SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
---------------
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
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Commission file number 1-10243
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BP PRUDHOE BAY ROYALTY TRUST
------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 13-6943724
- ---------------------------------- ------------------
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
The Bank of New York, 101 Barclay Street, New York, NY 10286
----------------------------------------------------------------
(Address of Principal Executive Office of Trustee) (Zip Code)
Trustee's Telephone Number, Including Area Code: (212) 815-5092
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Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]
As of May 14, 1999, 21,400,000 Units of Beneficial Interest were
outstanding.
<PAGE>
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
BP PRUDHOE BAY ROYALTY TRUST
Statements of Assets, Liabilities and Trust Corpus
(In thousands, except unit data)
<TABLE>
<CAPTION>
March 31,
1999 December 31,
(Unaudited) 1998
---------- -----------
<S> <C> <C>
Assets
Royalty Interest, net (notes 1 and 2) $24,479 25,098
Cash 13 13
------- ------
Total assets $24,492 25,111
======= ======
Liabilities and Trust Corpus
Accrued expenses $ 753 103
Trust Corpus (40,000,000 units of beneficial
interest authorized, 21,400,000 units issued
and outstanding) 23,739 25,008
------- ------
Total liabilities and Trust Corpus $24,492 25,111
======= ======
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
BP PRUDHOE BAY ROYALTY TRUST
Statements of Cash Earnings and Distributions
(In thousands, except unit data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
-----------------------------
1999 1998
----------- ----------
<S> <C> <C>
Royalty revenues $ 0 8,773
Interest Income 0 5
Refund of overpayment of expenses 0 142
Less: Trust administrative expenses 0 (103)
----------- ----------
Cash earnings $ 0 8,817
=========== ==========
Cash distributions $ 0 8,817
=========== ==========
Cash distributions per unit $ 0 0.412
=========== ==========
Units outstanding 21,400,000 21,400,000
=========== ==========
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
BP PRUDHOE BAY ROYALTY TRUST
Statements of Changes in Trust Corpus
(In thousands)
(Unaudited)
Three months ended
March 31,
--------------------------
1999 1998
------- -------
Trust Corpus at beginning of period $25,008 242,829
Cash earnings 0 8,817
Increase in accrued expenses (650) (28)
Cash distributions 0 (8,817)
Amortization of Royalty Interest (619) (10,950)
------- --------
Trust Corpus at end of period $23,739 231,851
======= =======
See accompanying notes to financial statements.
3
<PAGE>
BP PRUDHOE BAY ROYALTY TRUST
Notes to Financial Statements
March 31, 1999
(Unaudited)
(1) Formation of the Trust and Organization
BP Prudhoe Bay Royalty Trust (the "Trust"), a grantor trust, was
created as a Delaware business trust pursuant to a Trust Agreement dated
February 28, 1989 among The Standard Oil Company ("Standard Oil"), BP
Exploration (Alaska) Inc. (the "Company"), The Bank of New York (The
"Trustee") and The Bank of New York (Delaware), as co-trustee. Standard
Oil and the Company are indirect wholly owned subsidiaries of the British
Petroleum Company p.l.c. ("BP").
During the fourth quarter of 1998, British Petroleum Company p.l.c.
merged with Amoco Corporation to form BP Amoco. This transaction should
not have a material effect on the Trust's operations.
On February 28, 1989, Standard Oil conveyed an overriding royalty
interest (the "Royalty Interest") to the Trust. The Trust was formed for
the sole purpose of owning and administering the Royalty Interest. The
Royalty Interest represents the right to receive, effective February 28,
1989, a per barrel royalty (the "Per Barrel Royalty") on 16.4246% of the
lesser of (a) the first 90,000 barrels of the average actual daily net
production of oil and condensate per quarter or (b) the average actual
daily net production of oil and condensate per quarter from the Company's
working interest in the Prudhoe Bay Field (the "Field") as of February
28, 1989, located on the North Slope of Alaska. Trust Unit holders will
remain subject at all times to the risk that production will be
interrupted or discontinued or fall, on average, below 90,000 barrels per
day in any quarter. BP has guaranteed the performance by the Company of
its payment obligations with respect to the Royalty Interest.
