Executive Summary

BPT reported a $0.00 per-unit distribution for Q1 2025; the quarter’s Per Barrel Royalty was negative as average WTI ($71.50) remained below the “break-even” after adjusted chargeable costs and production taxes, resulting in $(29.85) per barrel . The trust reiterated it terminated effective December 31, 2024 and is in wind-up .
No earnings call was held, and no financial guidance was provided. Distributions remain formula-driven and were zero for all quarters of 2023 and 2024, triggering termination per the Trust Agreement .
Key quarter drivers: higher adjusted chargeable costs ($98.89 vs $91.10 in Q4’24) and modestly higher production taxes offset a slight QoQ lift in WTI ($71.50 vs $70.32), keeping economics negative .
Potential stock catalysts: timing/terms of wind-up, whether Hilcorp North Slope (HNS) exercises its option to purchase Trust assets at the greater of fair value or $11.64MM, and the path to NYSE delisting or transfer to OTC if compliance is not regained .

What Went Well and What Went Wrong

What Went Well
- Process clarity: Management reiterated the formula mechanics (WTI less adjusted chargeable costs and production taxes) and affirmed trust wind-up is underway, reducing ambiguity about the framework from here .
- Operational volume: Average net production ticked up sequentially to 65.6 mb/d in Q1’25 (from 64.6 mb/d in Q4’24), a mild positive for underlying throughput assumptions, albeit insufficient to overcome cost headwinds .
- Procedural optionality: HNS retains a clear option to purchase the Trust assets at the greater of third-party fair value or $11.64MM, creating a transparent path to monetization for unitholders pending the valuation process .
What Went Wrong
- Distribution remained zero: Q1’25 per-unit distribution was $0.00 as WTI averaged $71.50 versus adjusted chargeable costs of $98.89 and production taxes of $2.46, producing an average per-barrel royalty of $(29.85) .
- Cost pressure: Adjusted chargeable costs rose to $98.89 in Q1’25 from $91.10 in Q4’24 and $90.90 in Q3’24, increasing the break-even hurdle and further depressing royalty economics .
- Listing risk: The NYSE notified BPT on Dec 31, 2024 of non-compliance (30-day average price < $1.00); without cure, NYSE will commence suspension/delisting, adding headline and liquidity risk during wind-up .

Financial Results

BPT does not operate a business with conventional revenue/EPS; its distribution is a function of daily royalty economics. Distributions were $0.00 across Q3’24–Q1’25, with negative Per Barrel Royalty each quarter as WTI trailed break-even.

Royalty economics and distribution (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Dividend Rate ($/Unit)	$0.00	$0.00	$0.00
Average WTI Price ($/bbl)	$75.20	$70.32	$71.50
Average Adjusted Chargeable Costs ($/bbl)	$90.90	$91.10	$98.89
Average Production Taxes ($/bbl)	$2.61	$2.42	$2.46
Average Per Barrel Royalty ($/bbl)	$(18.31)	$(23.19)	$(29.85)
Average Net Production (mb/d)	59.6	64.6	65.6

Additional context:

All four quarters of 2023 and 2024 generated zero revenues for the Trust, meeting the termination trigger under the Trust Agreement .
The Trust emphasizes that payments “may not be less than zero,” so negative per-barrel royalty does not create payable amounts .

Segment breakdown: Not applicable (single royalty interest) .

KPIs (formula references)

Per Barrel Royalty definition: WTI Price minus (Chargeable Costs × Cost Adjustment Factor) minus Production Taxes .

Guidance Changes

BPT does not issue forward guidance; distributions are formula-based and reported post-quarter. The Trust is in wind-up.

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Cash Distribution	Q1 2025	No guidance (formula-based)	No guidance; actual declared $0.00	N/A
Trust Status	Effective 12/31/2024	N/A	Trust terminated; wind-up commenced; timing uncertain	N/A
Asset Sale Path	Post-termination	N/A	HNS option to purchase at greater of FMV or $11.64MM; 30 days after FMV opinion	N/A

Earnings Call Themes & Trends

No earnings call or transcript for Q1 2025 was filed or available [List: earnings-call-transcript = none].

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2025)	Trend
WTI vs Break-even	WTI below break-even; negative royalty for Q3’24 and Q4’24	WTI $71.50 still below break-even; royalty $(29.85)	Deteriorated QoQ (bigger negative)
Adjusted Chargeable Costs	~$90.90 (Q3’24), ~$91.10 (Q4’24)	Rose to $98.89	Cost headwind increasing
Production Taxes	~$2.61 (Q3’24), ~$2.42 (Q4’24)	$2.46	Stable
Net Production	59.6 mb/d (Q3’24), 64.6 mb/d (Q4’24)	65.6 mb/d	Slight improvement
Trust Status	Termination effective 12/31/2024 announced, wind-up started	Wind-up ongoing; timing uncertain	Unchanged
Listing/Regulatory	NYSE non-compliance notice; cure period and risk of delisting	No new Q1 update on listing; delisting risk persists	Unchanged

Management Commentary

Formula mechanics reiterated: “Per Barrel Royalty … is the WTI Price for the day less the sum of (i) Chargeable Costs multiplied by the Cost Adjustment Factor and (ii) Production Taxes.”
On wind-up timing: “The Trustee cannot predict when the wind-up of the Trust will be completed.”
On termination trigger and status: The Trust “did not receive any revenues attributable to any of the four quarters of each of 2023 and 2024. Therefore … the Trust terminated at 11:59 PM on December 31, 2024.”

Q&A Highlights

No earnings call or Q&A was held for Q1 2025 [List: earnings-call-transcript = none].

Estimates Context

S&P Global consensus estimates: EPS and revenue estimates were unavailable for BPT for Q1 2025 (no CIQ mapping/coverage), reflecting the Trust’s termination and the absence of conventional operating metrics [GetEstimates error; see tool result].
Implications: Sell-side models are unlikely to anchor near-term expectations; trading likely hinges on wind-up process milestones rather than quarterly fundamentals .

Key Takeaways for Investors

Distribution remains $0.00 with Q1’25 royalty economics negative (WTI $71.50; adjusted costs $98.89; taxes $2.46; royalty $(29.85))—costs increased QoQ, offsetting a modest WTI uptick .
The Trust is terminated and in wind-up; timing of completion is unknown, and the Trustee must obtain a third-party FMV opinion before an asset sale decision .
HNS has a 30-day option post-FMV opinion to acquire Trust assets at the greater of FMV or $11.64MM (based on 21.4MM units × $0.544 at termination date), potentially setting a valuation floor for the wind-up outcome .
Listing risk persists: NYSE non-compliance notice issued Dec 31, 2024; absent cure, suspension/delisting proceedings would reduce liquidity and could increase volatility .
Near-term trading catalysts: (i) FMV opinion timing and content, (ii) HNS option decision, (iii) any NYSE listing developments, and (iv) changes in WTI and reported adjusted chargeable costs .
With no call and no guidance, the narrative is procedural and formulaic: distributions will remain zero unless WTI sustainably exceeds adjusted costs plus taxes, or until assets are sold and proceeds distributed net of liabilities .
Position sizing should consider headline risk (delisting/wind-up), limited fundamental levers, and the binary nature of asset sale outcomes; liquidity may worsen if units transfer to OTC .

Citations:

Q1 2025 8-K and press release (no distribution; royalty math; termination; wind-up timing):
Q4 2024 8-K and press release (termination; NYSE notice; Q4 inputs):
Q3 2024 8-K and press release (no distribution; Q3 inputs):

BP PRUDHOE BAY ROYALTY TRUST (BPT)·Q1 2025 Earnings Summary