Revenue and Earnings - Royalty revenues for the three months ended June 30, 2019, were $7,748,000, a decrease of 72.0% compared to $27,611,000 for the same period in 2018[9] - Cash earnings for the six months ended June 30, 2019, were $28,888,000, down 46.5% from $53,545,000 for the same period in 2018[9] - Total royalty revenues for the six months ended June 30, 2019, were $29,507, a decrease of $24,643 or 45.5% from $54,150 in 2018[60] - Cash earnings for the six months ended June 30, 2019, were $28,888, down $24,657 or 46.0% from $53,545 in the previous year[60] - Cash distributions for the same period were $28,844, a decrease of $24,763 or 46.2% compared to $53,607 in 2018[60] Cash Distributions - Cash distributions per unit for the three months ended June 30, 2019, were $0.3449, a decrease of 72.9% compared to $1.2748 for the same period in 2018[9] - Cash distributions decreased to $7,381, a drop of $19,901 or 72.9% compared to $27,282 in the prior year[55] Assets and Liabilities - Trust corpus at the end of the period on June 30, 2019, was $734,000, an increase of 6.1% from $692,000 at the end of December 31, 2018[7] - Total assets as of June 30, 2019, were $1,075,000, reflecting a 4.3% increase from $1,031,000 at the end of December 31, 2018[7] - Total liabilities and trust corpus as of June 30, 2019, were $1,075,000, up from $1,031,000 at the end of December 31, 2018[7] Production and Costs - Average net production for the quarter ended March 31, 2019, was 77.4 mb/d, a decrease of 7.2% from 83.4 mb/d in the same quarter of 2018[51] - Average net production from the 1989 Working Interest declined by 7.2% due to the naturally declining production rate from the Prudhoe Bay field and downtime impacts[52] - Adjusted chargeable costs increased to $46.23 per barrel in the first quarter of 2019, up 20.6% from $38.34 in the same quarter of 2018[51] - Adjusted Chargeable Costs increased by $7.01 or 19.7% to $42.52 per barrel, impacting royalty revenues negatively[57] Oil Prices and Market Impact - The Trust's revenues are significantly affected by fluctuations in oil prices, which are influenced by domestic and international supply and demand[43] - The average WTI price for the quarter ended March 31, 2019, was $54.87, down 12.8% from $62.96 in the same quarter of 2018[51] - The average WTI price for the six months ended March 31, 2019, was $56.87, a decrease of $2.31 or 3.9% from the previous year[57] Trust Management and Reserves - The Trust has established a cash reserve account sufficient to cover approximately one year's current and expected liabilities and expenses[17] - The Trust has maintained a cash reserve of $1,000,000 since 1999 to provide liquidity during periods without distributions[37] - The Trust intends to withhold $33,750 or 0.17% of funds available for distribution each quarter to gradually increase cash reserves by approximately $270,000[32] Administrative Expenses - Trust administrative expenses for the three months ended June 30, 2019, were $312,000, a decrease of 23.3% compared to $407,000 for the same period in 2018[9] - Administrative expenses increased slightly to $638, reflecting higher overall costs and timing differences in accruals[60]
BP Prudhoe Bay Royalty Trust(BPT) - 2019 Q2 - Quarterly Report