Latest news with #Hilcorp
Globe and Mail
01-07-2025
- Business
- Globe and Mail
BP Prudhoe Bay Royalty Trust Announces No Unit Payment for the Second Quarter of 2025 and Update on NYSE Delisting
BP Prudhoe Bay Royalty Trust (NYSE: BPT) announced that Unit holders of record on July 15, 2025 will not receive a dividend payment for the quarter ended June 30, 2025. As provided in the Trust Agreement, a quarterly royalty payment by Hilcorp North Slope, LLC to the Trust is the sum of the individual revenues attributed to the Trust as calculated each day during the quarter. The amount of revenue is determined by multiplying Royalty Production for each day in the calendar quarter by the Per Barrel Royalty for that day. Pursuant to the Trust Agreement, the Per Barrel Royalty for any day is the WTI Price for the day less the sum of (i) Chargeable Costs multiplied by the Cost Adjustment Factor and (ii) Production Taxes. For the three months ended June 30, 2025, the Per Barrel Royalty was calculated based on the following information: Average WTI Price $ 63.95 Average Adjusted Chargeable Costs $ 99.63 Average Production Taxes $ 2.15 Average Per Barrel Royalty $ (37.83 ) Average Net Production (mb/d) 63.3 The average daily closing WTI price was below the 'break-even' price for the quarter, resulting in a negative value for the payment calculation for the quarter. However, as provided in the Trust Agreement, the payment with respect to the Royalty Interest for any calendar quarter may not be less than zero. As previously disclosed, the Trust terminated at 11:59 PM on December 31, 2024, and The Bank of New York Mellon Trust Company, N.A., as trustee (the 'Trustee'), has commenced the process of winding up the affairs of the Trust. The Trustee cannot predict when the wind-up of the Trust will be completed. Delisting from NYSE The Trust also announced that on June 30, 2025, it had received notification from the New York Stock Exchange ('NYSE') of its determination to suspend trading of the Trust's units of beneficial interest (the 'Units'), effective as of the close of trading on June 30, 2025, and to initiate proceedings to delist the Units. The determination to commence the delisting proceeding results from the Trust's inability to satisfy the continued listing compliance standards set forth under Rule 802.01C of the NYSE Listed Company Manual because the average closing price of the Units fell below $1.00 over a 30 consecutive trading-day period that ended on December 30, 2024, and the Trust was unable to regain compliance with the applicable standards within a cure period that concluded on June 30, 2025. As a result of the suspension, the Units began trading on July 1, 2025, under the symbol 'BPPTU' on the Pink Limited Market ('OTC Pink'), which is operated by OTC Markets Group, Inc. To be quoted on OTC Pink, a market maker must sponsor the security and comply with SEC Rule 15c2-11 before it can initiate a quote in a specific security. OTC Pink is a significantly more limited market than the NYSE, and the quotation of the Units on OTC Pink may result in a less liquid market available for existing and potential unitholders and could further depress the trading price of the Units. There is no assurance that an active market in the Units will develop on OTC Pink. FORWARD LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release are subject to a number of risks and uncertainties beyond the control of the Trust. These forward-looking statements include the Trust's expectations regarding the timing of the transition of the quotation of the Units to OTC Pink, expectations regarding the trading of the Units on OTC Pink and the Trust asset sale process. Descriptions of some of the risks that could affect the future performance of the Trust appear in the Trust's Annual Report on Form 10-K for the year ended December 31, 2024, the Trust's subsequent Quarterly Reports on Form 10-Q, and the Trust's other filings with the Securities and Exchange Commission (the 'SEC'). The Trust's annual, quarterly and other filed reports are or will be available over the Internet at the SEC's website at The Trustee undertakes no obligation to update forward-looking statements after the date of this report, except as required by law, and all such forward-looking statements in this report are qualified in their entirety by the preceding cautionary statements.
Yahoo
27-06-2025
- Business
- Yahoo
San Juan Basin Royalty Trust (SJT) Declined This Week. Here is Why.
