Hilcorp North Slope, LLC Update on BPT

HOUSTON, July 21, 2025 /PRNewswire/ -- On June 2, 2025, Hilcorp North Slope, LLC ("Hilcorp"), formerly known as BP Exploration (Alaska), Inc. and the Grantor under that certain Overriding Royalty Conveyance (the "Conveyance") associated with the BP Prudhoe Bay Royalty Trust ("BPT"), notified the Trustee of BPT that it was declining its option to purchase the assets of BPT for $11,641,600, which represented the closing price of the Units on the New York Stock Exchange on December 31, 2024, the termination date of BPT. Hilcorp's internal evaluation of the BPT assets aligned with the December 31, 2024 valuation by BPT's advisors of de minimis value, which valuation was disclosed publicly by BPT in its Form 8-K on June 17, 2025.

As of June 17, 2025, BPT initiated a sales process of the remaining BPT assets in accordance with the Trust Agreement for BPT. Hilcorp has notified BPT, and is providing public notice with this press release, that it expects to participate in that sales process. In connection with any such bid, Hilcorp expects to factor in the escalating break-even amount for determining the applicable "Per Barrel Royalty" contained in the Conveyance, which is impacted by escalating Chargeable Costs per Barrel of Royalty Production, a Cost Adjustment Factor and Production Taxes, as defined in the Conveyance. If such escalating costs and expenses exceed the applicable WTI Price (as defined in the Conveyance), no payments would be payable on the Royalty Interest (as defined in the Conveyance).

Notwithstanding the above, Hilcorp reserves the right to determine whether or not to make a bid, and any bid amount, and does not intend to provide any further updates to this press release prior to making any bid.

Hilcorp North Slope, LLC

Hilcorp North Slope LLC is an affiliate of Hilcorp Energy Company, a privately held oil and natural gas exploration and production company. Headquartered in Houston, TX, Hilcorp Energy Company employs more than 3,400 full-time employees across nine states. 

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Nick Piatek
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SOURCE Hilcorp North Slope, LLC