Yasin Yamak
Recent Events
BP Prudhoe Bay's (NYSE:BPT) Trustee, The Bank of New York Mellon, announced on January 5 that BPT would make no quarterly distribution for the recently ended quarter, the fourth time in a row, as the average price for West
BP Prudhoe Bay Royalty Trust: Likely Termination This Year With No Further Distributions
Summary
- BP Prudhoe Bay's Trustee, The Bank of New York Mellon, announced that BPT will make no quarterly distribution in January for the fourth consecutive quarter.
- This is due to oil prices again being less than the artificially high and rapidly increasing chargeable cost the Trust must pay.
- The breakeven price has increased by more than $7 as of January 1; oil must now average $93 or more for BPT to breakeven; oil is now under $75.
- The Trustee's reserve for administrative expenses would need to be replenished if BPT does make a profit, increasing the minimum oil price required for unit owners to actually receive a payment by $1.50-$2 or more.
I am a private investor and occasional mountain climber. I hold an MBA from a top tier business school.
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