BP Prudhoe Bay Royalty Trust Announces No Unit Payment for the First Quarter of 2023

Rhea-AI Summary

BP Prudhoe Bay Royalty Trust (NYSE: BPT) announced that unitholders will not receive a dividend for the quarter ended March 31, 2023. The Ex-Dividend Date is April 14, 2023, with a Record Date of April 17, 2023. The dividend rate is reported at $0.00 per unit due to the average WTI price being below the break-even threshold, resulting in a negative average per barrel royalty of $7.00. Moreover, during this period, the average WTI price was $76.17, while adjusted chargeable costs averaged $80.50, and production taxes averaged $2.67. This situation was compounded by a prior overpayment of $13,279 to the Trust for the quarter ended December 31, 2022, which affected current payment calculations.

Positive

• None.

Negative

• No dividend payment for the quarter ended March 31, 2023.
• Average WTI price of $76.17 was below the break-even point, leading to a negative average per barrel royalty of $7.00.
• Average adjusted chargeable costs were higher than the WTI price, indicating financial strain.
• Overpayment of $13,279 for the previous quarter negatively impacted calculations for current payments.

HOUSTON--(BUSINESS WIRE)-- BP Prudhoe Bay Royalty Trust (NYSE: BPT) announced that unitholders will not receive a dividend payment for the quarter ended March 31, 2023. The dividend information is as follows:

Ex-Dividend Date:					April 14, 2023
Record Date:					April 17, 2023
Payable Date:					None
Dividend Rate:					$0.00 per Unit

As provided in the Trust Agreement, the quarterly royalty payment by Hilcorp North Slope, LLC to the Trust is the sum of the individual revenues attributed to the Trust as calculated each day during the quarter. The amount of revenue is determined 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.

For the three months ended March 31, 2023, the Per Barrel Royalty was calculated based on the following information:

Average WTI Price					$	76.17
Average Adjusted Chargeable Costs					$	80.50
Average Production Taxes					$	2.67
Average Per Barrel Royalty					$	(7.00)
Average Net Production (mb/d)						70.3

The average daily closing WTI price was below the “break-even” price for the quarter, resulting in a negative value for the payment calculation for the quarter. In addition, there was an overpayment of $13,279 to the Trust for the quarter ended December 31, 2022. 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.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release are subject to a number of risks and uncertainties beyond the control of the Trustee. The actual results, performance and prospects of the Trust could differ materially from those expressed or implied by forward-looking statements. Descriptions of some of the risks that could affect the future performance of the Trust appear in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2022, the Trust’s subsequent Quarterly Reports on Form 10-Q, and the Trust’s other filings with the Securities and Exchange Commission. 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. Neither the Trust nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230406005646/en/

Elaina Rodgers

Vice President

The Bank of New York Mellon Trust Company, N.A.

713-483-6020

Source: BP Prudhoe Bay Royalty Trust

FAQ

Why did BP Prudhoe Bay Royalty Trust not issue a dividend for March 31, 2023?

The Trust did not issue a dividend because the average WTI price was below the break-even point, resulting in a negative average per barrel royalty.

What is the ex-dividend date for BP Prudhoe Bay Royalty Trust in 2023?

The ex-dividend date for BP Prudhoe Bay Royalty Trust is April 14, 2023.

What were the average WTI price and chargeable costs for BP Prudhoe Bay Royalty Trust?

The average WTI price was $76.17, while the average adjusted chargeable costs were $80.50 during the quarter.

What financial impact did the previous overpayment have on BP Prudhoe Bay Royalty Trust?

The previous overpayment of $13,279 for the quarter ended December 31, 2022, negatively impacted the current payment calculations.

What was the dividend rate for BP Prudhoe Bay Royalty Trust in the latest quarter?

The dividend rate for the latest quarter was $0.00 per unit.