amount of Gross Proceeds attributable to the Subject Interests depends on prevailing natural gas prices and, to a lesser extent, crude oil prices. As a result, commodity prices affect the amount of Royalty Income available for distribution to the Unit Holders. During 2023, the price of natural gas Gross Proceeds for production from the Subject Interests decreased from an average price for natural gas of $5.54 per Mcf in 2022 to $4.69 per Mcf in 2023. The price for oil Gross Proceeds decreased from an average price of $86.73 per Bbl in 2022 to $66.34 per Bbl in 2023.
Current wording
The amount of Gross Proceeds attributable to the Subject Interests depends on prevailing natural gas prices and, to a lesser extent, crude oil prices. As a result, commodity prices affect the amount of Royalty Income available for distribution to the Unit Holders. During 2024, the price of natural gas Gross Proceeds for production from the Subject Interests decreased from an average price for natural gas of $4.69 per Mcf in 2023 to $2.07 per Mcf in 2024. The price for oil Gross Proceeds increased from an average price of $66.34per Bbl in 2023 to $68.07 per Bbl in 2024.
Previous wording
On February 16, 2024, the Trust announced that Hilcorp had provided the Trust with its 2024 capital project plan for the Subject Interests (the “2024 Plan”), and Hilcorp has estimated its 2024 capital expenditures for the Subject Interests to be $36.0 million. This plan was updated on March 6, 2024, with a reduction of approximately $2.0 million, bringing the total estimate of 2024 capital expenditures to $34.0 million.
Current wording
On February 13, 2025, the Trust announced that Hilcorp had provided the Trust with its 2025 capital project plan for the Subject Interests (the “2025 Plan”), and Hilcorp has estimated its 2025 capital expenditures for the Subject Interests to be $9.0 million.
Previous wording
Hilcorp informed the Trust that its 2024 Plan will allocate approximately $25.0 million of the 2024 Plan’s budget toward two drilling projects in the Mancos formation. Approximately $8.0 million of the 2024 Plan’s budget will be allocated to 36 well recompletions and workovers scheduled to be completed in the Mesaverde and Fruitland Coal formations. Approximately $1.0 million of the 2024 Plan’s budget will be allocated to facilities projects related to natural gas compression. Hilcorp further informed the Trust that its planned project status for 2024 is subject to revision if Hilcorp revises its assumptions underlying the 2024 Plan, in which event the actual capital costs may vary from these estimates.
Current wording
Hilcorp informed the Trust that its 2025 Plan for the Subject Interests includes 29 projects. Approximately $4.0 million of the $9.0 million budget in the 2025 Plan will be allocated to seven new vertical drill projects, all completed in the Dakota/Mesa Verde formations. Approximately $4.5 million of the $9.0 million budget will be allocated to 22 projects for recompletions and workovers in the Fruitland Coal formation, and approximately $0.5 million of the $9.0 million budget will be allocated to facilities projects related to natural gas compression and other facility projects. Hilcorp further informed the Trust that its planned project status for 2025 is subject to revision if Hilcorp revises its assumptions underlying the 2025 Plan, and that actual capital costs may vary from these estimates.
Previous wording
Under the terms of the Conveyance, production costs are deducted from Gross Proceeds in calculating Royalty Income. “Production costs” generally means costs incurred on an accrual basis by Hilcorp in operating the Subject Interests, including both capital andnon-capital costs. For example, these costs include development drilling, production and processing costs, applicable taxes and operating charges. However, Hilcorp informed the Trust that, for wells operated by Hilcorp, it generally did not intend to accrue lease operating expenses to the Trust. If production costs exceed Gross Proceeds in any month, the excess is recovered out of future Gross Proceeds prior to the making of further payment to the Trust, but the Trust is not otherwise liable for any production costs or other costs or liabilities attributable to the Subject Interests or the minerals produced therefrom. If at any time the Trust receives more than the amount due under the Royalty, it is not obligated to return such overpayment, but the amounts payable to it for any subsequent period are reduced by such amount, plus interest, at a rate specified in the Conveyance. The Trust and the Trustee has very limited authority to control the amount and timing of production costs.
Current wording
Under the terms of the Conveyance, production costs are deducted from Gross Proceeds in calculating Royalty Income. “Production costs” generally means costs incurred on an accrual basis by Hilcorp in operating the Subject Interests, including both capital and non-capital costs. For example, these costs include development drilling, production and processing costs, applicable taxes and operating charges. However, Hilcorp informed the Trust that, for wells operated by Hilcorp, it generally did not intend to accrue lease operating expenses to the Trust. If production costs exceed Gross Proceeds in any month, the excess is recovered out of future Gross Proceeds prior to the making of further payment to the Trust, but the Trust is not otherwise liable for any production costs or other costs or liabilities attributable to the Subject Interests or the minerals produced therefrom. If at any time the Trust receives more than the amount due under the Royalty, it is not obligated to return such overpayment, but the amounts payable to it for any subsequent period are reduced by such amount, plus interest, at a rate specified in the Conveyance. The Trust and the Trustee has very limited authority to control the amount and timing of production costs.
