Asset Transactions - BP Prudhoe Bay Royalty Trust sold its Alaska assets to Hilcorp Alaska, LLC for a total consideration of $5.6 billion, completed on June 30, 2020[8]. Royalty Interest and Production - The Trust holds a Royalty Interest of 16.4246% on the lesser of the first 90,000 barrels of actual average daily net production or the actual average daily net production from BP Alaska's working interest in the Prudhoe Bay oil field[17]. - Royalty Production is calculated as 16.4246% of the lesser of the first 90,000 barrels of actual average daily net production or the actual average daily net production from the 1989 Working Interests[46]. - The Trust's Royalty Interest is based on HNS's ownership interest in the oil rim participating area of 50.68% as of February 28, 1989[81]. - The Trust's Royalty Interest does not include production from other oil fields within the Prudhoe Bay Unit[78]. - HNS's share of net oil production allocated to the 1989 Working Interests was 65.3 thousand barrels per day in 2023, down from 75.5 thousand barrels per day in 2019, reflecting a decrease of about 13.4%[93]. - The average well production rate declined from 163 barrels per day in 2019 to 147 barrels per day in 2023, representing a decrease of approximately 9.8% over the five-year period[91]. Financial Performance - The Trust's total assets decreased from $6,067,000 in 2022 to $5,302,000 in 2023, a decline of about 12.6%[108]. - The Trust's cash and cash equivalents increased significantly from $132,000 in 2022 to $5,302,000 in 2023[108]. - The Trust's total liabilities rose from $280,000 in 2022 to $338,000 in 2023, an increase of approximately 20.7%[108]. - Royalty revenues for 2023 were $6,640,000, a significant decrease from $82,283,000 in 2022, and down from $9,417,000 in 2021[112]. - Cash earnings for 2023 were $5,600,000, a drastic decline from $80,888,000 in 2022 and $7,811,000 in 2021[115]. - Cash distributions for 2023 totaled $6,365,000, compared to $80,823,000 in 2022 and $2,007,000 in 2021[115]. - Cash distributions per unit for 2023 were $0.2974, significantly lower than $3.7768 in 2022 and $0.0938 in 2021[112]. - The Trust did not receive any net revenues attributable to any quarter in 2023, marking a continuation of revenue challenges[119]. - The Trust's cash reserve is believed to be sufficient to cover fees and expenses for the next 12 months[119]. Costs and Taxes - Chargeable Costs per barrel increased from $23.75 in 2019 to $34.75 in 2023, with a projected increase to $37.50 in 2024[49]. - The Per Barrel Royalty is determined by the WTI Price minus Chargeable Costs and Production Taxes[47]. - Production Taxes for the Trust's Royalty Production are calculated based on the relevant quarter's tax minus allowable monthly stair-step per-barrel tax credits[54]. - HNS's production taxes for Q3 2023 were $2.90 per average barrel royalty[63]. - The average WTI price for Q2 2023 was $73.76, with production taxes at $2.57 per average barrel royalty[63]. - HNS's production taxes for Q1 2023 were $2.67 per average barrel royalty[63]. Trust Operations and Governance - The Trust has no employees; all administrative functions are performed by the Trustee, which incurs liabilities primarily related to administrative expenses[26][27]. - The Trustee is authorized to borrow or sell Trust assets to pay liabilities if cash on hand is insufficient, with no distributions to Unit holders until borrowings are repaid[30]. - The Trust Agreement is irrevocable, and amendments can only be made with the approval of a majority of the outstanding Units, ensuring protection for Unit holders[32]. - The Trust's operations are passive, with no rights to take oil and gas in kind or influence operational decisions regarding HNS's working interest[25]. - Unit holders possess limited voting rights compared to shareholders, with no requirement for annual meetings[41]. - The Trust has no independent directors and is administered by the Trustee under the Trust Agreement[177]. - The Trust has not authorized any units for issuance under equity compensation plans[172]. Financial Reporting and Compliance - The Trust's financial statements are prepared on a modified cash basis, reflecting the most meaningful representation of cash receipts and distributions[121]. - The Trust's financial statements are not prepared in accordance with generally accepted accounting principles in the U.S.[101]. - The Trust maintained effective internal control over financial reporting as of December 31, 2023, according to the independent auditor's opinion[103]. - The Trust's internal control over financial reporting was evaluated as effective as of December 31, 2023[154]. - There were no changes in accountants or disagreements with accountants during the two fiscal years ended December 31, 2023[148]. Future Outlook and Risks - Future Royalty Payments may be affected by projected production declines and changes in oil prices[205]. - The Trust will terminate if net revenues from the Royalty Interest fall below $1,000,000 per year for two consecutive years, unless affected by a "force majeure" event[34]. - Significant geopolitical events, including conflicts and sanctions, may impact crude oil prices and market stability[203]. - The Trust's estimated life and reserve values fluctuate based on WTI price changes and other factors[204]. - The EIA forecasts Brent crude oil prices to average approximately $82 per barrel in 2024[202]. Reserves and Production Estimates - Net proved reserves of oil and condensate attributable to the Trust as of December 31, 2023, were estimated to be 0 million barrels, compared to 8.232 million barrels in 2022[141]. - Proved developed reserves as of December 31, 2022, were 7,862 thousand barrels[145]. - Proved undeveloped reserves as of December 31, 2022, were 370 thousand barrels[145]. - The standardized measure of discounted future net cash flow relating to proved reserves was $56,751,000 as of December 31, 2022[143]. - The Trust's estimated reserve volumes are based on an average WTI price of $78.22 per barrel for the 12-month period prior to December 31, 2023[194]. Trustee Fees and Audit - Trustee's fees for the year ended December 31, 2023, were $213,378, a decrease from $215,538 in 2022[171]. - Total fees paid to KPMG LLP for audit services in 2023 amounted to $196,500, consistent with 2022[178].