The share price of San Juan Basin Royalty Trust (NYSE:SJT) fell by 14.13% between June 18 and June 25, 2025, putting it among the Energy Stocks that Lost the Most This Week. An oil rig worker in overalls, examining a drill bit at the San Juan Basin. San Juan Basin Royalty Trust (NYSE:SJT) operates as an express trust that holds a 75% net overriding royalty interest in oil and natural gas properties in the San Juan Basin of northwestern New Mexico, distributing monthly royalty income to unit holders. The share price of San Juan Basin Royalty Trust (NYSE:SJT) declined after the company announced that it would not declare a monthly cash distribution to unitholders for June 2025, due to the application of net proceeds of $294,238 on excess production costs of approximately $14.77 million. The excess production costs accrued as a result of Hilcorp drilling two new horizontal wells in 2024. San Juan Basin Royalty Trust (NYSE:SJT) revealed that it will not receive royalty income until the excess costs are paid in full. The Trust clarified to its investors that no cash distributions will be made until future net proceeds are sufficient to pay its liabilities and replenish cash reserves. While we acknowledge the potential of SJT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and 12 Best Natural Gas Stocks to Buy According to Analysts Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Post
24-06-2025
- Business
- National Post
BP Prudhoe Bay Royalty Trust Offers Overriding Royalty in North America's Largest Oil Field
Article content Article content DALLAS — BP Prudhoe Bay Royalty Trust is marketing its overriding royalty interest (ORRI) in Alaska's Prudhoe Bay field—the most prolific conventional oil field in North America—as part of a planned dissolution of the Trust. RedOaks Energy Advisors is serving as exclusive advisor on the transaction. Article content Article content Discovered in 1968, Prudhoe Bay has produced more than 13 billion barrels of oil and remains a cornerstone of U.S. energy infrastructure. The field is currently operated by Hilcorp, the largest private oil and gas operator in the country, known for revitalizing mature assets and driving production growth. Article content The offered ORRI spans Hilcorp's position in the field and benefits from decades of stable, high-margin production. Because the cash flow from the ORRI occurs only above a certain price for WTI, the ORRI has not resulted in a royalty payment since Q4-2022. Cash flow from the ORRI has historically been strong, supported by a low projected PDP and PUD decline rate of 2% annually over the next five years. Continued investment by Hilcorp—including five active rigs and a targeted 5% production increase in 2025—offers potential upside for buyers. Article content RedOaks will provide access to a virtual data room (VDR) beginning June 24, 2025. Bids are due by July 29 at 12 p.m. CST. Article content Article content
Yahoo
20-06-2025
- Business
- Yahoo
San Juan Basin Royalty Trust Declares No Cash Distribution for June 2025
DALLAS, June 20, 2025 /PRNewswire/ -- Argent Trust Company, as the trustee (the "Trustee") of the San Juan Basin Royalty Trust (the "Trust") (NYSE: SJT), today reported that it will not declare a monthly cash distribution to the holders of its Units of beneficial interest (the "Unit Holders") due to the application of net proceeds of $294,238, which amount would otherwise be payable to the Trust as royalty income, to the balance of excess production costs accrued as a result of Hilcorp San Juan L.P.'s ("Hilcorp") drilling of two new horizonal wells in 2024. Excess production costs occur when production costs and capital expenditures exceed the gross proceeds for a certain period. The balance of cumulative excess production costs is currently approximately $14,767,940 gross ($11,075,955 net to the Trust), a decrease in the deficit of $392,317 gross ($294,238 net to the trust) from last month's reporting period. Hilcorp will continue to charge the balance of excess production costs to the Trust's net proceeds each month. Until the balance is paid in full, the Trust will not receive royalty income as all net proceeds will be applied to the balance of excess production costs. No cash distributions will be made by the Trust until future net proceeds are sufficient to pay Trust liabilities and replenish cash reserves. Hilcorp reported $4,558,987 of total revenue from the Subject Interests for the production month of April 2025, consisting of $4,403,222 of gas revenues and $155,765 of oil revenues. For the Subject Interests, Hilcorp reported $4,201,917 of production costs (excluding the balance of excess production costs) for the production month of April 2025, consisting of $2,510,928 of lease operating expenses, $568,685 of severance taxes, and $1,122,304 of capital costs. Based upon information provided to the Trust by Hilcorp, gas volumes for the Subject Interests for April 2025 totaled 2,349,703 Mcf (2,610,782 MMBtu), as compared to 2,448,569 Mcf (2,720,632 MMBtu) for March 2025. Dividing gas revenues by production volume yielded an average gas price for April 2025 of $1.87 per Mcf ($1.69 per MMBtu), a decrease