Previous wording
The Trustee is authorized to determine in its discretion the amount of cash reserves needed to pay liabilities and contingencies of the Trust. Total cash reserves were $1.0 million as of December 31, 2022, and 2023. The Trustee anticipates increasing the established amount of cash reserves to $2.0 million in 2024, in response to the substantial increase in capital expenditures projected by Hilcorp for 2024 (under Hilcorp’s 2024 Plan) and the potential that such increase materially reduces or eliminates distributions to the Trust for a period of time.
Current wording
The Trustee is authorized to determine in its discretion the amount of cash reserves needed to pay liabilities and contingencies of the Trust. Total cash reserves were $0.8 million and $1.0 million as of December 31, 2024, and December 31, 2023. The Trustee plans to increase the established amount of cash reserves to $2.0 million.
Previous wording
Gross Proceeds and Severance Tax Estimates. Hilcorp began their transition to a new accounting system effective with January 2021 production (March 2021 reporting month), and initially reported estimated revenues and severance taxes on the distributions to the Trust. Hilcorp informed the Trust that it completed the transition to its new accounting system and began to report actual, not estimated, revenue and expenses for operated wells beginning with the June 2021 production month (August 2021 reporting month). Hilcorp’s process of reconciling actual revenue and severance taxes to the previously reported estimates, and the reversal and rebooking of the actualized revenues for 2021 production months fornon-operated properties, was completed in the February and March 2022 reporting months.
Current wording
Gross Proceeds and Severance Tax Estimates. Hilcorp began their transition to a new accounting system effective with January 2021 production (March 2021 reporting month), and initially reported estimated revenues and severance taxes on the distributions to the Trust. Hilcorp informed the Trust that it completed the transition to its new accounting system and began to report actual, not estimated, revenue and expenses for operated wells beginning with the June 2021 production month (August 2021 reporting month). Hilcorp’s process of reconciling actual revenue and severance taxes to the previously reported estimates, and the reversal and rebooking of the actualized revenues for 2021 production months for non-operated properties, was completed in the February and March 2022 reporting months.
Previous wording
In January 2023, Hilcorp notified the Trust that the accounting project, begun in 2021 to review the production volume allocations for 2017 through 2020, had been completed. These reallocations affected the volumes for many of the Trust properties and may result in future revisions to previously reported revenues and severance taxes. On February 17, 2023, Hilcorp presented initial proposed adjustments for 2017 revenues. The Trustee continues to engage with Hilcorp regarding its ongoing accounting and reporting to the Trust, and the Trust’s third-party compliance auditors continue to audit payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. The Trust’s auditing process has also included detailed analysis of Hilcorp’s pricing and rates charged. As previously disclosed in the Trust’s filings, these revenues and costs (along with all costs) are the subject of the Trust’s ongoing comprehensive audit process by the Trust’s professional consultants and outside counsel to ensure full compliance with all the underlying operative Trust agreements and evaluating all available remedies in the event there is evidenceof non-compliance.
Current wording
In January 2023, Hilcorp notified the Trust that the accounting project, begun in 2021 to review the production volume allocations for 2017 through 2020, had been completed. These reallocations affected the volumes for many of the Trust properties and may result in future revisions to previously reported revenues and severance taxes. On February 17, 2023, Hilcorp presented initial proposed adjustments for 2017 revenues. The Trustee continues to engage with Hilcorp regarding its ongoing accounting and reporting to the Trust, and the Trust’s third-party compliance auditors continue to audit payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. The Trust’s auditing process has also included detailed analysis of Hilcorp’s pricing and rates charged. As previously disclosed in the Trust’s filings, these revenues and costs (along with all costs) are the subject of the Trust’s ongoing comprehensive audit process by the Trust’s professional consultants and outside counsel to ensure full compliance with all the underlying operative Trust agreements and evaluating all available remedies in the event there is evidence of non-compliance.
Previous wording
*Gross Proceeds from Subject Interests.*Gross Proceeds decreased $35.1 million, or 23.5%, to $114.5 million for the year ended December 31, 2023, as compared to $149.6 million for the year ended December 31, 2022. The decrease was due primarily to lower natural gas prices.
Current wording
Gross Proceeds from Subject Interests. Gross Proceeds decreased $65.5 million, or 57.3%, to $48.9 million for the year ended December 31, 2024, as compared to $114.5 million for the year ended December 31, 2023. The decrease was due primarily to lower natural gas prices.
