BP Prudhoe Bay Royalty Trust Announces No Unit Payment for Fourth Quarter 2020

Rhea-AI Summary

BP Prudhoe Bay Royalty Trust (BPT) has announced its dividend details for Q4 2020. The ex-dividend date is January 14, 2021, with the record date on January 15 and payment on January 20, 2021. The dividend rate is noted as $0.0000000 per Unit, reflecting a significant challenge due to the average WTI price of $42.66 being below the break-even point of $54.34 for the quarter. Despite the increase in WTI price from Q3, the Trust's revenues did not meet the threshold for positive payments, leading to a net payment of zero.

Positive

• None.

Negative

• Dividend rate of $0.0000000 per Unit indicating no payment.
• Average WTI price of $42.66 was below the break-even point of $54.34.
• Negative payment calculation for the fourth quarter due to low daily WTI prices.

This is to advise you that BP Prudhoe Bay Royalty Trust (NYSE Symbol: BPT) announces that the dividend information for the Fourth Quarter of 2020 is as follows:

Ex-Dividend Date:	January 14, 2021
Record Date:	January 15, 2021
Payable Date:	January 20, 2021
Dividend Rate:	$0.0000000 per Unit*
*Actual average daily production for the quarter was 75,382 BBLS.

As provided in the Trust Agreement of the Trust, the quarterly royalty payment by Hilcorp North Slope, LLC (formerly BP Exploration (Alaska) Inc.) to the Trust is the sum of the individual revenues attributed to the Trust as calculated each day during the quarter. The amount of such revenues is obtained by multiplying Royalty Production for each day in the calendar quarter by the Per Barrel Royalty for that day. Pursuant to the Trust Agreement, the Per Barrel Royalty for any day is the WTI Price for the day less the sum of (i) Chargeable Costs multiplied by the Cost Adjustment Factor and (ii) Production Taxes. As discussed in Item 1A “RISK FACTORS”, of the Trust’s Annual Report on Form 10-K for the year ended December 31, 2019, on January 1, 2020, the “break-even” WTI price (the price at which all taxes and prescribed deductions are equal to the WTI price) for the Trust to receive a positive Per Barrel Royalty with respect to a particular day’s production was $54.34. While the average fourth quarter 2020 WTI price increased to $42.66 from an average of $40.87 for the third quarter of 2020, moving within a range of approximately $36 to $49 per barrel, the daily WTI price was below the “break-even” point for each day of the quarter. This resulted in a negative value for the payment calculation for the fourth quarter of 2020. However, as provided in the Trust Agreement, the payment with respect to the Royalty Interest for any calendar quarter may not be less than zero.

Neither the Trust nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release. An investment in units issued by the Trust is subject to the risks described in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2019, the Trust’s subsequent Quarterly Reports on Form 10-Q, and all of the Trust’s other filings with the SEC. The Trust’s annual, quarterly and other filed reports are or will be available over the Internet at the SEC’s website at http://www.sec.gov.

Any questions, please feel free to contact The Bank of New York Mellon Trust Company, N.A. at 713-483-6020.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210105005994/en/

FAQ

When is the ex-dividend date for BPT?

The ex-dividend date for BPT is January 14, 2021.

What is the record date for BPT's fourth-quarter dividend?

The record date is January 15, 2021.

When will the dividend be payable for BPT?

The dividend will be payable on January 20, 2021.

What is the dividend amount for BPT in Q4 2020?

The dividend amount is $0.0000000 per Unit.

What was the average WTI price in Q4 2020 for BPT?

The average WTI price in Q4 2020 was $42.66.