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San Juan Basin Royalty Trust Message Board

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  • rrb1981 rrb1981 Apr 23, 2012 8:01 PM Flag

    buy low sell high

    I believe gas will eventually recover to $3.40-$4.00/mcf. It will take a few years but as has been pointed out, eventually more and more producers will focus on oily prospects.

    San Juan will be paying out distributions on royalties received 10-20 yrs from now without question. The question is what will those payouts be, and what kind of yield will investors receive.

    This is too rich for the risk at this price. Gas could stay down for several years. Distributions could drop below $.06/unit/month. I think we need to see $10/unit before this becomes very attractive.

    One of the real problems is that the bulk of the production is dry gas. No uplift from liquids.

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