BP Prudhoe Bay Royalty Trust (BPT): Business Model Canvas [Dec-2025 Updated]

If you were holding units in the BP Prudhoe Bay Royalty Trust (BPT), you know the story has fundamentally changed from chasing oil royalties to managing a final wind-down. As a finance vet who's seen plenty of these transitions, let me cut to the chase: the core asset-the Overriding Royalty Interest-is gone, sold for $3.7 million as of October 2025. What matters now is the final act: settling liabilities and getting that last check into your hands, which was pegged around $0.23 per unit. Below, I break down the Business Model Canvas for this liquidation, showing exactly how the Trustee is wrapping up this chapter, from key activities to the final cost structure that ate into the proceeds. You'll want to see the numbers behind this final distribution.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Key Partnerships

The final phase of the BP Prudhoe Bay Royalty Trust involved a defined set of external entities critical to the mandated wind-up following the Trust termination at 11:59 PM on December 31, 2024.

The core of the partnership structure revolved around the sale of the overriding royalty interest (ORRI) and the subsequent final distribution to unitholders. The Trust Agreement required the Trustee to sell all assets for cash upon termination.

Key relationships and associated figures include:

• Hilcorp North Slope, LLC (HNS) declined its option to purchase the Trust assets on June 2, 2025.
• HNS was the entity responsible for the quarterly royalty payment calculation, which was determined by the WTI Price less Chargeable Costs and Production Taxes.
• HNS targeted a 5% production increase in 2025, supported by five active rigs.
• The projected PDP and PUD decline rate supported by HNS investment was 2% annually over the next five years.

The following table details the primary external partners involved in the asset disposition and administration:

The culmination of the Trustee's actions, in partnership with the buyer, resulted in a significant payout to unitholders.

• The final distribution announced on October 9, 2025, was approximately $4.8 million.
• This final distribution equated to $0.23 per unit.
• The record date for this final distribution was the close of business on October 15, 2025.
• As of September 22, 2025, 99.7% of the Trust's total 21,400,000 units outstanding were held by Cede & Co.

The Trustee, The Bank of New York Mellon Trust Company, N.A., was also responsible for managing the cash reserve previously withheld to cover Trust expenses when royalty revenues were insufficient to pay expenses.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Key Activities

You're looking at the final, critical steps for BP Prudhoe Bay Royalty Trust (BPT) as it concludes its existence. The Key Activities here aren't about ongoing operations; they are purely about liquidation and distribution, managed by The Bank of New York Mellon Trust Company, N.A., as trustee.

Executing the Trust's termination and winding-up process

The Trust's operational life ended officially at 11:59 PM on December 31, 2024. This termination was triggered because the net revenues from the Royalty Interest for two successive years, 2023 and 2024, were less than $1.0 million per year. Following this, the Trustee commenced the winding-up process. The Trust's units will be canceled after the final cash distribution, and the Trust will cease its reporting obligations with the SEC.

The Trustee's activities included:

• Obtaining a third-party opinion on asset fair market value as of the termination date.
• Managing the sale process for the Overriding Royalty Interest (ORI).
• Determining the final cash available for distribution.

Selling the Overriding Royalty Interest asset

The primary asset, the Overriding Royalty Interest (ORI) in the Prudhoe Bay field, was marketed after Hilcorp North Slope, LLC (HNS) declined to exercise its purchase option. RedOaks Energy Advisors, LLC advised on the sale. The asset was sold to GREP V Holdings, L.P. The final sale price for the ORI was $3.7 million in cash. This transaction was announced around October 1, 2025, and immediately halted regular quarterly royalty payments.

Here's a look at the key financial components leading to the final payout:

Settling all outstanding Trust liabilities and administrative expenses

Before distributing proceeds, the Trustee had to account for and settle all remaining obligations. This involves deducting administrative costs and any amounts held back for contingent liabilities from the cash on hand and the ORI sale proceeds. For context on administrative burden, operating costs for the last two reported quarters prior to the final distribution were approximately $500k and $150k. The Trustee also managed the release of a previously withheld cash reserve of approximately $1.8 million, which was added to the final pool for unitholders.