of $0.95 per Mcf ($0.85 per MMBtu) as compared to the average gas price for March 2025 of $2.82 per Mcf ($2.54 per MMBtu). This month's Trust administrative expenses totaled $135,339. The increase in administrative expenses was attributable to differences in timing of the receipt and payment of certain expenses by the Trust. Interest income received by the Trust in the amount of $394 will be applied to cover a portion of this month's Trust administrative expenses. Pursuant to the Amended and Restated Royalty Trust Indenture, dated December 12, 2007 (as amended on February 15, 2024, by the First Amendment to the Amended and Restated Royalty Trust Indenture), the Trustee is authorized to retain, in its sole discretion, a cash reserve for payment of Trust liabilities that are contingent or uncertain or otherwise not currently due and payable. To cover Trust expenses during any period of revenue shortfall, which has resulted and may continue to result from lower commodity prices and increased capital expenditures and lease operating expenses under Hilcorp's 2024 capital project plan for the Subject Interests, the Trustee increased the cash reserves in March and April of 2024, such that total cash reserves were $1.8 million as of April 30, 2024. Interest income and cash reserves were utilized to pay Trust administrative expenses each month from May 2024 through May of 2025. As of May 31, 2025, the balance of cash reserves maintained by the Trustee was $32,959. On May 21, 2025, the Trust entered into a promissory note (the "Note") to establish a line of credit (the "Line of Credit") in the amount of $2,000,000 with Texas Bank, together with a mortgage to secure that Note. The Line of Credit is intended to cover the Trust's administrative expenses until the Trust receives royalty income in amounts sufficient to (a) repay the balance of excess production costs accrued as a result of Hilcorp San Juan L.P.'s drilling of two new horizonal wells in 2024, (b) replenish a reserve in the amount of $2,000,000, and (c) repay the principal due under the Note, after which time, the Trust will resume distributions of the net profits income to the holders of the Trust's units of beneficial interest. On June 18, 2025, cash reserves in the amount of $212 were utilized to pay interest accrued on the Line of Credit, such that the balance of cash reserves maintained by the trust is $32,747. Interest income in the amount of $394, a draw of $132,851 from the Trust's Line of Credit at Texas Bank, and $1883 of cash reserves remaining from an over withdrawal of funds from the reserves in April 2025 will be used to pay Trust administrative expenses for the month of June. Production from the Subject Interests continues to be gathered, processed, and sold under market sensitive and customary agreements, as recommended for approval by the Trust's Consultant. The Trustee continues to engage with Hilcorp regarding its ongoing accounting and reporting to the Trust, and the Trust's third-party compliance auditors continue to audit payments made by Hilcorp to the Trust, inclusive of sales revenues, production costs, capital expenditures, adjustments, actualizations, and recoupments. The Trust's auditing process has also included detailed analysis of Hilcorp's pricing and rates charged. As previously disclosed in the Trust's filings, these revenues and costs (along with all costs) are the subject of the Trust's ongoing comprehensive audit process by the Trust's professional consultants and outside counsel to analyze compliance with all the underlying operative Trust agreements and evaluate potential remedies in the event there is suspected non-compliance. As of July 21, 2025, the Trust will self-publish press releases on its website, and the release will not be included in any wire distribution, which has been the normal procedure for each monthly press release through June 20, 2025. The self-publication is due to the depletion of the Trust's cash reserves and conservation of the line of credit resources. The trust will self-publish press releases until such time as the cash reserves have been replenished and increased to $2.0 million. The Trust will continue to furnish unitholders with information through its website and Form 8-K filings with the Securities and Exchange Commission, which are available at Forward Looking Statements. Except for historical information contained in this news release, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements generally are accompanied by words such as "estimates," "anticipates," "could," "plan," or other words that convey the uncertainty of future events or outcomes. Forward-looking statements and the business prospects of San Juan Basin Royalty Trust are subject to a number of risks and uncertainties that may cause actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, certain information provided to the Trust by Hilcorp, volatility of oil and gas prices, governmental regulation or action, litigation, and uncertainties about estimates of reserves. These and other risks are described in the Trust's reports and other filings with the Securities and Exchange Commission. Contact: San Juan Basin Royalty Trust Argent Trust Company, Trustee Nancy Willis, Director of Royalty Trust Services Toll-free: (855) 588-7839 Fax: (214) 559-7010 Website: Email: trustee@ View original content: SOURCE San Juan Basin Royalty Trust Inicia sesión para acceder a tu portafolio
