A Prudent Investor
Value, growth, long/short equity, contrarian

BP Prudhoe Bay Royalty Trust: Where Is The Stock Headed?

I last wrote about BP Prudhoe Bay Royalty Trust (NYSE:BPT) on January 20, 2014 when BPT was trading at $75 per unit. It was awarded an Editor's Choice. Only Seeking Alpha Pro subscribers can access this article today. This article updates my previous thesis and assumptions.

Today, BPT is trading at around $86 per unit after its recent $3.01 cash distribution. This represents a total return of 18.67% in just three months. I estimated that BPT's fair value on January 20 was $83.76. Below is a chart comparing BPT with the S&P 500 Index over the same time period.

BPT handily beat the S&P 500 index over this short period.

So where is BPT headed in 2014 and...

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