Previous wording
Capital Expenditures. The capital expenditures reported by Hilcorp for 2023 included amounts attributable to the capital budgets for prior years because capital expenditures are deducted in calculating Net Proceeds in the month they accrue, and projects within a given year’s budget often extend into subsequent years. With respect to any wells operated by third parties other than Hilcorp, Hilcorp’s share, if any, of capital expenditures for the year ended December 31, 2023, may not be paid until 2024 or later. For a summary of Hilcorp’s planned 2024 capital expenditures, see Liquidity and Capital Resources.
Current wording
Capital Expenditures. The capital expenditures reported by Hilcorp for 2024 included amounts attributable to the capital budgets for prior years because capital expenditures are deducted in calculating Net Proceeds in the month they accrue, and projects within a given year’s budget often extend into subsequent years. Hilcorp’s capital expenditures incurred in November and December 2024 will be included in amounts reported next year for 2025 as capital expenditures are deducted in calculating Net Proceeds in the month they accrue, and projects within Hilcorp’s 2024 capital budget extended into early 2025. Further, with respect to any wells operated by third parties other than Hilcorp, Hilcorp’s share, if any, of capital expenditures for the year ended December 31, 2024, may not be paid until 2024 or later. For a summary of Hilcorp’s planned 2024 capital expenditures, see Liquidity and Capital Resources.
Previous wording
Capital expenditures increased approximately $1.2 million, or 123.4%, to $2.2 million for the year ended December 31, 2023, as compared to $1.0 million for the year ended December 31, 2022. Hilcorp allocated its 2023 capital spending primarily toward well recompletions and workovers. Hilcorp did not conduct any new drill projects within the Subject Interests in 2023.
Current wording
Capital expenditures increased approximately $21.7 million to $23.9 million for the year ended December 31, 2024, as compared to $2.2 million for the year ended December 31, 2023. Hilcorp allocated its 2024 capital spending primarily toward drilling two new horizontal wells.
Previous wording
*Severance Taxes.*Aggregate severance taxes decreased $3.1 million, or 18.3%, to $13.9 million for the year ended December 31, 2023, as compared to $17.1 million for the year ended December 31, 2022. The decrease was primarily attributable to lower revenue in 2023.
Current wording
Severance Taxes. Aggregate severance taxes decreased $7.8 million to $6.1 million for the year ended December 31, 2024, as compared to $13.9 million for the year ended December 31, 2023. The decrease was primarily attributable to lower revenue in 2024.
Previous wording
Lease Operating Expenses and Property Taxes.Lease operating expenses and property taxes increased $1.1 million, or 4.3%, to $27.3 million for the year ended December 31, 2023, as compared to $26.2 million for the year ended December 31, 2022. Monthly **lease operating expenses of the Subject Interests, including property taxes, in 2023 averaged approximately $2.3 million, compared to $2.2 million in 2022. The increase is primarily due to repairs, maintenance, recompletes, and workovers.
Current wording
Lease Operating Expenses and Property Taxes. Lease operating expenses and property taxes increased $3.5 million, or 12.7%, to $30.8 million for the year ended December 31, 2024, as compared to $27.3 million for the year ended December 31, 2023. Monthly lease operating expenses of the Subject Interests, including property taxes, in 2024 averaged approximately $2.6 million, compared to $2.3 million in 2023. The increase is primarily due to repairs, maintenance, recompletes, and workovers.
Previous wording
Distributable Income decreased $26.0 million, or 33.5%, to $51.6 million ($1.107901 per Unit) for the year ended December 31, 2023, as compared to $77.6 million ($1.664908 per Unit) for the year ended December 31, 2022. The decrease in Distributable Income from 2022 to 2023 was primarily attributable to lower natural gas prices, which resulted in decreased Royalty Income in 2023.
Current wording
Distributable Income decreased $46.5 million to $5.2 million ($0.110671 per Unit) for the year ended December 31, 2024, as compared to $51.6 million ($1.107901 per Unit) for the year ended December 31, 2023. The decrease in Distributable Income from 2023 to 2024 was primarily attributable to significantly increased capital expenditures and a decline in natural gas prices.
Previous wording
*Interest Income.*Interest Income in 2023 increased as compared to 2022 due to higher yields on short-term investments.
Current wording
Interest Income. Interest Income in 2024 decreased as compared to 2023 due to less funds being available for investment.
