KNOT Offshore Partners vs San Juan Basin Royalty Trust

This page compares KNOT Offshore Partners LP and San Juan Basin Royalty Trust, examining their business models, financial performance, and market context in a neutral, accessible way. It presents information about each organisation’s activities, revenue drivers, and industry position to help readers understand their contexts. Educational content, not financial advice.

This page compares KNOT Offshore Partners LP and San Juan Basin Royalty Trust, examining their business models, financial performance, and market context in a neutral, accessible way. It presents info...

Comparison Snapshot

Key Financial Metrics

KNOP

Metric

SJT

$348.33M

Market Cap

$265.20M

3.46%

Potential Profit

N/A

Hold

Analyst Rating

N/A

Investment Analysis

KNOT Offshore Partners

KNOP

Pros

KNOT Offshore Partners holds the world’s largest fleet of shuttle tankers, benefiting from high barriers to entry and limited speculative competition due to specialised vessels and crews.
The company maintains stable, fixed-rate term charters with leading energy majors, insulating revenues from direct commodity price volatility and ensuring predictable cash flows.
Recent operational updates show strong liquidity above $100 million, high fleet utilisation near 97%, and secured charter coverage of 96% for 2025, supporting financial resilience.

Considerations

Exposure to the cyclical offshore oil sector means earnings could weaken if global oil production or investment in offshore fields declines significantly.
Dividend payments have recently been reduced to $0.026 per common unit, reflecting potentially constrained distribution capacity compared to historical levels.
Most operations are concentrated in the North Sea and Brazil, creating geographic reliance and potential vulnerability to regional regulatory or economic shifts.

San Juan Basin Royalty Trust

SJT

Pros

San Juan Basin Royalty Trust provides direct exposure to natural gas and oil production without operational costs, as it simply collects royalties on existing wells.
The trust has a long operating history since 1980, offering investors a track record of distributing royalty income from mature, established basins.
Its structure avoids corporate income tax at the trust level, potentially enhancing net distributable income to unitholders compared to traditional energy companies.

Considerations

The trust’s revenues are highly sensitive to commodity prices, with no hedging or fixed contracts to mitigate volatility in natural gas and oil markets.
Royalty volumes are in natural decline as the underlying reserves deplete, leading to shrinking distributable income over time without new acquisitions.
Recent financials show a deeply negative price-to-earnings ratio, indicating the trust has reported net losses, which may raise sustainability concerns for distributions.

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