Calculating and distributing final proceeds to unitholders

The culmination of the Key Activities is the final cash distribution to the unitholders of record. The Trustee announced a final distribution on October 9, 2025, payable on or about October 20, 2025, to those holding units as of the close of business on October 15, 2025. This distribution marks the conclusion of the Trust's existence, and the units will be canceled.

The final distribution details are as follows:

• Total Final Distribution Amount: Approximately $4.8 million.
• Distribution Per Unit: $0.23 per unit.
• Current Market Cap (as of 10/10/2025): $4.65M.
• The Trustee will make a subsequent distribution only if any cash reserves remain after paying all estimated final expenses and liabilities.

That final per-unit amount of $0.23 is what you're focused on now.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Key Resources

You're looking at the core assets that defined the final phase of BP Prudhoe Bay Royalty Trust (BPT) as it wound down its existence following termination on December 31, 2024. The Key Resources shifted from an income-generating asset to the instruments governing its final cash distribution.

The primary, and ultimately sold, Key Resource was the Overriding Royalty Interest (ORI). This interest, which was the sole source of revenue for the Trust, was sold to GREP V Holdings, L.P. The sale was effective July 1, 2025, and closed shortly thereafter, marking the definitive end of any future royalty payments to the Trust.

Here's a quick look at the financial artifacts of this final transaction and the remaining liquidity:

The Trust Agreement itself is a critical governing resource, dictating the entire liquidation process. It sets the rules for what happens after the Trust terminates, which occurred because net revenues from the Royalty Interest were less than $1.0 million per year for two successive years (2023 and 2024). The Bank of New York Mellon Trust Company, N.A., acting as trustee, relies on this document for its final actions.

The Trust Agreement mandates specific steps for the Trustee, which are now the operational Key Resources for the wind-up:

• Sell for cash all Trust assets other than existing cash.
• Deduct all operating costs required to wind up the Trust.
• Establish a contingency cash reserve to cover estimated remaining liabilities.
• Distribute the remainder, including the released cash reserve, to unitholders.

The Trustee's authority to release the approximately $1.8 million from the cash reserve was contingent upon covering estimated expenses and liabilities. Any amount left after paying those final obligations is slated for a subsequent final distribution to unitholders of record on October 15, 2025.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Value Propositions

You're looking at the final chapter for BP Prudhoe Bay Royalty Trust (BPT), and the value proposition shifts entirely from ongoing royalty payments to final liquidation. The core value now is delivering the remaining capital back to you, the unitholder, while formally closing the books.

Providing a final, one-time capital distribution to unitholders.

The primary value proposition at this stage is the realization of the residual value following the asset sale. This is not a regular quarterly royalty payment; this is the wind-up distribution. You should expect this to be the final payout, though a small subsequent distribution is possible if reserves remain after final expenses.

Here are the key figures for this final capital return event:

This final distribution is composed of two main sources, which is important for understanding the finality of the event. Honestly, the prior quarters offered no return, so this is the only cash event for a while.

• Net proceeds from the sale of the overriding royalty interest: $3.7 million in cash.
• Release from the cash reserve previously withheld by the Trustee: Approximately $1.8 million.

Transparently concluding the Trust's legal existence per the Trust Agreement.

The Trust terminated at 11:59 PM on December 31, 2024, as per the Trust Agreement, which mandates termination when net revenues for two successive years are less than $1.0 million per year. The asset sale and final distribution are the mechanisms for concluding the legal entity. Following this final distribution, the Trust's units will be canceled, and the Trust will cease its reporting obligations with the SEC.

The process involved several key steps leading to this conclusion:

• Trust Termination Date: December 31, 2024.
• Prior Quarter Payments: No unit payment for the quarter ended March 31, 2025.
• Subsequent Quarter Payments: No unit payment for the quarter ended June 30, 2025.
• NYSE Delisting: Trading suspended effective June 30, 2025, after the average closing price fell below $1.00 over 30 consecutive trading days ending December 30, 2024.

Monetizing the remaining royalty asset through a sale process.

