SAN JUAN BASIN ROYALTY TRUST

Previous 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. As of June 30, 2025, Hilcorp has spent $5.76 million of the $9.0 million budgeted under the 2025 Plan.

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. As of September 30, 2025, Hilcorp advised the Trust that it has spent $7.70 million of the $9.0 million budgeted under the 2025 Plan.

Previous 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. Hilcorp advised the Trustee that there were 18 workover wells completed, two new wells completed, and one new well in progress during the three months ended June 30, 2025.

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. Hilcorp advised the Trustee that there were 12 workover wells completed, three new wells completed, and one new well in progress during the three months ended September 30, 2025.

Previous wording

Capital Expenditures. The timing and size of capital expenditures by Hilcorp have impacted and continue to impact Net Proceeds. Hilcorp’s capital expenditures were $2,509,627 and $16,556,987 for the three and six months ended June 30, 2025, respectively. This reflects an increase of $1,679,755 and $14,736,321 for the three and six months ended June 30, 2025, respectively, when compared to the same periods in 2024. These increases were primarily attributable to a substantially higher capital project spending related to Hilcorp's drilling of two new horizontal wells.

Current wording

Capital Expenditures. The timing and size of capital expenditures by Hilcorp have impacted and continue to impact Net Proceeds. Hilcorp’s capital expenditures were $3,941,821 and $50,509,986 for the three and nine months ended September 30, 2025, respectively. This reflects a decrease of $6,947,777 for the three months ended September 30, 2025 and an increase of $7,788,545 for the nine months ended September 30, 2025, respectively, when compared to the same periods in 2024. These differentials were primarily attributable to a substantially higher capital project spending related to Hilcorp's drilling of two new horizontal wells in 2024, costs of which extended into the early part of 2025.

Previous wording

Excess Production Costs. Excess Production Costs (“Excess Production Costs”) occur when Production Costs (including capital expenditures and lease operating expenses) exceed the Gross Proceeds for a certain period. In 2024 and the first half of 2025, Excess Production Costs accrued due to significant lease operating expenses and capital expenditures associated with Hilcorp’s drilling of two new horizontal wells. The balance of Excess Production Costs was $14,767,940 ($11,075,955 net to the Trust) and $21,739,947 ($16,304,960 net to the Trust) as of June 30, 2025 and March 31, 2025, respectively. Hilcorp will not pay Royalty Income to the Trust, until the balance of Excess Production Costs is paid in full. Further, no cash distribution will be made by the Trust until (a) the balance of Excess Production Costs is paid in full, (b) the Trustee replenishes a cash reserve in the amount of $2,000,000, and (c)the Trust repays the Note in full.

Current wording

Excess Production Costs. Excess Production Costs (“Excess Production Costs”) occur when Production Costs (including capital expenditures and lease operating expenses) exceed the Gross Proceeds for a certain period. In 2024 and the first half of 2025, Excess Production Costs accrued due to significant lease operating expenses and capital expenditures associated with Hilcorp’s drilling of two new horizontal wells. The balance of Excess Production Costs was $13,593,734 ($10,195,300 net to the Trust) as of September 30, 2025. Hilcorp will not pay Royalty Income to the Trust, until the balance of Excess Production Costs is paid in full. Further, no cash distribution will be made by the Trust until (a) the balance of Excess Production Costs is paid in full, (b) the Trustee replenishes a cash reserve in the amount of $2,000,000, and (c)the Trust repays the Note in full.

