BP PRUDHOE BAY ROYALTY TRUST (BPT)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 distribution was $0.00 per unit as the average WTI price ($70.32) was below the quarter’s break-even, resulting in a negative Per Barrel Royalty of $(23.19) and no royalty payment to the Trust .
• The Trust terminated at 11:59 PM on December 31, 2024, having received no revenues in any quarter of 2023 or 2024; the Trustee has commenced winding-up and a process to sell Trust assets, including a purchase option for Hilcorp North Slope (“HNS”) at the greater of fair market value or $11.6416 million .
• The NYSE notified BPT on December 31, 2024 that it no longer met continued listing standards due to a sub-$1.00 average closing price; units may remain listed during the cure period with a “.BC” indicator, but delisting could follow if compliance is not regained within six months .
• Catalysts: wind-up execution and asset sale decision (including HNS option window), potential delisting proceedings, and timing/size of net proceeds distribution to unitholders after liabilities/reserves .

What Went Well and What Went Wrong

What Went Well

• Net production improved q/q to 64.6 mb/d in Q4 2024 (vs. 59.6 mb/d in Q3), partially offsetting headwinds from lower WTI and rising adjusted chargeable costs .
• Trustee provided clear procedural roadmap: obtain third-party FMV opinion, HNS option window, then sale and net proceeds distribution after liabilities/reserves, improving visibility on next steps for unitholders .
• Units are expected to remain listed during the cure period (subject to continued listing requirements), allowing trading liquidity while wind-up proceeds, albeit with the NYSE “.BC” indicator .

What Went Wrong

• No royalty revenue and no distribution; Q4 Per Barrel Royalty was deeply negative at $(23.19) driven by WTI below break-even and elevated adjusted chargeable costs, continuing a worsening trend from Q2 and Q3 .
• The Trust terminated effective December 31, 2024 after two successive years with net revenues under $1.0 million, triggering the wind-up and asset sale process .
• NYSE non-compliance notice due to average closing price below $1.00 introduces risk of suspension and delisting if price thresholds are not met within the six-month cure period .

Financial Results

Royalty Calculation Inputs and Distribution (oldest → newest)

Notes:

• The average daily closing WTI price was below the quarter’s break-even each period shown, resulting in negative royalty calculations; payments cannot be less than zero under the Trust Agreement .

EPS, Revenue, Margins

• Not applicable for BPT as a royalty trust; results are driven by the per barrel royalty formula and do not include operational EPS, revenue, or margin reporting .

Guidance Changes

Earnings Call Themes & Trends

Note: No earnings call transcript was filed; themes reflect press releases and 8-K filings .

Management Commentary

• “The Trust has not received any revenues attributable to any of the four quarters of each of 2023 and 2024. Therefore, in accordance with the Trust Agreement, the Trust terminated at 11:59 PM on December 31, 2024, and the Trustee has commenced the process of winding up the affairs of the Trust.” (Press release, Jan 6, 2025) .
• “HNS has an option, exercisable within 30 days of the notice of the determination of the fair market value, to purchase the assets of the Trust at a price equal to the greater of (i) the fair market value … or (ii) $11,641,600.” (Press release, Jan 6, 2025) .
• “The Trustee cannot predict when the wind-up of the Trust will be completed.” (Press release, Jan 6, 2025) .
• “Subject to the Trust’s compliance with the other continued listing requirements, during any applicable cure period, the Units are expected to continue to be listed and traded on the NYSE under the symbol ‘BPT’ but … the NYSE makes available … an indicator, ‘.BC’, when a company is below … continued listing standards.” (Press release, Jan 6, 2025) .

Q&A Highlights

• Not applicable—no earnings call transcript was filed for Q4 2024; clarifications were provided via press releases and the 8-K .
• Key procedural clarifications: payments cannot be less than zero under the Trust Agreement; unitholders do not have rights to seek partition/distribution of assets during wind-up; proceeds will be distributed after liabilities/reserves .

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable for BPT; as a royalty trust without operating EPS/revenue, no estimates comparison could be made. Consensus recommendation and target price data were also unavailable for this ticker via SPGI mapping at the time of query [GetEstimates error; consensus unavailable].

Key Takeaways for Investors

• The termination and wind-up fundamentally change the investment case: focus shifts from distributions to timing and size of net liquidation proceeds to unitholders after liabilities/reserves are settled .
• HNS’s 30-day option post-FMV opinion—with a $11.6416 million floor—creates a potential near-term resolution path and a valuation reference point for the asset sale .
• Listing risk is elevated: failure to regain compliance within the six-month cure period could trigger suspension and delisting, impacting liquidity and trading venue, with the “.BC” designation indicating non-compliance status meanwhile .
• Commodity sensitivity remains adverse: WTI below break-even combined with rising adjusted chargeable costs continues to result in negative royalty values; no distribution is expected absent material changes .
• Short-term trading implications: watch for announcements on the FMV opinion, HNS option decision, and NYSE compliance updates—each a potential catalyst for unit price repricing .
• Medium-term thesis: outcomes hinge on asset sale pricing versus the floor, wind-up expenses/reserves, and the timeline to distribute net proceeds; operational metrics (WTI/chargeable costs) are less relevant post-termination except as context for historical trend .