Since Hilcorp North Slope, LLC (HNS) declined its purchase option on June 2, 2025, the Trustee was required to sell the asset on the open market. The value realized from this monetization directly funds the final distribution.

Here's a look at the asset sale mechanics:

The Trustee engaged RedOaks Energy Advisors, LLC to manage this sale process. To be fair, the initial valuation opinion from RedOaks for the HNS option calculation reflected a de minimis value as of the termination date, which was not intended for current asset bids. The actual sale price was $3.7 million.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Customer Relationships

You're navigating the final stages of a liquidating entity, so the relationship with the remaining unitholders is purely administrative and transactional now. The focus isn't on ongoing service but on the legally mandated wind-up process, which is a stark departure from the Trust's historical income-distribution model.

Transactional communication regarding the wind-up and delisting

Transactional communication centered on the finality of the Trust's existence and the change in trading venue. The Trust officially terminated at 11:59 PM on December 31, 2024. Following this, the Trustee, The Bank of New York Mellon Trust Company, N.A., commenced the process of winding up the affairs. A major transactional event was the delisting from the New York Stock Exchange (NYSE). The NYSE determined to suspend trading, effective as of the close of trading on June 30, 2025, 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. Consequently, the units began trading on the OTC Pink Limited Market starting July 1, 2025, under the symbol "BPPTU". This shift meant the relationship moved from a major exchange environment to a significantly more limited market, potentially resulting in less liquidity for unitholders.

The communication also confirmed the cessation of regular royalty payments due to negative per barrel royalty calculations for recent quarters:

• No unit payment for the quarter ended March 31, 2025 (Record Date: April 15, 2025).
• No dividend payment for the quarter ended June 30, 2025 (Record Date: July 15, 2025).

Formal notification of the final distribution amount and date

The most critical communication for the remaining customer base was the formal notification of the final cash distribution following the asset sale. The Trustee announced a distribution on or about October 20, 2025, to holders of record as of the close of business on October 15, 2025. This distribution is expected to be the final distribution. The total amount distributed was approximately $4.8 million, equating to $0.23 per unit.

Here's the quick math on the source of those final funds:

The stock transfer books for the units were set to close at the close of business on October 15, 2025, for this final payment. The Financial Industry Regulatory Authority, Inc. (FINRA) sets the ex-date, which determines which street name holders are eligible, and this date had not been set at the time of the announcement. Any subsequent distribution of remaining cash reserves, following the payment of estimated remaining expenses and liabilities, would also be made to holders of record as of the close of business on October 15, 2025.

Investor relations managed by the Trustee for administrative clarity

Investor relations, managed by The Bank of New York Mellon Trust Company, N.A. as the Trustee, is now entirely focused on administrative clarity during the liquidation. The Trustee's role is legally defined by the Trust Agreement to sell all non-cash assets, deduct winding-up costs and contingency reserves, and distribute the remainder. The Trustee engaged RedOaks Energy Advisors, LLC to provide the fair market value opinion to Hilcorp North Slope, LLC ("HNS") after HNS declined to exercise its purchase option, which was based on the greater of fair market value or $11,641,600. This entire process is about executing the wind-up, not managing ongoing investor sentiment.

The relationship is characterized by the structure of the remaining unitholders, which reflects the exit of large institutional players:

• Total outstanding units: 21,400,000.
• Institutional ownership as of 2025: A mere 5.66%.
• Unitholder of record as of September 22, 2025: 99.7% held by Cede & Co. (DTC nominee).

For direct administrative inquiries, the contact provided by the Trustee was Elaina Rodgers, Vice President, at 713-483-6020.

Finance: draft final cash reconciliation schedule by next Tuesday.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Channels

You're looking at how BP Prudhoe Bay Royalty Trust (BPT) communicated its final steps as it wound down operations in late 2025. For a trust in liquidation, the channels shift entirely from investor relations focused on future performance to mandatory disclosure and final payout mechanics. It's all about closing the books, not opening new markets.

Press releases via Business Wire for major announcements (e.g., sale, final distribution)

Business Wire served as the primary public-facing channel for the most critical, time-sensitive updates regarding the Trust's final actions. These releases provided the hard numbers you need to track the wind-up process. For instance, the announcement on October 9, 2025, detailed the final cash distribution.

