BP Prudhoe Bay Royalty Trust Announces No Unit Payment For Q1 2024
Portfolio Pulse from Benzinga Newsdesk
BP Prudhoe Bay Royalty Trust (NYSE:BPT) announced there will be no dividend payment for Q1 2024 due to the average daily closing WTI price being below the break-even price, resulting in a negative value for the payment calculation. The average Per Barrel Royalty was calculated as -$15.28, with average adjusted chargeable costs and production taxes contributing to the shortfall.
April 05, 2024 | 8:12 pm
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NEGATIVE IMPACT
BP Prudhoe Bay Royalty Trust (BPT) will not distribute a dividend for Q1 2024 due to negative royalty payment calculations, influenced by lower WTI prices and high chargeable costs.
The decision to not distribute a dividend is directly tied to the Trust's revenue mechanism, which was negatively impacted by the average WTI price falling below the break-even point. This situation directly affects BPT's attractiveness to income-focused investors and could lead to a negative short-term impact on its stock price.
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IMPORTANCE 90
RELEVANCE 100