The trustees of the Trust are The Bank of New York, a New York
corporation authorized to do a banking business, and The Bank of New York
(Delaware), a Delaware banking corporation. The Bank of New York
(Delaware) serves as co-trustee in order to satisfy certain requirements
of the Delaware Trust Act. The Bank of New York alone is able to exercise
the rights and powers granted to the Trustee in the Trust Agreement.
The Per Barrel Royalty in effect for any day is equal to the price of
West Texas Intermediate crude oil (the "WTI Price") for that day less
scheduled Chargeable Costs (adjusted in certain situations for inflation)
and Production Taxes (based on statutory rates then in existence). For
years subsequent to 2001, Chargeable Costs will be reduced up to a
maximum amount of $1.20 per barrel in each year if additions to the
Field's proved reserves do not meet certain specific levels.
The Trust is passive, with the Trustee having only such powers as are
necessary for the collection and distribution of revenues, the payment of
Trust liabilities and the protection of the Royalty Interest. The
Trustee, subject to certain conditions, is obligated to establish cash
reserves and borrow funds to pay liabilities of the Trust when they
become due. The Trustee may sell Trust properties only (a) as authorized
by a vote of the Trust Unit holders, (b) when necessary to provide for
the payment of specific liabilities of the Trust then due (subject to
certain conditions) or (c) upon termination of the Trust. Each Trust Unit
issued and outstanding represents an equal undivided share of beneficial
interest in the Trust. Royalty payments are received by the Trust and
distributed to Trust Unit holders, net of Trust expenses, in the month
succeeding the end of each calendar quarter. The Trust will terminate
upon the first to occur of the following events:
(a) On or prior to December 31, 2010: upon a vote of Trust Unit holders
of not less than 70% of the outstanding Trust Units.
4
<PAGE>
BP PRUDHOE BAY ROYALTY TRUST
Notes to Financial Statements (Continued)
(1), Continued
(b) After December 31, 2010: (i) upon a vote of Trust Unit holders of
not less than 60% of the outstanding Trust Units, or (ii) at such
time the net revenues from the Royalty Interest for two successive
years commencing after 2010 are less than $1,000,000 per year
(unless the net revenues during such period are materially and
adversely affected by certain events).
The Trust has no source of liquidity and no capital resources other
than the revenue attributable to the Royalty Interest that it receives
from time to time. As a result of the severe drop in world oil prices
during 1998 and early 1999, the quarterly royalty revenues and cash
distributions of the Trust have been significantly reduced. The royalty
revenue for the fourth quarter of 1998 that was to be received and
recorded in the first quarter of 1999 was zero. The royalty revenue for
the first quarter of 1999 that was to be received and recorded in the
second quarter of 1999 will also be zero. As a result, the Trust lacks
the liquidity to pay its accrued and future liabilities and expenses
which raises substantial doubt about the Trust's ability to continue as a
going concern. The Trust is considering establishing a reserve account
sufficient to pay approximately one year's current and expected
liabilities and expenses of the Trust should a distribution be made to
the Trust in future quarters.
(2) Basis of Accounting
The financial statements of the Trust are prepared on a modified cash
basis and reflect the Trust's assets, liabilities, Corpus, earnings and
distributions as follows:
(a) Revenues are recorded when received (generally within 15 days of
the end of the preceding quarter) and distributions to Trust Unit
holders are recorded when paid.
(b) Trust expenses (which include accounting, engineering, legal, and
other professional fees, trustees' fees and out-of-pocket
expenses) are recorded on an accrual basis.