Previous wording

Results of Operations – for the Three and Six Months Ended June 30, 2025 and 2024

Current wording

Results of Operations – for the Three and Nine Months Ended September 30, 2025 and 2024

Previous wording

Royalty Income. Royalty Income consists of 75% of the monthly Net Proceeds attributable to the Royalty. Royalty Income for the three and six months ended June 30, 2025, and 2024 was determined as shown in the following table:

Current wording

Royalty Income. Royalty Income consists of 75% of the monthly Net Proceeds attributable to the Royalty. Royalty Income for the three and nine months ended September 30, 2025, and 2024 was determined as shown in the following table:

Previous wording

Net proceeds of $6,972,006 for the three months ended June 30, 2025 ($6,480,068 for the six months ended June 30, 2025), 75% of which would otherwise be payable to the Trust as Royalty Income, were applied to the balance of Excess Production Costs. The balance of cumulative Excess Production Costs, as of June 30, 2025, was approximately $14,767,940 gross ($11,075,955 net to the Trust). The Conveyance provides that any Excess Production Costs applicable to the Subject Interests over 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.

Current wording

Net proceeds of $1,174,206 for the three months ended September 30, 2025 ($7,654,275 for the nine months ended September 30, 2025), 75% of which would otherwise be payable to the Trust as Royalty Income, were applied to the balance of Excess Production Costs. The balance of cumulative Excess Production Costs, as of September 30, 2025, was approximately $13,593,734 gross ($10,195,300 net to the Trust). The Conveyance provides that any Excess Production Costs applicable to the Subject Interests over 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.

Previous wording

There was no Royalty Income distributed to the Trust for the three and six months ended June 30, 2025. Royalty income of $1,854,915 and $6,945,974 was distributed for the three and six months ended June 30, 2024, respectively. The decrease in Royalty Income was due primarily to substantially higher capital project spending associated with Hilcorp's drilling of two new horizontal wells. The average natural gas price increased from $1.92 per Mcf for the three months ended June 30, 2024, to $2.42 per Mcf for the three months ended June 30, 2025. The average natural gas price increased from $2.56 per Mcf for the six months ended June 30, 2024 to $3.08 per Mcf for the six months ended June 30, 2025. Production of natural gas from the Subject Interests increased from 5,457,753 Mcf for the three months ended June 30, 2024, to 7,085,582 Mcf for the three months ended June 30, 2025. Production of natural gas from the Subject Interests also increased from 11,052,769 Mcf for the six months ended June 30, 2024 to 14,706,475 Mcf for the six months ended June 30, 2025.

Current wording

There was no Royalty Income distributed to the Trust for the three and nine months ended September 30, 2025. There was no Royalty income distributed for the three months ended September 30, 2024 and $6,945,974 of Royalty Income was distributed for the nine months ended September 30, 2024. The decrease in Royalty Income was due primarily to substantially higher capital project spending associated with Hilcorp's drilling of two new horizontal wells in 2024, the costs of which extended into the early part of 2025. The average natural gas price increased from $1.49 per Mcf for the three months ended September 30, 2024, to $2.11 per Mcf for the three months ended September 30, 2025. The average natural gas price increased from $2.20 per Mcf for the nine months ended September 30, 2024 to $2.63 per Mcf for the nine months ended September 30, 2025. Production of natural gas from the Subject Interests increased from 5,691,025 Mcf for the three months ended September 30, 2024, to 6,918,497 Mcf for the three months ended September 30, 2025. Production of natural gas from the Subject Interests also increased from 16,743,796 Mcf for the nine months ended September 30, 2024 to 21,624,972 Mcf for the nine months ended September 30, 2025.

Previous wording

Gross Proceeds from Subject Interests. Total Gross Proceeds increased approximately $8.1 million, or 72.3%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. Total Gross Proceeds increased approximately $13.6 million or 46.2% for the six months ended June 30, 2025 compared to the same time period in 2024. The increases were primarily due to slightly higher natural gas prices and higher production volumes, mainly attributable to the two new horizontal wells installed in 2024.

Current wording

Gross Proceeds from Subject Interests. Total Gross Proceeds increased approximately $5.8 million, or 62.1%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Total Gross Proceeds increased approximately $19.4 million or 50.0% for the nine months ended September 30, 2025 compared to the same time period in 2024. The increases were primarily due to slightly higher natural gas prices and higher production volumes, mainly attributable to the two new horizontal wells installed in 2024.

