July 23, 2017
NYSE: BPT
BP PRUDHOE BAY ROYALTY TRUST
BUY
A+
A
A-
HOLD
B+
B
Annual Dividend Rate
$3.98
B-
C+
C
Annual Dividend Yield
19.83%
SELL
C-
STOCK PERFORMANCE (%)
3 Mo.
Price Change
4.97
D
Beta
-0.47
Sector: Energy
BPT BUSINESS DESCRIPTION
BP Prudhoe Bay Royalty Trust operates as a
grantor trust in the United States. The company
holds overriding royalty interest comprising a
non-operational interest in minerals in the Prudhoe
Bay oil field located on the North Slope of Alaska.
D+
D-
E+
E
E-
F
HOLD
Market Capitalization
$429.1 Million
Sub-Industry: Oil & Gas Exploration & Production
Weekly Price: (US$)
SMA (50)
RATING SINCE
52-Week Range
$15.00-$32.95
06/13/2017
Price as of 7/20/2017
$20.05
Source: S&P
SMA (100)
1 Year
2 Years
70
60
50
40
1 Yr.
18.49
3 Yr (Ann)
-39.74
12 Mo.
-35.20
-35.63
-35.55
3 Yr CAGR
-35.59
-35.96
-35.95
Ind Avg
13.70
-16.24
18.31
S&P 500
13.16
11.83
13.71
30
GROWTH (%)
20
Last Qtr
63.72
65.20
65.00
Revenues
Net Income
EPS
HOLD
SELL
HOLD
SELL
Volume in Millions
RETURN ON EQUITY (%)
BPT
7,729.42
13,837.15
48,058.45
Q1 2017
Q1 2016
Q1 2015
10
Rating History
10
5
2015
2016
0
2017
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
P/E COMPARISON
RECOMMENDATION
We rate BP PRUDHOE BAY ROYALTY TRUST (BPT) a HOLD. The primary factors that have impacted our rating
are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the
expectation of either a positive or negative performance for this stock relative to most other stocks. The
company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial
position with reasonable debt levels by most measures and solid stock price performance. However, as a
counter to these strengths, we find that the growth in the company's earnings per share has not been good.
8.25
BPT
55.33
24.66
Ind Avg
S&P 500
HIGHLIGHTS
BPT's very impressive revenue growth greatly exceeded the industry average of 31.9%. Since the same
quarter one year prior, revenues leaped by 63.7%. Growth in the company's revenue appears to have helped
boost the earnings per share.
EPS ANALYSIS¹ ($)
2015
2016
The gross profit margin for BP PRUDHOE BAY ROYALTY TRUST is currently very high, coming in at 100.00%.
BPT has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed
results of the gross profit margin, BPT's net profit margin of 99.05% significantly outperformed against the
industry.
Q1 0.99
Q4 0.68
Q3 0.69
Q1 0.60
Q2 0.07
Q4 0.70
Q3 1.47
Q2 1.00
Q1 2.69
BPT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a
relatively favorable sign. Along with this, the company maintains a quick ratio of 3.03, which clearly
demonstrates the ability to cover short-term cash needs.
2017
NA = not available NM = not meaningful
1 Compustat fiscal year convention is used for all fundamental
data items.
The company, on the basis of net income growth from the same quarter one year ago, has significantly
underperformed compared to the Oil, Gas & Consumable Fuels industry average, but is greater than that of
the S&P 500. The net income increased by 65.2% when compared to the same quarter one year prior, rising
from $12.88 million to $21.28 million.
Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This
is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas &
Consumable Fuels industry and the overall market, BP PRUDHOE BAY ROYALTY TRUST's return on equity
significantly exceeds that of both the industry average and the S&P 500.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.
Report Date: July 23, 2017
PAGE 1
July 23, 2017
NYSE: BPT
BP PRUDHOE BAY ROYALTY TRUST
Sector: Energy Oil & Gas Exploration & Production Source: S&P
Annual Dividend Rate
$3.98
Annual Dividend Yield
19.83%
PEER GROUP ANALYSIS
80%
PBT
FA
RA
VO
DMLP
BL
ERN
E
GPRK
UN
ISRL PHX
BCEI
FA
BPT
LE
-60%
B
RA
VO
Revenue Growth (TTM)
DNR
0%
PGH
100%
EBITDA Margin (TTM)
Companies with higher EBITDA margins and
revenue growth rates are outperforming companies
with lower EBITDA margins and revenue growth
rates. Companies for this scatter plot have a market
capitalization between $319.8 Million and $577.4
Million. Companies with NA or NM values do not
appear.
