BPT Investment Analysis Report & Stock Research, BP Prudhoe Bay Royalty Trust

BP Prudhoe Bay Royalty Trust (BPT)

BPT Stock Report

2-Year Price History

View Larger BPT Chart
NYSE:BPT
$83.30
(2/9 10:21AM)
+0.7%
Open$83.13 Mkt Cap$1.8 Billion
High$83.38 52Wk High$90.00
Low$82.77 52Wk Low$50.04
Volume47,568 Avg Vol 10D128,500

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BPT Revenue

As a value investing shop, we are interested in seeing how BPT's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 9.38x and the low end of the range at 5.55x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for BPT of 11.31x is significantly above its historical average. This places BPT at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 51% merely to return BPT to its historical average.

BPT Cash Earnings

Looking at BPT specifically in their Cash Earnings capabilities, Ockham views BPT as significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for BPT to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 10.68 and a 6.33 low over the same period.

Just recall that when a stock's price, as in the cases of BPT, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for BPT's Price to Cash Earnings ratio is 34% below the current ratio of 11.40. That is not an insignificant amount, and diminishes our overall outlook on BPT. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.

BPT Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for BPT to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.

The estimated annual dividend for BPT is $14.45 producing a current dividend yield of 17.56%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from BPT against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from BPT over previous years was 28.88% while the lowest dividend yield was 7.58%. Management at BPT needs to get the current dividend yield above the historical median before we are comfortable from this point of view.

Peer Comparison

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BP Prudhoe Bay Royalty Trust Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including BPT) 11.86 1.50 » 39.47 1.91 0.29 » 2.96 35.10% 12.96%
*10 year range does not include current year values
MarkWest Energy Partners, Limited Partnership MWE $1.8 Billion $27.47 15.94 1.17 » 20.05 1.57 0.21 » 3.93 62.66% 8.10%
BP Prudhoe Bay Royalty Trust BPT $1.8 Billion $82.71 11.40 4.20 » 13.20 11.31 3.28 » 13.06 35.13% 2408.08%
Comstock Resources, Inc. CRK $1.7 Billion $37.32 22.47 1.69 » 31.94 5.75 0.84 » 7.47 19.11% 13.32%
Oil States International, Inc. OIS $1.7 Billion $34.20 12.32 2.24 » 14.28 0.70 0.21 » 1.26 32.44% 18.18%
Tesoro Corp. TSO $1.7 Billion $11.81 2.91 0.91 » 69.55 0.10 0.01 » 0.41 26.19% 22.14%
Regency Energy Partners Limited Partnership RGNC $1.7 Billion $20.40 5.66 1.49 » 61.54 1.46 0.16 » 1.74 n/a 3.07%
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Power Lunch

BP Prudhoe Bay Royalty Trust (BPT) Discussed on CNBC's Power Lunch

BP Prudhoe Bay Royalty Trust is in the news. Find out how this impacts BPT trading on Ockham Research.

The fmoc responded with and since december, our policy interest rate has been essentially zero. In addition, the fmoc has made clear that it bpt expects economic conditions to warrant holding the funds rate low for an extended period. However, given the ongoing problems in credit marks, conventional monetary policy

“… ngoing problems in credit marks, conventional monetary policy …”

Mad Money

BP Prudhoe Bay Royalty Trust (BPT) Discussed on CNBC's Mad Money

BP Prudhoe Bay Royalty Trust is in the news. Find out how this impacts BPT trading on Ockham Research.

The big story today, not aig bonuses as much as we all hate those guys, is that oil's back above $50. I think it's headed $10 higher. I think you ought to look at bp and bpt as terrific dividend catch-up plays. They're trading like crudes in the 30s. Wally? Come on, let it rock, wally! >> hi, jim.

“… y? Come on, let it rock, wally! >> hi, jim. …”

Mad Money

BP Prudhoe Bay Royalty Trust (BPT) Discussed on CNBC's Mad Money

BP Prudhoe Bay Royalty Trust is in the news. Find out how this impacts BPT trading on Ockham Research.

That's down 45% from november. 45% from november 7th. In just five months we dropped the rigs we've added in the last four years. All of the more reason to like bp and bpt. O I recommend another energy trust. That's symbol bpt at $8.04. The stock's now at $8.21. That's a 27% gain. It's better than a sharp drill tip in the eye. I just like prudhoe bay more

“… $8.21. That's a 27% gain. It's better than a sharp drill tip in the eye. I just like prudhoe bay more …”

Mad Money

BP Prudhoe Bay Royalty Trust (BPT) Discussed on CNBC's Mad Money

BP Prudhoe Bay Royalty Trust is in the news. Find out how this impacts BPT trading on Ockham Research.

Higher as crude gets more expensive, i've got one for you, bp prude hoe bay royalty trust, that's a mouthful, but we call it bpt for you home gamers. It's an energy trust. It has to pay out norly all of its deposits to shareholders in exchange, it doesn't pay taxes. The stock had a big run today.

“… pay taxes. The stock had a big run today. …”

Mad Money

BP Prudhoe Bay Royalty Trust (BPT) Discussed on CNBC's Mad Money

BP Prudhoe Bay Royalty Trust is in the news. Find out how this impacts BPT trading on Ockham Research.

I'm thrilled what's up? >> caller: natural gas. I rode the train down with chase i'm wondering if you would stay with it or switch to something like southwestern or bpt. >> i'm sticking with bvt, I think that that one's done going I have switched eye say, listen, anadarko, if you want natural

“… listen, anadarko, if you want natural …”

View All BP Prudhoe Bay Royalty Trust Stock News

Key Fundamentals

BPT - BP Prudhoe Bay Royalty Trust Fundamentals
Price (2/9 10:21AM) $83.30
Volume (2/9 10:21AM) 47,568
Last Close Price $82.71
10 Day Average Volume 128,500
13 Week Price Range $76.58 - $90.00
52 Week Price Range $50.04 - $90.00
LTM Revenue $155.8 Million
 
Shares Outstanding (12/2008) 21.4 Million
Market Capitalization $1.8 Billion
Shares Held By Institutions 2.4 Million
Institutional Holders 119
% Shares Held By Institutions 11.20%
Earnings Per Share (EPS) $11.71
P/E Ratio 11.50
Book Value Per Share $0.15
 
Gross Margin n/a%
Annual Dividend 14.45
Dividend Yield 17.50%
Beta 0.55
Fiscal Year Ends December

About BP Prudhoe Bay Royalty Trust

BP Prudhoe Bay Royalty Trust is considered to operate in the Basic Materials sector. They specifically operate in the Oil & Gas Refining/Marketing business segment contained within the Energy industry.

The Company operates as a grantor trust in the United States.