Previous wording

Capital Expenditures. The timing and size of capital expenditures by Hilcorp have and will continue to impact Net Proceeds. Hilcorp's capital expenditures increased $1,679,755 for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, and increased $14,736,321 for the six months ended June 30, 2025, compared to the same time period in 2024. The increase in capital costs in the three-month period ended June 30, 2025 was primarily attributable to Hilcorp's 2025 Plan (as defined below). The increase in capital costs in the six-month period was primarily attributable to Hilcorp's significantly higher capital project spending related to drilling two new horizontal wells in 2024.

Current wording

Capital Expenditures. The timing and size of capital expenditures by Hilcorp have and will continue to impact Net Proceeds. Hilcorp's capital expenditures decreased $6,947,777 for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, and increased $7,788,545 for the nine months ended September 30, 2025, compared to the same time period in 2024. The decrease in capital costs in the three-month period ended September 30, 2025 was primarily attributable to the reduced expenditures under Hilcorp's 2025 Plan (as defined below). The increase in capital costs in the nine-month period was primarily attributable to Hilcorp's significantly higher capital project spending related to drilling two new horizontal wells in 2024, the costs of which extended into the early part of 2025.

Previous 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 estimate in the 2025 Plan will be allocated to seven new vertical drill projects, all to be completed in the Dakota/Mesa Verde formations. Approximately $4.5 million of the $9.0 million estimate 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 estimate 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. As of June 30, 2025, Hilcorp has spent $1.25 million of the $5.76 million estimated under the 2025 Plan.

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 estimate in the 2025 Plan will be allocated to seven new vertical drill projects, all to be completed in the Dakota/Mesa Verde formations. Approximately $4.5 million of the $9.0 million estimate 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 estimate 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. As of September 30, 2025, Hilcorp advised the Trust that it has spent $7.70 million of the $9.0 million budgeted under the 2025 Plan.

Previous wording

Severance Taxes. Aggregate severance taxes increased approximately $0.2 million, or 16%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and increased approximately $0.01 million or 0.3% for the six months ended June 30, 2025 compared to the same time period during 2024. The increase was primarily attributable to higher Gross Proceeds. Severance taxes represented approximately 8% of Gross Proceeds for the three months ended June 30, 2025 compared to approximately 12% for the same period of 2024. Severance taxes represented approximately 9% of Gross Proceeds for the six months ended June 30, 2025 and approximately 13% for the same period of 2024.

Current wording

Severance Taxes. Aggregate severance taxes increased approximately $0.5 million, or 48%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 and increased approximately $0.56 million or 11.3% for the nine months ended September 30, 2025 compared to the same time period during 2024. The increase was primarily attributable to higher Gross Proceeds. Severance taxes represented approximately 11.2% of Gross Proceeds for the three months ended September 30, 2025 compared to approximately 12.2% for the same period of 2024. Severance taxes represented approximately 9.5% of Gross Proceeds for the nine months ended September 30, 2025 and approximately 12.8% for the same period of 2024.

Previous wording

Lease Operating Expenses and Property Taxes. Lease operating expenses and property taxes increased $0.6 million or 7.1%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. For the six months ended June 30, 2025, lease operating expenses and property taxes increased approximately $0.5 million or 3% compared to the six months ended June 30, 2024.

Current wording

Lease Operating Expenses and Property Taxes. Lease operating expenses and property taxes increased $0.69 million or 9.1%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. For the nine months ended September 30, 2025, lease operating expenses and property taxes increased approximately $1.17 million or 5% compared to the nine months ended September 30, 2024.

Previous wording

Excess Production Costs. For the three months ended June 30, 2025, net proceeds of $6,972,006, 75% of which amount would otherwise have been payable to the Trust as Royalty Income, were applied to the balance of Excess Production Costs accrued as a result of Hilcorp's drilling of two new horizontal wells. The balance of cumulative Excess Production Costs, as of June 30, 2025, was approximately $14,767,940 gross ($11,075,955 net to the Trust). The Conveyance provides that any Excess Production Costs applicable to the Subject Interests over 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.