(c) Amortization of the Royalty Interest is calculated using the units of
production method. Such amortization is charged directly to the Trust
Corpus, and does not affect cash earnings. The daily rate for
amortization per net equivalent barrel of oil was $0.47 and $8.23 for
the three months ended March 31, 1999 and 1998, respectively. The
Trust evaluates impairment of the Royalty Interest by comparing the
undiscounted cash flows expected to be realized from the Royalty
Interest to the carrying value, pursuant to Statement of Financial
Accounting Standards No. 121 ("SFAS 121") "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of". If the expected future undiscounted cash flows are less
than the carrying value, the Trust recognizes an impairment loss for
the difference between the carrying value and the estimated fair
value of the Royalty Interest.
While these statements differ from financial statements prepared in
accordance with generally accepted accounting principles, the cash basis
of reporting revenues and distributions is considered to be the most
meaningful because quarterly distributions to the Unit holders are based
on net cash receipts. The accompanying modified cash basis financial
statements contain all adjustments necessary to present fairly the
assets, liabilities and Trust corpus of the Trust as of March 31, 1999
and December 31, 1998 and the modified cash earnings and distributions
and changes in Trust Corpus for the three months ended March 31, 1999 and
1998. The adjustments are of a normal recurring nature and are, in the
opinion of management, necessary to fairly present the results of
operations.
5
<PAGE>
BP PRUDHOE BAY ROYALTY TRUST
Notes to Financial Statements (Continued)
(2), Continued
Estimates and assumptions are required to be made regarding assets,
liabilities and changes in Trust Corpus resulting from operations when
financial statements are prepared. Changes in the economic environment,
financial markets and any other parameters used in determining these
estimates could cause actual results to differ.
The financial statements should be read in conjunction with the
financial statements and related notes in the Trust's 1998 Annual Report
on Form 10-K. The cash earnings and distributions for the interim period
presented are not necessarily indicative of the results to be expected
for the full year.
(3) Income Taxes
The Trust files its federal tax return as a grantor trust subject to
the provisions of subpart E of Part I of Subchapter J of the Internal
Revenue Code of 1986, as amended, rather than as an association taxable
as a corporation. The Unit holders are treated as the owners of Trust
income and Corpus, and the entire taxable income of the Trust will be
reported by the Unit holders on their respective tax returns.
If the Trust were determined to be an association taxable as a
corporation, it would be treated as an entity taxable as a corporation on
the taxable income from the Royalty Interest, the Trust Unit holders
would be treated as shareholders, and distributions to Trust Unit holders
would not be deductible in computing the Trust's tax liability as an
association.
6
<PAGE>
Item 2. Trustee's Discussion and Analysis of Financial Condition and
Results of Operations.
CAUTIONARY STATEMENT
The Trustee, its officers or its agents on behalf of the Trustee may, from
time to time, make forward looking statements. To the extent that any forward
looking statements are made, the Trustee is unable to predict future changes in
oil prices, oil production levels, economic activity, legislation and
regulation, and certain changes in expenses of the Trust. In addition, the
Trust's future results of operations and other forward looking statements
contained in this item and elsewhere in this report involve a number of risks
and uncertainties. As a result of variations in such factors, actual results may
differ materially from any forward looking statements. Some of these factors are
described below. The Trustee disclaims any obligation to update forward looking
statements.
LIQUIDITY AND CAPITAL RESOURCES
The Trust is a passive entity, and the Trustee's activities are limited to
collecting and distributing the revenues from the Royalty Interest and paying
liabilities and expenses of the Trust. Generally, the Trust has no source of
liquidity and no capital resources other than the revenue attributable to the
Royalty Interest that it receives from time to time. See the discussion under
"THE ROYALTY INTEREST" for a description of the calculation of the Per Barrel
Royalty, and the discussion under "THE PRUDHOE BAY UNIT - Reserve Estimates" and
"INDEPENDENT OIL AND GAS CONSULTANTS' REPORT" in Part I, Item 1 of the Trust's
Annual Report on Form 10-K for the fiscal year ended December 31, 1998 (the
"Annual Report") for information concerning the estimated future net revenues of
the Trust. However, the Trustee does have a limited power to borrow, establish a
cash reserve, or dispose of all or part of the Trust Estate, under limited
circumstances pursuant to the terms of the Trust Agreement. See the discussion
under "THE TRUST" in Part I, Item 1 of the Annual Report.