Previous wording
General*** & Administrative Expenses.General and administrative expenses increased $0.28 million, or 19%, to $1.75 million for the year ended December 31, 2023, as compared to $1.5 million for the year ended December 31, 2022. The increase was primarily attributable to differences in timing in the receipt and payment of certain expenses by the Trust, as well as to costs associated with the proxy solicitation process and Unit Holder meetings.*
Current wording
General & Administrative Expenses. General and administrative expenses increased $0.36 million to $2.11 million for the year ended December 31, 2024, as compared to $1.75 million for the year ended December 31, 2023. The increase was primarily attributable to differences in timing in the receipt and payment of certain expenses by the Trust, as well as expenses in the first half of 2024 associated with the transition to Argent Bank as Trustee of the Trust.
Previous wording
On February 16, 2024, the Trust announced that Hilcorp had provided the Trust with its 2024 capital project plan for the Subject Interests (the “2024 Plan”), and Hilcorp has estimated its 2024 capital expenditures for the Subject Interests to be $36.0 million. This plan was updated on March 6, 2024, with a reduction of approximately $2.0 million, bringing the total estimate of 2024 capital expenditures to $34.0 million.
Current wording
On February 13, 2025, the Trust announced that Hilcorp had provided the Trust with its 2025 capital project plan for the Subject Interests (the “2025 Plan”), and Hilcorp has estimated its 2025 capital expenditures for the Subject Interests to be approximately $9.0 million.
Previous wording
Hilcorp informed the Trust that its 2024 Plan will allocate approximately $25.0 million of the 2024 Plan’s budget toward two drilling projects in the Mancos formation. Approximately $8.0 million of the 2024 Plan’s budget will be allocated to 36 well recompletions and workovers scheduled to be completed in the Mesaverde and Fruitland Coal formations. Approximately $1.0 million of the 2024 Plan’s budget will be allocated to facilities projects related to natural gas compression. Hilcorp further informed the Trust that its planned project status for 2024 is subject to revision if Hilcorp revises its assumptions underlying the 2024 Plan, in which event the actual capital costs may vary from these estimates.
Current wording
Hilcorp informed the Trust that its 2025 Plan for the Subject Interests includes 29 projects. Approximately $4.0 million of the $9.0 million budget in the 2025 Plan will be allocated to seven new vertical drill projects, all completed in the Dakota/Mesa Verde formations. Approximately $4.5 million of the $9.0 million budget will be allocated to 22 projects for recompletions and workovers in the Fruitland Coal formation, and approximately $0.5 million of the $9.0 million budget will be allocated to facilities projects related to natural gas compression and other facility projects. Hilcorp further informed the Trust that its planned project status for 2025 is subject to revision if Hilcorp revises its assumptions underlying the 2025 Plan, and that actual capital costs may vary from these estimates.
Previous wording
Results of the 4th Quarters of 2023 and 2022
Current wording
Results of the 4 th Quarters of 2024 and 2023
Previous wording
The average price of gas decreased in the fourth quarter of 2023 compared to the same period of 2022 by $3.95 per Mcf. The average price per barrel of oil during the fourth quarter of 2023 was $7.47 lower than the price during the fourth quarter of 2022.
Current wording
The average price of gas decreased in the fourth quarter of 2024 compared to the same period of 2023 by $0.87 per Mcf. The average price per barrel of oil during the fourth quarter of 2024 was $7.35 lower than the price during the fourth quarter of 2023.
Previous wording
Capital costs for the fourth quarter of 2023 totaled approximately $1.6 million as compared to approximately $0.7 million in the fourth quarter of 2022. The increased capital costs in the fourth quarter of 2023 were primarily due to workovers and recompletion projects.
Current wording
Capital costs for the fourth quarter of 2024 totaled approximately $11.5 million as compared to approximately $1.6 million in the fourth quarter of 2023. The increased capital costs in the fourth quarter of 2024 were primarily due to costs associated with the two horizontal wells drilled as part of Hilcorp's 2024 development plan.
Previous wording
Lease operating expenses and property taxes for the fourth quarter of 2023 averaged $2.3 million per month compared to $2.1 million per month in the fourth quarter of 2022. Lease operating expenses and property taxes were higher in the fourth quarter of 2023 than for the fourth quarter of 2022 due primarily to repairs and maintenance in preparation for winter 2023 andnon-operated joint interest billing actualizations.
Current wording
Monthly lease operating expenses for the fourth quarter of 2024 averaged $7.5 million per month compared to $2.3 million per month in the fourth quarter of 2023. Lease operating expenses were higher in the fourth quarter of 2024 than for the fourth quarter of 2023 due primarily to repairs and maintenance in preparation for winter 2023 and non-operated joint interest billing actualizations.
Previous wording
Based on 46,608,796 Units outstanding, theper-Unit distributions during the fourth quarters of 2023 and 2022 were as follows:
Current wording
Based on 46,608,796 Units outstanding, the per-Unit distributions during the fourth quarters of 2024 and 2023 were as follows: