Denis Shevchuk
I sold all my holdings of San Juan Basin Royalty Trust (NYSE:SJT) after the April 17 news release had a positive impact on SJT's price. It seems investors focused on the large paydown of the CAPEX liability, but I was
Why I Sold San Juan Basin Royalty Trust Last Week
Summary
- While the CAPEX liability was reduced significantly in February, it still might be a very long time before there are any monthly distributions.
- February average daily natural gas production dropped from the prior month, which was a surprise given the two new horizontal wells.
- SJT investors need to factor in the complexities of the income tax code when valuing this royalty trust.
- SJT is being downgraded from a hold to a sell.
I no longer write for Seeking Alpha. B.A. in Economics; M.S. in Finance. I usually wrote about distressed companies and companies in Ch.11 bankruptcy. I am now fully retired after spending decades in investments.
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