BPT - BP Prudhoe Bay Royalty Trust
BP Prudhoe Bay Royalty Trust (BPT) is a trust that owns a royalty interest in oil and gas properties in the Prudhoe Bay oil field on the North Slope of Alaska. The trust was created in 1989 and became publicly traded in 1989. The trustee of the trust is Bank of New York Mellon Trust Company, N.A.
The trust receives royalties from the production of oil and gas from the Prudhoe Bay field, which is operated by BP Exploration (Alaska) Inc. The royalties are calculated based on the volume of production and the price of oil and gas. As a result, the amount of royalty income received by the trust can vary significantly from quarter to quarter. The trust has a limited life and is scheduled to terminate on December 31, 2027, or earlier if the cumulative royalties received by the trust reach $1 billion. Investing in BPT can provide exposure to the oil and gas industry, particularly in Alaska. However, it is important to note that BPT is a royalty trust and not a traditional oil and gas company, which can affect its financial performance and dividends. Additionally, the trust has a limited life, which may not be suitable for investors with a long-term investment horizon.
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