The decline in WTI Prices during the fourth quarter of 1998 resulted in the
Trust not receiving a quarterly distribution for such quarter. The Trust also
will not receive a quarterly distribution for the first quarter of 1999. The
Trustee is, therefore, currently considering exercising certain of its limited
powers under the Trust Agreement to obtain liquidity in order to meet the
Trust's accrued and future liabilities and expenses.
7
<PAGE>
As of the date of this report, the Trustee has determined not to enter into
a credit facility in order to pay recurring and non-recurring Trust expenses.
Rather, due to the recent increase in the WTI Price, the Trustee is currently
considering the establishment of a cash reserve in order to provide some level
of the liquidity to the Trust during those periods in which the Trust does not
receive a distribution. Given that the Trust has not received a cash
distribution for the fourth quarter of 1998 and will not receive one for the
first quarter of 1999, the Trustee has determined that future political and
economic conditions affecting world oil prices may make it impractical from time
to time in the future to pay liabilities of the Trust out of quarterly royalty
distributions. Accordingly, the Trustee has tentatively determined to establish
a cash reserve. The Trustee anticipates setting aside and adding to such cash
reserve, out of any quarterly distributions received by the Trust, an amount
equal to approximately one year's expected liabilities and expenses of the
Trust, which the Trustee estimates to be approximately $1,000,000. Such amount
would be set aside over the course of at least four quarters, with up to one
quarter of such amount being set aside each quarter, assuming the availability
of funds from quarterly distributions. The Trustee would draw funds from the
reserve during any quarter in which the quarterly distribution received by the
Trust did not exceed the liabilities and expenses of the Trust, and would
replenish the reserve from future quarterly distributions, if any.
In order to establish a cash reserve, certain conditions imposed by the
Trust Agreement must be met. See "THE TRUST - Duties and Limited Powers of the
Trustee" in Part I, Item 1 of the Annual Report. These conditions include the
requirement that the Trustee make certain determinations with respect to the
effect on the Trust Estate of the failure to take such action, and the receipt
by the Trustee of certain opinions of counsel. While the Trustee anticipates
that the requisite conditions imposed by the Trust Agreement can be satisfied,
no assurances can be given that the establishment of a cash reserve to pay
future expenses will be feasible.
Amounts set aside for a cash reserve must be invested in U.S. government or
agency securities secured by the full faith and credit of the United States, or
certain repurchase agreements with respect to such U.S. government or agency
securities.
As discussed under CERTAIN TAX CONSIDERATIONS of the Annual Report, amounts
received by the Trust as quarterly distributions are income to the holders of
the Units, (as will be any earning on investment of the cash reserve) and must
8
<PAGE>
be reported by the holders of the Units, even if such amounts are used to repay
borrowings or establish a cash reserve and are not received by the holders of
the Units.
Results of Operations
Royalty revenues are generally received on the Quarterly Record Date
(generally the fifteenth day of the month) following the end of the calendar
quarter in which the related Royalty Production occurred. The Trustee, to the
extent possible, pays all expenses of the Trust for each quarter on the
Quarterly Record Date on which the revenues for the quarter are received. For
the statement of cash earnings and distributions, revenues and Trust expenses
are recorded on a cash basis and, as a result, royalties paid to the Trust and
distributions to Unit holders in the quarters ended March 31, 1999 and 1998 are
attributable to the Company's operations during the three-month periods ended
December 31, 1998 and 1997, respectively.
