Hilcorp North Slope LLC Announces Update on BP Prudhoe Bay Royalty Trust

Update on BP Prudhoe Bay Royalty Trust by Hilcorp North Slope, LLC

On July 21, 2025, Hilcorp North Slope, LLC, previously known as BP Exploration (Alaska), Inc., shared significant developments regarding its involvement with the BP Prudhoe Bay Royalty Trust (BPT). On June 2, 2025, the company formally notified the BPT Trustee of its decision to decline the opportunity to purchase BPT assets valued at $11,641,600. This amount was directly linked to the closing value of the Units on the New York Stock Exchange as of December 31, 2024, the official termination date for the BPT.

Hilcorp’s assessment of the BPT assets coincided with the de minimis valuation disclosed by BPT’s advisors, as noted during the public announcement made by BPT in its Form 8-K on June 17, 2025. Following this, BPT initiated the process of selling off its remaining assets in compliance with the Trust Agreement governing BPT.

In this context, Hilcorp has expressed its intention to engage in the asset sales process. Notably, the company plans to consider the rising break-even amount when determining the applicable 'Per Barrel Royalty' as outlined in the Conveyance. This assessment is notably influenced by the increasing Chargeable Costs per Barrel of Royalty Production, the Cost Adjustment Factor, and Production Taxes as defined in the Conveyance. If the ever-increasing costs and expenses surpass the prevailing West Texas Intermediate (WTI) Price, no royalty payments would be made.

Despite these clear guidelines, Hilcorp retains the right to decide whether to pursue a bid and the specifics of any bid placed. The company has indicated that it will not be providing further updates related to this press release until it makes a bid decision.

About Hilcorp North Slope, LLC

Hilcorp North Slope, LLC is a subsidiary of Hilcorp Energy Company, a well-known private enterprise focused on oil and natural gas exploration and production. The parent company operates out of Houston, Texas, and employs over 3,400 individuals across nine different states, underscoring its significant footprint in the energy sector.

For additional inquiries or information, please reach out to media contact Nick Piatek at (713) 209-2461 or via email at [email protected]

The developments in Hilcorp’s management of the BP Prudhoe Bay Royalty Trust assets form a crucial piece of the ongoing changes within the energy landscape, emphasizing investment decisions tied closely to the fluctuating oil market. The future steps taken by Hilcorp could have substantial implications for stakeholders involved with the BPT.