If you have been following BPT stock, you will know that the stock as been going up and down for the past few days. Here is what is happening. BP Prudhoe Bay Royalty Trust announced that it will pause the dividend payment, as a result, the stock tanked.
See the press release down here.
HOUSTON--(BUSINESS WIRE)-- BP Prudhoe Bay Royalty Trust () announced that unitholders will not receive a dividend payment for the quarter ended March 31, 2023. The dividend information is as follows:
April 14, 2023
April 17, 2023
$0.00 per Unit
As provided in the Trust Agreement, the quarterly royalty payment by Hilcorp North Slope, LLC to the Trust is the sum of the individual revenues attributed to the Trust as calculated each day during the quarter. The amount of revenue is determined by multiplying Royalty Production for each day in the calendar quarter by the Per Barrel Royalty for that day. Pursuant to the Trust Agreement, the Per Barrel Royalty for any day is the WTI Price for the day less the sum of (i) Chargeable Costs multiplied by the Cost Adjustment Factor and (ii) Production Taxes.
For the three months ended March 31, 2023, the Per Barrel Royalty was calculated based on the following information:
Average WTI Price
Average Adjusted Chargeable Costs
Average Production Taxes
Average Per Barrel Royalty
Average Net Production (mb/d)
The average daily closing WTI price was below the “break-even” price for the quarter, resulting in a negative value for the payment calculation for the quarter. In addition, there was an overpayment of $13,279 to the Trust for the quarter ended December 31, 2022. However, as provided in the Trust Agreement, the payment with respect to the Royalty Interest for any calendar quarter may not be less than zero.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release are subject to a number of risks and uncertainties beyond the control of the Trustee. The actual results, performance and prospects of the Trust could differ materially from those expressed or implied by forward-looking statements. Descriptions of some of the risks that could affect the future performance of the Trust appear in the Trust’s Annual Report on Form 10-K for the year ended December 31, 2022, the Trust’s subsequent Quarterly Reports on Form 10-Q, and the Trust’s other filings with the Securities and Exchange Commission. The Trust’s annual, quarterly and other filed reports are or will be available over the Internet at the SEC’s website at http://www.sec.gov. Neither the Trust nor the Trustee intends, and neither assumes any obligation, to update any of the statements included in this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230406005646/en/
The Bank of New York Mellon Trust Company, N.A.
Source: BP Prudhoe Bay Royalty Trust.
And that is why the stock has traded downward recently. Please do you own research before making a purchase, this is not and advice to buy or sell this stock.
Disclaimer, one of the staff at Investingport owns BPT stock and may add to his or her position or sell. This is not a buy or a sell advisory post.