This final distribution was set at approximately $4.8 million total, translating to $0.23 per unit.

Here's a breakdown of the components making up that final payout, which you can see clearly laid out:

• Net proceeds from the overriding royalty interest sale to GREP V Holdings, L.P.: $3.7 million in cash.
• Release from the cash reserve previously withheld by the Trustee: approximately $1.8 million.

The record date for this final distribution was the close of business on October 15, 2025, with payment expected on or about October 20, 2025. Remember, the Trust officially terminated at 11:59 PM on December 31, 2024, so these channels were purely for executing the liquidation mandated by the Trust Agreement.

SEC filings (e.g., Form 8-K) to formally disclose liquidation steps

The Securities and Exchange Commission (SEC) filings were the formal, legally required method for documenting the liquidation steps. Since the Trust terminated, the focus shifted to filing the necessary paperwork to cease being a reporting entity. The Bank of New York Mellon Trust Company, N.A., as trustee, used these filings to confirm the asset sale process, which commenced on June 17, 2025.

A key filing was the Form 8-K issued on July 1, 2025, which formally disclosed the suspension of trading on the NYSE and the transition to OTC Pink. The Trust confirmed it will cease making filings with the SEC after the filing of the Form 15, with the entire winding up process expected to be complete before the end of 2025.

The table below summarizes key dates and associated disclosures:

NYSE/OTC market for trading of units until delisting is complete

The trading venue itself was a critical channel, though one that deteriorated rapidly as the Trust entered liquidation. The units were suspended from the New York Stock Exchange (NYSE) immediately following the close of trading on June 30, 2025. This suspension happened because the average closing unit price fell below the $1.00 standard over a consecutive 30 trading-day period.

Effective July 1, 2025, the units began trading on the Pink Limited Market, known as OTC Pink, under the symbol "BPPTU". This transition to OTC Pink is a channel change that typically means reduced liquidity and potentially depressed trading prices for existing unitholders.

To give you a sense of the market environment right at the point of transition, here are the figures from the last day of NYSE trading:

• Last Price on NYSE: $0.50.
• Closing Price: $0.51.
• Change Percentage: -2.33%.
• Volume on that day: 98,442 units.
• Total outstanding units as of September 22, 2025: 21,400,000.

The market price on December 31, 2024, was used in a calculation related to Hilcorp's option to buy the assets, cited at $0.54 4. You see the price action reflecting the end of the line.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Customer Segments

You're looking at the final structure of the BP Prudhoe Bay Royalty Trust (BPT) customer base as the wind-up process nears completion following the December 31, 2024, termination date.

The Trust's total outstanding Units of Beneficial Interest as of September 22, 2025, stood at 21,400,000 units. This group represents the ultimate economic beneficiaries of the Trust's remaining assets and final distributions.

The distribution activity in late 2025 clearly defines the final interaction with these customers. For instance, the final distribution announced on October 9, 2025, was approximately $4.8 million, equating to $0.23 per unit, payable on or about October 20, 2025, to holders of record as of October 15, 2025. Prior to this, the Trust announced no unit payment for the quarter ended June 30, 2025, to holders of record on July 15, 2025.

The nature of these investors is heavily institutionalized, which directly relates to the second segment.

Public Unitholders (Investors) Holding the Units of Beneficial Interest

• The final record date for entitlement to the final cash distribution was October 15, 2025.
• The average Per Barrel Royalty calculation for the three months ended June 30, 2025, resulted in a negative $(37.83).
• The Trust was suspended from trading on the NYSE, effective June 30, 2025.

Brokerage Firms and Custodians Holding Units on Behalf of Investors

This segment acts as the direct record holder for the vast majority of individual investors. The structure shows near-total reliance on the central depository system for unit registration.

As of September 22, 2025, a staggering 99.7% of the Trust's total 21,400,000 units outstanding were held by Cede & Co., which is the nominee for The Depository Trust Company. This means brokerage firms and custodians hold the units in 'street name' for the ultimate beneficial owners.