Current wording

Excess Production Costs. For the three months ended September 30, 2025, net proceeds of $1,174,206, 75% of which amount would otherwise have been payable to the Trust as Royalty Income, were applied to the balance of Excess Production Costs accrued as a result of Hilcorp's drilling of two new horizontal wells in 2024. The balance of cumulative Excess Production Costs, as of September 30, 2025, was approximately $13,593,734 ($10,195,300 net to the Trust). The Conveyance provides that any Excess Production Costs applicable to the Subject Interests over 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.

Previous wording

The Line of Credit is intended to cover the Trust’s administrative expenses until the Trust receives Royalty Income in amounts sufficient to (a) repay the balance of Excess Production Costs, (b) replenish a reserve in the amount of $2,000,000, and (c) repay the Note in full, after which time, the Trust will resume distributions to the holders of the Trust’s Units of beneficial interest. The Trust utilized $29,932 in May 2025 to cover fees associated with obtaining the Line of Credit and $132,851 in June 2025 to help cover Trust administrative costs. As of June 30, 2025, the outstanding balance on the Line of Credit was $162,783.

Current wording

The Line of Credit is intended to cover the Trust’s administrative expenses until the Trust receives Royalty Income in amounts sufficient to (a) repay the balance of Excess Production Costs, (b) replenish a reserve in the amount of $2,000,000, and (c) repay the Note in full, after which time, the Trust will resume distributions to the holders of the Trust’s Units of beneficial interest. The Trust utilized $29,932 in May 2025 to cover fees associated with obtaining the Line of Credit and $132,851 in June 2025 to help cover Trust administrative costs. Funds in the amounts of $18,565, $19,318, and $73,469 from the Line of Credit were utilized in July, August, and September, respectively to pay Trust administrative expenses, net of interest earned on Trust cash accounts. As of September 30, 2025, the outstanding balance on the Line of Credit was $274,135.

Previous wording

Distributable Income. Distributable Income for the three and six months ended June 30, 2025, and 2024 was determined as shown in the following table:

Current wording

Distributable Income. Distributable Income for the three and nine months ended September 30, 2025, and 2024 was determined as shown in the following table:

Previous wording

There was no Distributable Income for the three and six months ended June 30, 2025. This was a decrease from $1.1 million ($0.022864 per Unit) for the three months ended June 30, 2024 and $5.2 million ($0.110671 per Unit) for the six months ended June 30, 2024. The decrease in Distributable Income was primarily attributable to significantly increased capital expenditures. The net loss for the three and six months ended June 30, 2025, resulted from the Trust’s draw on the Line of Credit to cover administrative expenses.

Current wording

There was no Distributable Income for the three and nine months ended September 30, 2025. There was no distributable income for the three months ended September 30, 2024 and $6.9 million ($0.110670 per Unit) for the nine months ended September 30, 2024. The decrease in Distributable Income was primarily attributable Hilcorp’s significantly increased capital expenditures in drilling two new horizontal wells in 2024, the costs of which extended into the early part of 2025. The net loss for the three and nine months ended September 30, 2025, resulted from the Trust’s draw on the Line of Credit to cover administrative expenses.

Previous wording

Interest Income. Interest income decreased for the three and six months ended June 30, 2025, as compared to the same periods in 2024 primarily due to the decrease in Royalty Income.

Current wording

Interest Income. Interest income decreased for the three and nine months ended September 30, 2025, as compared to the same periods in 2024 primarily due to the decrease in Royalty Income and cash reserves.

Previous wording

General&Administrative Expenses. General and administrative expenses decreased by $367,369 (48.4%) for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. For the six months ended June 30, 2025, general and administrative expenses decreased by $472,904 (34.4%) compared to the six months ended June 30, 2024 due to differences in timing of 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.