*EBITDA – Earnings Before Interest, Taxes, Depreciation and
Amortization.
REVENUE GROWTH AND EARNINGS YIELD
80%
PBT
FA
RA
VO
DMLP
BL
E
ERN
SN
DNRISRL PHX
UN
B
RA
VO
LE
-60%
52-Week Range
$15.00-$32.95
Price as of 7/20/2017
$20.05
The Oil, Gas & Consumable Fuels industry is cyclical in nature and is one of the most important globally
because it touches so many others. It is broken down into its component parts by the nature of activity
performed. Upstream activities are related to finding and producing commodities; midstream refers to the
transportation of product from the wellhead to intermediate customers; and, downstream includes the
refining, transformation and marketing of related products. Coal producers are integrated, much like the
players in alternative fuels like uranium. Some of the largest players in the industry are the integrated oil &
gas producers (aka Big Oil).
Close to two-thirds of the world’s energyneeds are satisfied by hydrocarbons (crude oil and natural gas).
Althoughconservation, increased efficiency and substitutes are gaining in prominence,they are not likely to
significantly reduce this dependence in the near future.Crude oil prices have moderated at present due to
lagging economies and newsupplies coming online. In 2004, West Texas Intermediate (WTI) crude oil
brokeout of its historic trading range of $10 to $40 per barrel on a steady climb tomore than $145 per barrel in
June 2008 before crashing to under $40 by the endof 2008. Since then the price of spot crude has climbed
back near the $90 to$110 range before falling again. Natural gas prices, responding to excesssupply, have
retreated to the $2 to $4 range per million BTU (British thermalunit). Coal prices are dependent on the energy
content of the type of coalconsidered and its location, but it, too, has climbed significantly over thepast few
years.
Following nearly 20 years of underinvestment,the supply of crude oil is now keeping pace with slackening
demand. Longer term demandshould grow at about 1.8% per year, meaning it is expected to grow more
than40% over the next 20 years. Natural gas demand is expected to rise over time,according to the American
Petroleum Institute, as its cleaner-burningproperties increase in value for industry. Coal consumption is
projected togrow at about 1.7% per year over the next 20 years, based on US EnergyInformation
Administration forecasts.
Analysis of companies in this industry beginsby forming a view of the global economy and geopolitics, which
is combined witha supply and demand analysis that leads to commodity price forecasts. At theindividual firm
level, how efficiently a company operates goes a long way indetermining its profitability. Supply management
is an important factor, too,as high commodity prices are affected by how much supply the industry as awhole
produces. Geographic positioning can also be important, as regionaleconomic cycles may not synch up well
with each other.
The so-called “supermajor” integrated oilcompanies include Exxon Mobil (XOM), BP Plc (BP), Chevron (CVX),
Total SA(TOT), and ConocoPhillips (COP). Some of the other major Exploration &Production firms include
Anadarko Petroleum (APC), DevonEnergy (DVN) and Apache (APA). On the Refining & Marketing level,
majorplayers include Valero Energy (VLO), Sunoco (SUN), and Tesoro (TSO). The majoruranium producer is
Cameco (CCJ).
PEER GROUP: Oil, Gas & Consumable Fuels
BCEI
FA
Revenue Growth (TTM)
GPRK
-2000%
Market Capitalization
$429.1 Million
INDUSTRY ANALYSIS
REVENUE GROWTH AND EBITDA MARGIN*
SN
Beta
-0.47
BPT
PGH
250%
Earnings Yield (TTM)
Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -56.8% and
74.9%. Companies with NA or NM values do not
appear.
Ticker
BPT
BCEI
DNR
GPRK
SN
DMLP
PBT
PGH
PHX
ERN
ISRL
Recent
Company Name
Price ($)
BP PRUDHOE BAY ROYALTY TR 20.05
BONANZA CREEK ENERGY INC
28.38
DENBURY RESOURCES INC
1.44
GEOPARK LTD
9.38
SANCHEZ ENERGY CORP
6.26
DORCHESTER MINERALS -LP
15.10
PERMIAN BASIN ROYALTY TRUST 9.18
PENGROWTH ENERGY CORP
0.74
PANHANDLE OIL & GAS INC
22.75
ERIN ENERGY CORP
1.60
ISRAMCO INC
117.65
Market
Cap ($M)
429
577
574
562
515
463
428
409
379
341
320
Price/
Earnings
8.25
NM
NM
NM
NM
16.97
16.11
NM
284.38
NM
34.00
Net Sales
TTM ($M)
53.28
203.68
1,038.06
222.81
485.35
44.16
27.87
452.40
41.02
104.16
55.89
Net Income
TTM ($M)
52.02
-245.99
-769.45
-36.20
-181.48
27.99
26.23
-405.00
1.18
-136.50
9.40
The peer group comparison is based on Major Oil & Gas Exploration & Production companies of comparable size.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.
