HOUSTON — (BUSINESS WIRE) — BP Prudhoe Bay Royalty Trust (NYSE: BPT) has informed its unit holders of record on July 15, 2025, that no dividend payment will be distributed for the quarter ending June 30, 2025. This decision stems from the Trust Agreement, which dictates that quarterly royalty payments from Hilcorp North Slope, LLC are calculated based on daily revenues attributed to the Trust. Daily revenue is determined by multiplying Royalty Production by the Per Barrel Royalty for each day of the quarter. The Per Barrel Royalty, as per the Trust Agreement, is the sum of the WTI Price less (i) Chargeable Costs multiplied by the Cost Adjustment Factor and (ii) Production Taxes.
For the three months concluding June 30, 2025, the Per Barrel Royalty calculation yielded the following key figures:
Average WTI Price |
$ |
63.95 |
|
||||||||||
Average Adjusted Chargeable Costs |
$ |
99.63 |
|
||||||||||
Average Production Taxes |
$ |
2.15 |
|
||||||||||
Average Per Barrel Royalty |
$ |
(37.83 |
) |
||||||||||
Average Net Production (mb/d) |
|
63.3 |
|
The average daily closing WTI price for the quarter fell below the “break-even” threshold, resulting in a negative calculation for the payment. However, the Trust Agreement stipulates that royalty payments cannot be less than zero.
As previously announced, the Trust concluded its operations on December 31, 2024. The Bank of New York Mellon Trust Company, N.A., acting as trustee, has initiated the process of winding down the Trust’s affairs, though the completion timeline remains undetermined.
Delisting from NYSE
Furthermore, the Trust has been notified by the New York Stock Exchange (NYSE) that trading of its units of beneficial interest will be suspended, effective at the close of trading on June 30, 2025. The NYSE will also commence proceedings to delist the units. This action is a consequence of the Trust’s failure to meet continued listing standards, specifically concerning the average closing price of its units remaining below $1.00 for 30 consecutive trading days, a period that ended on December 30, 2024. Despite a subsequent cure period, the Trust was unable to regain compliance.
Following the NYSE suspension, the Trust’s units commenced trading on July 1, 2025, under the ticker “BPPTU” on the OTC Pink Limited Market, facilitated by OTC Markets Group, Inc. Trading on OTC Pink requires a market maker to sponsor the security and adhere to SEC Rule 15c2-11. This shift to OTC Pink represents a significantly more restricted market compared to the NYSE. Consequently, existing and potential unit holders may experience reduced liquidity, and the trading price of the units could face further downward pressure. There is no guarantee that an active market will materialize for the units on OTC Pink.
FORWARD LOOKING STATEMENTS
This press release includes forward-looking statements as defined by federal securities laws. These statements are subject to various risks and uncertainties beyond the Trust’s control. They encompass the Trust’s expectations regarding the transition of unit trading to OTC Pink, the anticipated trading activity on OTC Pink, and the asset sale process. Details on potential risks that could impact the Trust’s future performance are available in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2024, subsequent Quarterly Reports on Form 10-Q, and other SEC filings. These reports can be accessed via the SEC’s website at http://www.sec.gov. The Trustee is not obligated to update these forward-looking statements after the report date, except as required by law, and all such statements are qualified by the cautionary statements provided herein.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250701569664/en/
Elaina Rodgers
Vice President
The Bank of New York Mellon Trust Company, N.A.
Source: BP Prudhoe Bay Royalty Trust
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