In 2023, energy enterprises grappled with a formidable challenge, a stark departure from the robust rally witnessed in the two preceding years. The Energy Select Sector SPDR Fund (NYSEARCA:XLE), a vital benchmark, mirrored the plight of the doomed oil stocks with a 2.33% share price decline in the tumultuous past year. As we look ahead to 2024, projections indicate that crude oil prices will stabilize around the $80 per barrel range. Although the Organization of the Petroleum Exporting Countries and its all ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------|-------------------- ...

Table of Contents (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or For the transition period from to Table of Contents FORM 10-Q Title of each class Symbol(s) of each exchange on which registered TABLE OF CONTENTS | --- | --- | --- | |----------|--------------------------------------|--------------------------------- ...

In the light of these risks, uncertainties and assumptions, you should not rely unduly on any forward-looking statements. Forward-looking events and outcomes discussed in the 2022 Annual Report and in this report and the Trust's other reports may not occur or may turn out differently. The Trustee undertakes no obligation to update forward-looking statements after the date of this report, except as required by law, and all such forward-looking statements in this report are qualified in their entirety by the ...

The Trust has no directors, officers or employees to whom it pays compensation. The Trust is administered by employees of the Trustee in the ordinary course of their employment who receive no compensation specifically related to their services to the Trust. The Trustee knows of no arrangement, including the pledge of Units, the operation of which may at a subsequent date result in a change in control of the Trust. (b) Description of Exhibits Pursuant to the requirements of the Securities Exchange Act of 193 ...

Table of Contents Title of each classTrading Symbol(s)Name of each exchange on which registered Units of Beneficial Interest BPT New York Stock Exchange Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or For t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or For the transition period from to | --- | --- | |-------------------------------------------------------------------------------------------------------------------------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------|------------------------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-10243 BP PRUDHOE BAY ROYALTY TRUST (Exact name of registration as specified in its charter) Delaware 13-6943724 (State or other jurisdiction of incorporation or o ...