Report Date: July 23, 2017
PAGE 2
July 23, 2017
NYSE: BPT
BP PRUDHOE BAY ROYALTY TRUST
Sector: Energy Oil & Gas Exploration & Production Source: S&P
Annual Dividend Rate
$3.98
Annual Dividend Yield
19.83%
COMPANY DESCRIPTION
BP Prudhoe Bay Royalty Trust operates as a grantor trust
in the United States. The company holds overriding
royalty interest comprising a non-operational interest in
minerals in the Prudhoe Bay oil field located on the North
Slope of Alaska. The Prudhoe Bay field extends
approximately 12 miles by 27 miles and contains
approximately 150,000 gross productive acres. As of
December 31, 2016, its estimated proved reserves were
9.376 million barrels of oil and condensate of which
9.204 million barrels are proved developed reserves and
0.172 million barrels are proved undeveloped reserves.
BP Prudhoe Bay Royalty Trust was founded in 1989 and
is based in Houston, Texas.
BP PRUDHOE BAY ROYALTY TRUST
601 Travis Street, Floor 16
Houston, TX 77002
USA
Phone: 713-483-6020
Beta
-0.47
Market Capitalization
$429.1 Million
52-Week Range
$15.00-$32.95
Price as of 7/20/2017
$20.05
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of BPT shares. It is provided in order to give you a deeper understanding of our
rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR
SCORE
1.0
Growth
out of 5 stars
weak
Measures the growth of both the company's income statement and
cash flow. On this factor, BPT has a growth score better than 10% of the
stocks we rate.
strong
2.0
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 30% of the companies we
cover.
strong
5.0
Efficiency
out of 5 stars
weak
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 90% of the companies we review.
strong
1.0
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is less volatile than 10% of the stocks we monitor.
strong
2.0
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 30% of the companies we analyze.
strong
5.0
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. The company's
dividend is higher than 90% of the companies we track.
strong
THESTREET RATINGS RESEARCH METHODOLOGY
TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.
Report Date: July 23, 2017
PAGE 3
July 23, 2017
NYSE: BPT
BP PRUDHOE BAY ROYALTY TRUST
Sector: Energy Oil & Gas Exploration & Production Source: S&P
Annual Dividend Rate
$3.98
Annual Dividend Yield
19.83%
Consensus EPS Estimates² ($)
IBES consensus estimates are provided by Thomson Financial
NA
NA
NA
NA
NA
NA
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Q1 FY17
21.48
21.28
21.28
21.28
Q1 FY16
13.12
12.88
12.88
12.88
Q1 FY17
1.01
1.01
0.00
0.67
Q1 FY16
1.00
1.00
0.00
0.58
Q1 FY17
100.00%
99.04%
99.04%
53.01
5,176.01%
7,729.42%
Q1 FY16
100.00%
98.16%
98.16%
82.05
8,064.77%
13,837.15%
Q1 FY17
3.03
0.00
0.00
NA
Q1 FY16
2.40
0.00
0.00
NA
Q1 FY17
21
0.99
0.99
0.03
NA
196,882
Q1 FY16
21
0.60
0.60
0.03
NA
357,296
Beta
-0.47
Market Capitalization
$429.1 Million
52-Week Range
$15.00-$32.95
Price as of 7/20/2017
$20.05
FINANCIAL ANALYSIS
BP PRUDHOE BAY ROYALTY TRUST's gross profit margin for the first quarter of its fiscal year 2017 is
essentially unchanged when compared to the same period a year ago. The company grew its sales and net
income significantly quarter versus same quarter a year prior, and was able to outpace the average
competitor in the industry when comparing revenue growth, but not when comparing net income growth. BP
PRUDHOE BAY ROYALTY TRUST is extremely liquid. Currently, the Quick Ratio is 3.03 which clearly shows the
ability to cover any short-term cash needs. BPT managed to increase the liquidity from the same period a
year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 15.23% from the same quarter last
year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial
difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to
use of median consensus estimates.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.