Yahoo
09-06-2025
- Business
- Yahoo
Amid gas crunch, Alaska could revoke leases from a company whose drilling has stalled
Natural gas production from offshore platforms in Cook Inlet, outside of Anchorage, has declined over the past several decades. The area's dominant producer, Hilcorp, has warned electric and heating utilities that they should not expect their supply contracts to be renewed when existing ones expire. (Nathaniel Herz/Northern Journal) Gov. Mike Dunleavy's administration is threatening to strip a company of oil and gas leases in Cook Inlet outside Anchorage, saying it's sitting on deposits that could delay an impending shortage of gas needed for heating and power generation in urban Alaska. The Alaska Department of Natural Resources recently placed in 'default' the Cosmopolitan Unit, a block leased by Texas-based BlueCrest Energy, saying it hasn't met commitments to drill. The company has held leases at Cosmopolitan for more than a decade. It conducted initial drilling several years ago but has not drilled any new wells since 2019, according to state records. Company executives say that BlueCrest experienced a cash crunch when, amid a budget crisis beginning in 2014, the state of Alaska chose not to pay tax credits to oil firms that had spent money on drilling. BlueCrest has also had to ask Alaska's economic development agency to approve delays in paying back a $30 million state loan. The state's new notice to BlueCrest, signed in May by Commissioner John Boyle, gives the company until Aug. 21 to show proof that it's secured investment to drill a $55 million new oil well, as well as to advance development of a new offshore platform that would target natural gas. That platform could cost $350 million or more, according to BlueCrest officials. 'We want to see aggressive, defined momentum towards putting our resources into active production,' Boyle said in an interview Thursday. 'We need to see some drilling. We need to see some action.' BlueCrest is negotiating with multiple companies about potential investment, Benjy Johnson, its chief executive, said in a phone interview. 'We're hopeful that we'll get it done,' he said. 'I think we will.' Johnson said he understands the state's perspective, but added that defaulting BlueCrest's leases is 'not the solution to the problem.' 'The solution to the problem is helping us get funding to drill these wells, and to get the gas development going,' he said. BlueCrest is one of the smaller companies active in the Cook Inlet basin, where the vast majority of the gas is produced by a large independent oil business, Hilcorp. Hilcorp has warned urban Alaska's heating and electric utilities that they shouldn't expect Hilcorp to renew their gas supply contracts when they expire in the coming years. In response, those utilities are advancing plans to import liquefied natural gas — but they also say that new local gas production could delay the need for imports. The supply crunch is serious enough that utilities and regulators have recently been discussing contingency plans for rolling blackouts. BlueCrest says its leases contain large 'proved reserves' of gas — an industry term meaning that a deposit's flow has been tested and that an engineering firm has validated it can be produced with 90% probability or higher. But building an offshore platform to access the gas would cost some $350 million. One of the other small companies operating in Cook Inlet, HEX, has moved ahead with gas drilling in each of the past two years — with help from a decision by Dunleavy's administration to reduce the royalty payments due from HEX to the state. Boyle, the natural resources commissioner, described the royalty reduction as a 'carrot.' 'But there's also the potential for sticks, if we don't see active movement on developing the rest of (HEX's) leased acreage,' Boyle said. 'And the same for BlueCrest and anyone else that we don't feel is fulfilling their obligations.' The state has a range of options if BlueCrest doesn't advance its drilling program, Boyle said. In his notice to the company, he wrote that his agency could shrink BlueCrest's Cosmopolitan Unit, or 'terminate' it. If the state takes back some of BlueCrest's leased acreage, Boyle said, there are 'definitely companies and entities that are willing to put money there to bring that gas to market.' BlueCrest could also decide to sell its leases to another company, or find a business partner that could help advance development, according to Boyle. BlueCrest and Hilcorp previously discussed a partnership to develop the Cosmopolitan Unit's gas, Northern Journal reported in 2023. But the discussions broke down because the two companies couldn't agree on how to divide potential costs and profits. Nathaniel Herz welcomes tips at natherz@ or (907) 793-0312. This article was originally published in Northern Journal, a newsletter from Herz. Subscribe at this link.
