San Juan Basin Royalty Trust Reveals Hilcorp's 2026 Capital Expenditure Expectations
San Juan Basin Royalty Trust Reveals Hilcorp's 2026 Capital Expenditure Expectations
The San Juan Basin Royalty Trust (NYSE: SJT), with Argent Trust Company acting as its trustee, has officially communicated Hilcorp Energy Company's anticipated capital plan for the year 2026. Announced on February 18, 2026, the plan outlines an impressive budget of roughly $14 million allocated to various projects within the Trust's areas of interest.
Overview of the 2026 Capital Expenditure Plan
Hilcorp's 2026 capital plan highlights a total of 32 projects, marking a strategic push in operational activities. Of the allocated budget, approximately $11.5 million will be specifically used for development in nine new vertical drilling projects across the Mesaverde, Mancos, and Dakota formations. Additionally, six new horizontal drilling projects in the Mancos formation are also part of this expenditure.
In contrast, the capital budget will see $2.0 million dedicated to 17 recompletion and workover projects in the Fruitland Coal and Pictured Cliffs formations. Furthermore, around $0.5 million is earmarked for facilities developments related to natural gas compression and other essential infrastructure improvements.
Revisable Plans and Historical Context
Hilcorp has made it clear that the proposed 2026 capital expenditures are subject to modification. The company's projections could change depending on revised assumptions and variable conditions affecting the market.
Interestingly, the previous fiscal year saw Hilcorp predict capital expenditures of $9.0 million for 2025. However, the actual spending between January and December 2025 amounted to around $8.3 million. This included about $4.0 million invested in seven drilling initiatives along with $4.3 million going into 23 recompletion and workover projects.
Forward-Looking Statements and Risk Considerations
It’s important to note that the information discussed herein includes forward-looking statements. Under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, these anticipations often incorporate terms such as
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