BP Prudhoe Bay Royalty Trust Announces No Dividend Payment for Q3 2023

BP Prudhoe Bay Royalty Trust (NYSE:BPT) recently announced that unitholders will not receive a dividend payment for the quarter ended September 30, 2023. The decision was made due to the average daily closing price of West Texas Intermediate (WTI) falling below the “break-even” price for the quarter.

As per the Trust Agreement, the quarterly royalty payment is calculated based on the individual revenues attributed to the Trust each day during the quarter. The revenue is determined by multiplying the Royalty Production for each day by the Per Barrel Royalty for that day. The Per Barrel Royalty is calculated by subtracting the Chargeable Costs multiplied by the Cost Adjustment Factor and the Production Taxes from the WTI Price for the day.

For the three months ended September 30, 2023, the average WTI Price was $82.06, the average Adjusted Chargeable Costs were $82.15, and the average Production Taxes were $2.90. These figures resulted in an average Per Barrel Royalty of ($2.99), which is below zero.

Although the Trust Agreement states that the payment with respect to the Royalty Interest for any calendar quarter may not be less than zero, the negative value for the payment calculation for the quarter means that unitholders will not receive a dividend payment.

It is important to note that forward-looking statements have been made in this press release. The actual results, performance, and prospects of the Trust could differ materially from those expressed or implied by these statements. The Trust’s annual, quarterly, and other filed reports are available on the Securities and Exchange Commission’s website for further information.

While this news may be disappointing for unitholders, it is essential to consider the fluctuating nature of the oil market and the impact it can have on dividend payments. BP Prudhoe Bay Royalty Trust remains committed to providing transparency and will continue to evaluate future dividend payments based on market conditions.

Please note that this press release does not constitute financial advice, and investors are encouraged to consult with their financial advisors for personalized guidance.