Current wording

General&Administrative Expenses. General and administrative expenses decreased by $270,968 (70.1%) for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. For the nine months ended September 30, 2025, general and administrative expenses decreased by $1,143,872 (52.9%) compared to the nine months ended September 30, 2024 due to differences in timing of the receipt and payment of certain expenses by the Trust, expenses in the first half of 2024 associated with the transition to Argent Bank as Trustee of the Trust, and a decrease in publishing and printing costs.

Previous wording

Cash Reserves. Total cash reserves were $32,968 as of June 30, 2025. 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 increased capital expenditures under Hilcorp's 2024 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 $1,767,041, along with interest income, were utilized to pay the balance of Trust administrative expenses remaining (after applying interest income) each month from May 2024 through May 2025, when the Trust did not receive any Royalty Income. For the months ended May 31, 2025, and June 30, 2025, Trust administrative expenses were paid using funds in the amounts of $84,838 from the cash reserves and $132,851 from the Line of Credit, respectively, net of interest earned on Trust cash accounts. 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 wording

Cash Reserves. Total cash reserves were $29,160 as of September 30, 2025. 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 increased capital expenditures under Hilcorp's 2024 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 $1,767,041, along with interest income, were utilized to pay the balance of Trust administrative expenses remaining (after applying interest income) each month from May 2024 through May 2025, when the Trust did not receive any Royalty Income. For the months ended May 31, 2025, and June 30, 2025, Trust administrative expenses were paid using funds in the amounts of $84,838 from the cash reserves and $132,851 from the Line of Credit, respectively, net of interest earned on Trust cash accounts. Cash reserves were utilized to pay interest accrued on the Line of Credit for the months of July, August, and September 2025, in the amounts of $1,059, $1,292, and $1,450 respectively. 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.

Previous wording

In each of the months from May 2024 through June 2025, 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 June 2025, the Trust was able to use cash reserves to pay the Trust’s liabilities from May 2024 through May 2025. As of June 30, 2025, the balance of cash reserves was $32,968.

Current wording

In each of the months from May 2024 through September 2025, 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 June 2025, the Trust was able to use cash reserves to pay the Trust’s liabilities from May 2024 through May 2025. As of September 30, 2025, the balance of cash reserves was $28,946.

Previous wording

On June 18, 2025, cash reserves in the amount of $212 were utilized to pay interest accrued on the Line of Credit, such that the balance of cash reserves maintained by the trust as of June 30, 2025 was $32,968. For the months ended May 31, 2025, and June 30, 2025, Trust administrative expenses were paid using funds in the amounts of $84,838 from cash reserves and $132,851 from the Line of Credit, respectively, net of interest earned on Trust cash accounts.

Current wording

Funds from the Line of Credit were utilized to pay Trust administrative expenses, net of interest earned on Trust cash accounts, from June through September 2025. As of September 30, 2025, the outstanding balance on the Line of Credit was $274,135. Cash reserves were utilized to pay interest accrued on the Line of Credit for the months of July, August, and September 2025, in the amounts of $1,059, $1,292, and $1,450 respectively, such that the balance of cash reserves maintained by the Trust is currently $28,946.

Previous wording

Royalty Income, if any, for the three months ended June 30, 2025, is associated with natural gas and oil production during the period from February 2025 through April 2025. Royalty Income, if any, for the six months ended June 30, 2025, is associated with natural gas and oil production from the Subject Interests during the period from November 2024 through April 2025.

Current wording

Royalty Income, if any, for the three months ended September 30, 2025, is associated with natural gas and oil production during the period from February 2025 through April 2025. Royalty Income, if any, for the nine months ended September 30, 2025, is associated with natural gas and oil production from the Subject Interests during the period from November 2024 through April 2025.

