The Forensic Accountant
Research analyst, oil & gas, energy

San Juan Basin Royalty Trust: Distributions About To Pop

San Juan Basin Royalty Trust (NYSE:SJT) is a natural gas trust that receives proceeds from wells operated by Burlington Resources (a subsidiary of ConocoPhillips (NYSE:COP)) in northwestern New Mexico. SJT recently announced a $0.0867/sh. distribution for December 2013 sales and its shares have recently traded around $18/sh. Considering two months in early 2013 when SJT failed to pay a distribution, its 12-month trailing yield is a paltry 4.8%.

Better times are ahead. The distribution has already staged a mild recovery, but with a continued steep decline in well development costs and rising natural gas prices, my analysis suggests that SJT's monthly distribution is set to surge an additional 50% in the coming months-likely starting with January...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details