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BP Prudhoe Bay Royalty Trust(BPT) - 2024 Q1 - Quarterly Report
BPTBP Prudhoe Bay Royalty Trust(BPT)2024-05-09 20:06

Financial Performance - The average daily closing WTI price for the quarter ended March 31, 2024, was 77.01,whichwasbelowthebreak−evenprice,resultinginanegativepaymentcalculationforthequarter[33].−Theaverageadjustedchargeablecostswere77.01, which was below the break-even price, resulting in a negative payment calculation for the quarter[33]. - The average adjusted chargeable costs were 89.61 per barrel, leading to an average per barrel royalty of (15.28)forthequarter[35].−TheTrustdidnotreceiveRoyaltyPaymentsforanyquarterof2023orthefirstquarterof2024duetodecliningWTIpricesandincreasedcosts[60].−RoyaltyrevenuesforQ12024were(15.28) for the quarter[35]. - The Trust did not receive Royalty Payments for any quarter of 2023 or the first quarter of 2024 due to declining WTI prices and increased costs[60]. - Royalty revenues for Q1 2024 were 0, reflecting a 100% decrease from 6,640inQ12023[97].−CashearningsforQ12024were6,640 in Q1 2023[97]. - Cash earnings for Q1 2024 were (271), a decline of 104.3% from 6,363inQ12023[97].−CashdistributionsforQ12024were6,363 in Q1 2023[97]. - Cash distributions for Q1 2024 were 0, down 100% from 6,365inQ12023[97].−TheaverageWTIpriceforQ42023was6,365 in Q1 2023[97]. - The average WTI price for Q4 2023 was 78.47, a decrease of 4.9% compared to 82.53inQ42022[72].−Adjustedchargeablecostsincreasedby12.082.53 in Q4 2022[72]. - Adjusted chargeable costs increased by 12.0% to 82.16 in Q4 2023 from 73.36inQ42022[72].−Averageperbarrelroyaltypaidwas73.36 in Q4 2022[72]. - Average per barrel royalty paid was (6.44) in Q4 2023, a decrease of 12.69comparedto12.69 compared to 6.25 in Q4 2022, primarily due to lower WTI prices and higher chargeable costs[72]. - Average net production decreased by 3.3% to 67.9 mb/d in Q4 2023 from 70.2 mb/d in Q4 2022[72]. Trust Operations - The Trust's cash reserve was increased to 6.0millioninOctober2021,fullyfundedfromtheRoyaltyPaymentattributabletothethirdquarterof2021[40].−TheTrust′scashreserveiscurrentlymaintainedatapproximately6.0 million in October 2021, fully funded from the Royalty Payment attributable to the third quarter of 2021[40]. - The Trust's cash reserve is currently maintained at approximately 6.0 million, with the potential for adjustments based on future revenue and expenses[66]. - The Trust's Corpus decreased due to expenses being paid from cash reserves instead of from the Per Barrel Royalty[75]. - The Trust will terminate if net revenues from the Royalty Interest are less than 1.0millionperyearfortwoconsecutiveyears,barringforcemajeureevents[60].−HNS′snetproductionofoilandcondensateallocatedtotheTrustwaslessthan90,000barrelsperdayannuallyfrom2019through2023andisexpectedtoremainbelowthisthresholdinfutureyears[43].−TheTrusteehastheauthoritytoborroworestablishacashreserveunderlimitedcircumstancesaspertheTrustAgreement[63].MarketInfluences−TheTrust′srevenuesaresignificantlyaffectedbyfluctuationsincrudeoilprices,whichareinfluencedbyglobalsupplyanddemanddynamicsandgeopoliticalevents[42].−FuturenetrevenuefromtheRoyaltyInterestwilldependonWTIprices,whichareprojectedtoaverage1.0 million per year for two consecutive years, barring force majeure events[60]. - HNS's net production of oil and condensate allocated to the Trust was less than 90,000 barrels per day annually from 2019 through 2023 and is expected to remain below this threshold in future years[43]. - The Trustee has the authority to borrow or establish a cash reserve under limited circumstances as per the Trust Agreement[63]. Market Influences - The Trust's revenues are significantly affected by fluctuations in crude oil prices, which are influenced by global supply and demand dynamics and geopolitical events[42]. - Future net revenue from the Royalty Interest will depend on WTI prices, which are projected to average 84.76 in Q2 2024 and $85.50 in Q3 2024[92]. Compliance and Reporting - No changes in internal control over financial reporting identified during the last fiscal quarter[100]. - The trust does not prepare financial statements in accordance with generally accepted accounting principles[107]. - No legal proceedings reported[101]. - No risk factors disclosed[102]. - No unregistered sales of equity securities or issuer purchases reported[103]. - No additional signatures provided as the registrant is a trust[110]. - The report was signed on behalf of the registrant as required by the Securities Exchange Act of 1934[109]. - The date of the report is May 9, 2024[111]. - No significant financial data or performance metrics disclosed in the provided content[104]. - No new products, technologies, market expansions, or acquisitions mentioned[106].