Previous wording

Production of natural gas and oil and related average sales prices attributable to each of the Subject Interests and the Royalty for the six months ended June 30, 2025 and 2024 were as follows:

Current wording

Production of natural gas and oil and related average sales prices attributable to each of the Subject Interests and the Royalty for the nine months ended September 30, 2025 and 2024 were as follows:

Previous wording

Natural gas production volumes increased for the Subject Interests and the Royalty by 1,627,829 Mcf (29.8%) and 2,171,136 Mcf (494%), respectively for the three months ended June 30, 2025, as compared to the same period in 2024. For the six months ended June 30, 2025, natural gas production volumes increased 3,653,706 Mcf (33.1%) for the Subject Interests and decreased 1,182,701 Mcf (91.9%) for the Royalty compared to the same periods in 2024. Royalty volume is calculated using a formula determined by revenue less expenses. Excess Production Costs contributed to the decrease in natural gas production volumes and negative volumes for the Royalty. The decrease in production volume was also affected by a natural decline in the producing properties, market conditions, and a decrease in demand. Natural gas production is also influenced by the line pressure of the natural gas gathering systems in the San Juan Basin.

Current wording

Natural gas production volumes increased for the Subject Interests and the Royalty by 1,227,472 Mcf (21.6%) and 4,881,176 Mcf (29.2%), respectively for the three months ended September 30, 2025, as compared to the same period in 2024. For the nine months ended September 30, 2025, natural gas production volumes increased 6,776,707 Mcf (101.4%) for the Subject Interests and 5,594,006 Mcf (103.7%) for the Royalty compared to the same periods in 2024. Royalty volume is calculated using a formula determined by revenue less expenses. Excess Production Costs contributed to the lower natural gas production volumes and negative volumes for the Royalty in 2024. The increase in production volume in 2025 was affected by production from the two horizontal wells installed in 2024. Natural gas pricing is affected by market conditions and demand. Natural gas production is also influenced by the line pressure of the natural gas gathering systems in the San Juan Basin.

Previous wording

Oil production volumes decreased for the Subject Interests by 1,168 Bbls (13.2%) for the three months ended June 30, 2025, as compared to the same period in 2024. Oil production volumes decreased for the Royalty by 955 Bbls (17.1%) for the three months ended June 30, 2025, as compared to the same period in 2024. For the six months ended June 30, 2025, oil production volume increased by 10,182 Bbls (174.9%) for the Subject Interests and 4,678 Bbls (148.0%) for the Royalty as compared to the same period in 2024. These changes generally resulted from changes in the demand for natural gas during the applicable time periods, natural gas inventory levels, availability of market conditions, and an increase in capital spending to generate production from new and existing wells.

Current wording

Oil production volumes decreased for the Subject Interests by 3,336 Bbls (30.0%) for the three months ended September 30, 2025, as compared to the same period in 2024. Oil production volumes decreased for the Royalty by 2,509 Bbls (38.8%) for the three months ended September 30, 2025, as compared to the same period in 2024. For the nine months ended September 30, 2025, oil production volume decreased by 1,797 Bbls (7.0%) for the Subject Interests and 3,423 Bbls (22.5%) for the Royalty as compared to the same period in 2024. These changes generally resulted from changes in the demand for natural gas during the applicable time periods, oil and natural gas inventory levels, availability of market conditions, and an increase in capital spending to generate production from new and existing wells.

Previous wording

The average realized natural gas price per Mcf increased for the three and six months ended June 30, 2025, as compared to the same periods in 2024. This increase was primarily due to a decrease in the El Paso Natural Gas Company, San Juan Basin Index pricing.

Current wording

The average realized natural gas price per Mcf increased for the three and nine months ended September 30, 2025, as compared to the same periods in 2024. This increase was primarily due to a decrease in the El Paso Natural Gas Company, San Juan Basin Index pricing.

Previous wording

The average realized oil price per Bbl decreased for the three and six months ended June 30, 2025 as compared to the same periods in 2024. This decrease was primarily due to a decrease in the WTI benchmark oil price.

Current wording

The average realized oil price per Bbl decreased for the three and nine months ended September 30, 2025 as compared to the same periods in 2024. This decrease was primarily due to a decrease in the WTI benchmark oil price.