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

$352.73M

Market Cap

$269.86M

-0.68%

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.

About The Companies

KNOT Offshore Partners (KNOP)

KNOT Offshore Partners LP (KNOP) is a limited partnership that owns and operates shuttle tankers used to move crude oil from offshore fields to onshore terminals. The business typically signs long‑term time or bareboat charters with major oil companies, giving it predictable cash flows while remaining exposed to charter rates and vessel utilisation. With a market cap of about $299.3M, investors often watch KNOP for its distribution potential, asset-backed cash generation and fleet renewal decisions. Key considerations include counterparty credit, vessel operating costs, maintenance dry‑docking and industry cyclicality driven by oil demand. Environmental and regulatory trends in shipping also matter. This summary is for educational purposes only, not personalised investment advice; values and distributions can rise or fall and are not guaranteed. Always consider your own situation or seek regulated advice before investing.

San Juan Basin Royalty Trust (SJT)

San Juan Basin Royalty Trust (SJT) is an investment trust that holds a significant royalty interest in oil and natural gas properties. Its primary asset is a 75% net overriding royalty on production from lands in the San Juan Basin of northwestern New Mexico. Unlike a traditional energy company that explores for and produces oil and gas, the Trust's main function is to collect the income generated from these royalties. After paying its expenses, the Trust then distributes the remaining income to its unit holders. For investors, this structure offers a way to gain exposure to the energy sector, with potential returns directly linked to the production levels and market prices of oil and gas from its designated interests. It's important to remember that the value of these interests and the income they generate can fluctuate, and past performance is not a guarantee of future returns.

Which Baskets Do They Appear In?

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Published: August 16, 2025

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Guyana's Offshore Oil Boom

ExxonMobil's new production vessel has significantly increased Guyana's oil output, cementing its status as a key global energy producer. This rapid expansion creates an investment opportunity in the ecosystem of companies providing essential offshore exploration, production, and infrastructure services.

Published: August 11, 2025

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Brazil's Offshore Oil Renaissance

BP's massive oil discovery in Brazil's Santos Basin has renewed excitement in the region's energy potential. This theme focuses on companies, including competitor Equinor, that are positioned to benefit from the increased investment and upcoming auctions in one of the world's most promising offshore oil frontiers.

Published: August 6, 2025

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Which Baskets Do They Appear In?

The Venezuelan Crude Comeback

Chevron is resuming crude oil shipments from Venezuela to the U.S. after receiving a new license. This development could benefit American refiners and logistics companies that specialize in handling heavy crude oil.

Published: August 16, 2025

Explore Basket

Guyana's Offshore Oil Boom

ExxonMobil's new production vessel has significantly increased Guyana's oil output, cementing its status as a key global energy producer. This rapid expansion creates an investment opportunity in the ecosystem of companies providing essential offshore exploration, production, and infrastructure services.

Published: August 11, 2025

Explore Basket

Brazil's Offshore Oil Renaissance

BP's massive oil discovery in Brazil's Santos Basin has renewed excitement in the region's energy potential. This theme focuses on companies, including competitor Equinor, that are positioned to benefit from the increased investment and upcoming auctions in one of the world's most promising offshore oil frontiers.

Published: August 6, 2025

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Energy Supermajor Consolidation

This carefully selected group of stocks captures the ripple effects of Chevron's game-changing $53 billion Hess acquisition. Our professional analysts have identified companies positioned to benefit from this new wave of energy sector consolidation, from competing supermajors to specialized service providers crucial for developing offshore mega-projects.

Published: July 20, 2025

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North Sea Oil Expansion

Tap into companies positioned to benefit from Equinor's massive $1.3 billion investment in the Johan Sverdrup oilfield. Our analysts have carefully selected businesses across drilling, subsea engineering, and marine transport that are essential to this renewed North Sea activity.

Published: July 2, 2025

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Comparison Snapshot