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San Juan Basin Royalty Trust 2021 First Quarter TO OUR UNIT HOLDERS We are pleased to present the 2021 1st Quarter Report ( this " Report " ) of the San Juan Basin Royalty Trust ( the “ Trust ” ) to the holders ( the “ Unit Holders ” ) of units of beneficial interest in the Trust ( the “ Units " ) . The principal asset of the Trust is a 75 % net overriding royalty interest ( the " Royalty " ) that is carved out of certain oil and gas leasehold and royalty interests in properties located in the San Juan Basin of New Mexico ( the " Subject Interests " ) . The Subject Interests are owned by Hilcorp San Juan L.P. ( " Hilcorp " ) , and were previously owned by Burlington Resources Oil & Gas Company LP , a wholly - owned subsidiary of ConocoPhillips . Royalty income distributed by Hilcorp to the Trust , which consists of monthly net proceeds attributable to the Royalty , was approximately $ 8.2 million for the three months ended March 31 , 2021 , compared to $ 5.1 million during the same period in 2020. The increase in Royalty income is attributable primarily to higher natural gas prices and lower lease operating expenses . Distributable income , which is the amount that the Trust distributes to the Unit Holders from the Royalty income less the amount of expenses paid by the Trust and any change in cash reserves , increased from $ 4.6 million ( $ 0.099085 per Unit ) for the three months ended March 31 , 2020 to $ 7.8 million ( $ 0.166304 per Unit ) for the three months ended March 31 , 2021. The increase in distributable income was primarily attributable to higher natural gas prices and lower lease operating expenses offset by lower production . Based on 46,608,796 Units outstanding , the per - Unit distributions during the first quarter of 2021 were as follows : General and administrative expenses increased approximately 1.7 % , for the three months ended March 31 , 2021 , as compared to the three months ended March 31 , 2020. The increase was primarily attributable to differences in timing in the receipt and payment of certain expenses by the Trust . Total cash reserves were $ 1.0 million as of March 31 , 2021. The Trustee does not anticipate any increase or decrease to the cash reserves in 2021 , although it cannot guarantee that the Trustee will not increase such cash reserves in the future . Capital expenditures by Hilcorp increased approximately $ 167,000 for the three months ended March 31 , 2021 , compared to the three months ended March 31 , 2020. The increase was primarily attributable to differences in timing in the payment of these expenditures along with capital expenditures attributable to the prior year's budget . Hilcorp's 2021 capital project plan for the Subject Interests calls for total capital spending of $ 0.3 million for fiscal 2021 . Royalty income for the three months ended March 31 , 2021 is associated with oil and natural gas production during November 2020 through January 2021 from the Subject Interests . Production of oil and natural gas and related average sales prices attributable to each of the Subject Interests and the Royalty for the three months ended March 31 , 2021 and 2020 were as follows : For the Three Months Ended March 31 , 2021 January February March Quarter Total $ 0.058599 0.054662 0.053043 $ 0.166304 Interest income was lower for the three months ended March 31 , 2021 , as compared to the same period in 2020 , due primarily to lower yields on short - term investments held by the Trust . 2020 Natural Gas ( Mcf ) Oil and Condensate Natural Gas ( Bbls ) ( Mcf ) Oil and Condensate ( Bbls ) Production Subject Interests Royalty Average Price ( per Mcf / Bbl ) 5,703,850 8,865 3,109,560 5,710 $ 2.64 $ 36.13 6,863,999 7,425 2,378,674 4,442 $ 2.02 $ 51.94