Report Date: July 23, 2017
PAGE 4
July 23, 2017
NYSE: BPT
BP PRUDHOE BAY ROYALTY TRUST
Sector: Energy Oil & Gas Exploration & Production Source: S&P
Annual Dividend Rate
$3.98
Annual Dividend Yield
19.83%
Beta
-0.47
Market Capitalization
$429.1 Million
52-Week Range
$15.00-$32.95
Price as of 7/20/2017
$20.05
Price/Earnings
HOLD: $21.30
HOLD: $20.85
2 Year Chart
SELL: $13.27
VALUATION
HOLD. BP PRUDHOE BAY ROYALTY TRUST's P/E ratio indicates a significant discount compared to an
average of 55.33 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P
500 average of 24.66. For additional comparison, its price-to-book ratio of 638.54 indicates a significant
premium versus the S&P 500 average of 3.07 and a significant premium versus the industry average of 79.95.
The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a
premium.
HOLD: $56.65
RATINGS HISTORY
Our rating for BP PRUDHOE BAY ROYALTY TRUST
was recently upgraded from Sell to Hold on
6/13/2017. As of 7/20/2017, the stock was trading at
a price of $20.05 which is 39.2% below its 52-week
high of $32.95 and 33.7% above its 52-week low of
$15.00.
$60
$40
$20
2015
1
2
3
premium
4
5
BPT 8.25
Peers 55.33
• Discount. A lower P/E ratio than its peers can
signify a less expensive stock or lower growth
expectations.
• BPT is trading at a significant discount to its peers.
2016
Price/Projected Earnings
MOST RECENT RATINGS CHANGES
Date
Price
Action
6/13/17
$20.85
Upgrade
3/30/17
$19.70 Downgrade
10/11/16
$21.30
Upgrade
4/4/16
$13.27 Downgrade
7/20/15
$56.65 No Change
From
Sell
Hold
Sell
Hold
Hold
To
Hold
Sell
Hold
Sell
Hold
RATINGS DEFINITIONS &
DISTRIBUTION OF THESTREET RATINGS
(as of 7/20/2017)
43.91% Buy - We believe that this stock has the
opportunity to appreciate and produce a total return of
more than 10% over the next 12 months.
30.50% Hold - We do not believe this stock offers
conclusive evidence to warrant the purchase or sale of
shares at this time and that its likelihood of positive total
return is roughly in balance with the risk of loss.
25.59% Sell - We believe that this stock is likely to
decline by more than 10% over the next 12 months, with
the risk involved too great to compensate for any
possible returns.
Research Contact: 212-321-5381
Sales Contact: 866-321-8726
2
3
premium
4
5
Price/Book
1
2
3
premium
4
5
Price/Sales
1
2
premium
3
4
5
Price to Earnings/Growth
4
5
discount
1
2
3
premium
4
5
discount
BPT NA
Peers 0.55
• Neutral. The PEG ratio is the stock’s P/E divided by
the consensus estimate of long-term earnings
growth. Faster growth can justify higher price
multiples.
• Ratio not available.
Earnings Growth
1
2
3
4
lower
5
higher
BPT -35.55
Peers 95.84
• Lower. Elevated earnings growth rates can lead to
capital appreciation and justify higher
price-to-earnings ratios.
• However, BPT is expected to significantly trail its
peers on the basis of its earnings growth rate.
Sales Growth
discount
BPT 8.05
Peers 2.26
• Premium. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
• BPT is trading at a significant premium to its
industry.
3
BPT NA
Peers 15.52
• Neutral. The P/CF ratio is the stock’s price divided
by the sum of the company's cash flow from
operations. It is useful for comparing companies
with different capital requirements or financing
structures.
• Ratio not available.
discount
BPT 638.54
Peers 79.95
• Premium. A higher price-to-book ratio makes a
stock less attractive to investors seeking stocks
with lower market values per dollar of equity on the
balance sheet.
• BPT is trading at a significant premium to its peers.
2
premium
discount
BPT NA
Peers 58.89
• Neutral. A lower price-to-projected earnings ratio
than its peers can signify a less expensive stock or
lower future growth potential.
• Ratio not available.
Price reflects the closing price as of the date listed, if available
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
1
1
Price/CashFlow
discount
1
2
3
lower
4
5
higher
BPT -35.20
Peers 7.37
• Lower. A sales growth rate that trails the industry
implies that a company is losing market share.
• BPT significantly trails its peers on the basis of
sales growth
DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
other third-party data providers.
TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2016. All rights reserved.
Report Date: July 23, 2017
PAGE 5