The Trustee noted that the ex-date for the final distribution, which determines which street name holders are eligible, was yet to be set by The Financial Industry Regulatory Authority, Inc. (FINRA).

Here are the key unit statistics as of the final reporting periods in 2025:

Finance: draft final cash distribution reconciliation by next Tuesday.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Cost Structure

You're looking at the final chapter of BP Prudhoe Bay Royalty Trust (BPT)'s existence, so the cost structure is entirely dominated by wind-up activities and the operational costs that forced the termination. Honestly, the cost structure is what killed the Trust, not a lack of revenue potential in a vacuum.

The primary, recurring costs that ultimately triggered the Trust's termination involved the deductions taken directly from the royalty calculation. The Trust agreement required the Per Barrel Royalty to be the WTI Price less the sum of (i) Chargeable Costs multiplied by the Cost Adjustment Factor and (ii) Production Taxes. The failure to generate positive net revenues for two successive years, 2023 and 2024, where net revenues were less than $1.0 million per year, caused the termination on December 31, 2024.

Here's how the per-barrel deductions looked in the final reported quarters, which clearly show the pressure:

Beyond the operational deductions, the wind-up process introduced specific, one-time cost categories that the Trustee, The Bank of New York Mellon Trust Company, N.A., had to manage. Trust expenses generally always included Trustee's fees, engineering fees, accounting and legal fees, production taxes, and other chargeable costs.

The specific costs associated with the wind-up and final administration include:

• Trustee's fees and administrative expenses, approximately $1.605 million for the LTM ending June 30, 2025.
• Legal, accounting, and engineering fees related to the wind-up, with estimated operating costs for the wind-up period (Q3 2024 through Q3 2025) estimated around $2.0 million, which included about $0.5 million related to terminating the trust.
• A contingency reserve was established to cover future liabilities and final tax settlements. Approximately $1.8 million was initially withheld from the asset sale proceeds as a cash reserve to provide liquidity for Trust expenses during periods when royalty revenues were insufficient.

The final distribution on or about October 20, 2025, was largely driven by the asset sale proceeds, but it also included the release of that reserve. The distribution represented the net proceeds from the sale of the overriding royalty interest to GREP V Holdings, L.P. for a purchase price of $3.7 million in cash, plus the release of approximately $1.8 million from the cash reserve. The Trustee intends to file a Form 15 to suspend reporting obligations after this final distribution.

BP Prudhoe Bay Royalty Trust (BPT) - Canvas Business Model: Revenue Streams

You're looking at the final chapter for BP Prudhoe Bay Royalty Trust (BPT), so the revenue streams are all about liquidation now, not ongoing operations. The core income source, the overriding royalty interest in the Prudhoe Bay field, has effectively stopped generating distributable cash flow for 2025.

The Trust terminated effective December 31, 2024, because net revenues for two successive years, 2023 and 2024, were less than $1.0 million per year. This termination triggered the mandatory sale of the Trust assets.

Here's the quick math on the royalty performance that led to this point:

• Zero royalty revenue from the Prudhoe Bay interest for all of 2025 is the reality you face.
• The Q1 2025 Per Barrel Royalty was a negative $(29.85).
• No unit payment was announced for the quarter ended June 30, 2025, either.

The entire revenue picture for late 2025 is dominated by the asset sale proceeds and the final return of capital to unitholders. The Trustee is now focused on distributing the net proceeds from this sale, plus any remaining cash reserves, after paying wind-up expenses. If onboarding takes 14+ days, churn risk rises-though here, the risk is just the final administrative cleanup.

The key financial events defining the revenue streams for the wind-up are summarized below:

This final distribution of approximately $4.8 million, or $0.23 per unit, announced on October 9, 2025, is expected to be the last one made. It represents the net proceeds from the sale of the overriding royalty interest for $3.7 million in cash, plus the release of approximately $1.8 million from the cash reserve previously held by the Trustee to cover expenses during low-revenue periods. The Trust's units will be canceled following this payment, and the Trust will cease its reporting obligations with the SEC. Defintely, this marks the end of the revenue-generating structure for BPT.