BPT Intrinsic Value Calculation – BP PRUDHOE BAY ROYALTY TRUST Reports FY2023 Q2 Earnings Results on June 30 2023
August 22, 2023
☀️Earnings Overview
On June 30, 2023, BP ($NYSE:BPT) Prudhoe Bay Royalty Trust announced their financial results for the second quarter of FY2023; total revenue was USD 0.0 million, a decline of 100.0% from the same quarter last year, and net income decreased to USD -0.44 million, from 23.28 million in the previous year.
Price History
On Wednesday, June 30 2023, BP Prudhoe Bay Royalty Trust reported their financial earnings for the second quarter of FY2023. The stock opened at $7.5 and closed at $6.9, up by 1.3% from its previous closing price of $6.8. This is the second consecutive quarter in which BP Prudhoe Bay Royalty Trust has seen a significant increase in their stock prices. This is due to the fact that the company’s operations have been profitable in the last two quarters, demonstrating their ability to create value for their shareholders. The trust also announced that they have paid out a special dividend of $2 per share to holders of record as of June 30, 2023.
This dividend is a reflection of the company’s continued commitment to returning value to their investors. Overall, BP Prudhoe Bay Royalty Trust’s second quarter results show a promising outlook for FY2023 and beyond. Investors are encouraged to keep an eye on this company as they continue to create value for their shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BPT. More…
| Total Revenues | Net Income | Net Margin |
| 52.31 | 51.09 | 97.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BPT. More…
| Operations | Investing | Financing |
| 7.59 | – | -2.01 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BPT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.62 | 0.16 | 0.04 |
Key Ratios Snapshot
Some of the financial key ratios for BPT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.1% | 23.0% | 97.3% |
| FCF Margin | ROE | ROA |
| 80.6% | 5675.5% | 565.9% |
Analysis – BPT Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of BP PRUDHOE BAY ROYALTY TRUST’s financials. Our proprietary Valuation Line indicates that the intrinsic value of BP PRUDHOE BAY ROYALTY TRUST share is approximately $16.4. However, the current price of BP PRUDHOE BAY ROYALTY TRUST stock is only $6.9, making it significantly undervalued by 57.8%. Therefore, at GoodWhale we believe that BP PRUDHOE BAY ROYALTY TRUST stock presents a great opportunity for investors to capitalize on its potential upside. More…
Peers
The competition between BP Prudhoe Bay Royalty Trust and its competitors, Treasure Island Royalty Trust, Chesapeake Granite Wash Trust, and VOC Energy Trust, is intense. Each of these trusts has its own unique set of advantages and disadvantages, which make them competitive in the marketplace. As a result, investors must carefully consider their options before selecting a trust for their portfolio.
– Treasure Island Royalty Trust ($OTCPK:TISDZ)
Chesapeake Granite Wash Trust is an energy exploration and production company that focuses on natural gas and natural gas liquids assets in the Granite Wash formation. The company’s market capitalization as of 2023 is 52.83M, which reflects the value of the company’s outstanding shares. Chesapeake Granite Wash Trust also has an impressive Return on Equity of 10.92%, meaning that the company has been successful in its use of equity to generate profits. This suggests that the company is making effective use of its resources and shareholders are likely to experience returns on their investments.
– Chesapeake Granite Wash Trust ($OTCPK:CHKR)
VOC Energy Trust is an energy trust based in Texas. It is a publicly traded trust that focuses on acquiring and holding oil and natural gas properties for the benefit of its unitholders. As of 2023, VOC Energy Trust has a market cap of 172.04M, which is indicative of the company’s size and value in the industry. Its Return on Equity (ROE) stands at 4.06%. This indicates that for every dollar of shareholders’ equity, it generates $0.04 of earnings. Its ROE is lower than the industry average of 8.22%, which is largely due to its higher debt levels.
Summary
Investors should be wary of BP Prudhoe Bay Royalty Trust (BP) after its release of Q2 FY2023 earnings. In comparison to the same period last year, total revenue decreased by a significant 100.0% to USD 0.0 million and net income decreased from USD 23.28 million to USD -0.44 million. These unfavourable results suggest that BP is currently going through a period of financial difficulty and investors should take this into account before considering an investment in the company.
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