May 1, 2013

BP Prudhoe Bay Royalty Trust (BPT) Annual Report for 2012

I still own some BP Prudhoe Bay Royalty Trust (BPT) shares in my Roth IRA.   I've been trying to decide when I should sell them.

I recently got the BPT annual report for 2012 in the mail.  I like to read the annual report of a company (or trust ) to get some more details on them.

Production :   Page 16 has a history of production for 2008 to 2012.   As of 2012 the working interests of the trust were ouputting 79.7 thousand barrels per day of Oil and 5.8 of Condensate.   That works out to 29M barrels of oil a year and 2.1M of condensate.

Reserves : Page 18 says: "BP Alaska has estimated that the net remaining proved reserves allocated to the Trust as of December 31, 2012 were 75.517 million barrels of oil and condensate,"

and they say:

"Based on the 2012 twelve-month average WTI Price of $94.71 per barrel, ... BP Alaska calculated that as of December 31, 2012 production of oil and condensate from the proved reserves allocated to the 1989 Working Interests will result in estimated future net revenues to the Trust of $2,176.0 million, with a present value of $1,314.9 million."

Page 22 says : "Royalty payments to the Trust are projected to cease after 2027"

I must be misunderstanding a detail in the report because as I figure it their current production rate and reserves would mean they only have about 3 years or oil left.  


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