The following table shows the factors employed to compute the Per Barrel
Royalty received by the Trust during the quarters ended March 31, 1999 and 1998
(see Note 1 of Notes to Financial Statements in Part I, Item 1):
Quarter Ended
December 31,
--------------------
1998 1997
---- ----
Average WTI Price $12.80 $19.94
------ -------
Chargeable Costs $ 9.30 $ 8.85
Cost Adjustment Factor 1.2797 1.2797
------ -------
Adjusted Chargeable Costs 11.90 11.33
Production Taxes 1.09 2.16
------ -------
12.99 13.49
------ -------
Per Barrel Royalty $(0.19)* $ 6.45
====== =======
- -------------
* Pursuant to the Conveyance, the payment under the Royalty Interest for
any calendar quarter shall not be less than zero. Accordingly, the Per
Barrel royalty for the fourth quarter of 1998 is effectively zero.
9
<PAGE>
As long as the Company's average daily net production from the Prudhoe Bay
Unit exceeds 90,000 barrels, which the Company currently projects will continue
until the year 2009, the only factors affecting the Trust's revenues and
distributions to Unit holders are changes in WTI Prices, scheduled annual
increases in Chargeable Costs, changes in the Consumer Price Index, changes in
Production Taxes and changes in the expenses of the Trust.
As a result of the severe decline in the WTI Price during 1998 and the
first quarter of 1999 (see "INDUSTRY CONDITIONS" in Part I, Item 1 of the Annual
Report), the royalty revenues and cash distributions of the Trust declined
significantly throughout 1998. The average daily WTI Price decreased below the
level necessary for the Trust to receive a distribution for the fourth quarter
of 1998 and the first quarter of 1999. Accordingly, no distribution will be made
to holders of Units for such quarters. After giving effect to the 1999 increase
in Chargeable Costs, the Trust will not be entitled to a quarterly distribution
for any quarter in which the average daily WTI Price is less than approximately
$13.78 (the "break-even point"). From the latter part of March 1999 up to the
time of this report, however, the WTI Price has been above the break-even point.
The WTI price for May 12, 1999 was $17.58. Although industry experts generally
predict that WTI Prices should remain above the levels of the last two quarters,
no such assurance can be given.
Whether the Trust will be entitled to a quarterly distribution during 1999
will depend on WTI Prices prevailing during the remainder of the year. Even if
the average daily WTI Price each quarter were to remain above the $13.78
break-even point, there may not be distributions to holders of Units. Quarterly
distributions received by the Trust must, under the terms of the Trust
Agreement, first be applied to satisfy the outstanding fees and expenses of the
Trust as of each Quarterly Record Date. Due to the fact that none of the fees
nor expenses of the Trust incurred since September 30, 1998 have been paid, the
Trustee currently estimates that the Trust will pay at least approximately
$900,000 as of the July 1999 Quarterly Record Date to satisfy such accumulated
fees and expenses, should such amounts be available. As noted above,
contributions to a cash reserve would further reduce distributions to holders of
Units.
QUARTER ENDED MARCH 31, 1999 COMPARED TO
QUARTER ENDED MARCH 31, 1998
The Trust's royalty revenues in the quarter ended March 31, 1999 were
effectively zero ($0.00) as compared with approximately $8,773,000 in the
quarter ended March 31, 1998, principally as a result of the decrease in the
Average WTI Price for the quarter ended December 31, 1998, which was lower than
10
<PAGE>
the Average WTI Price for the quarter ended December 31, 1997 by $7.14 (a
decrease of approximately 36 percent). Total deductions from the Average WTI
Price (consisting of Adjusted Chargeable Costs and Production Taxes) decreased
by only $0.50 (approximately 3.7 percent) from the fourth quarter of 1997 to the
fourth quarter of 1998.
Cash earnings and distributions for the first quarter of 1999 were zero
($0.00) as compared with approximately $8,817,000 for the first quarter of 1998
due primarily to the decrease in the Average WTI Price for the quarter ended
December 31, 1998.
The Trust Corpus at March 31, 1999 decreased by approximately 90% from
March 31, 1998, primarily as a result of an impairment loss of approximately
$174,000,000, which was calculated as the difference between the carrying value
and the estimated fair value of the Royalty Interest. The estimated fair value
was calculated by projecting future cash flows and discounting them at a current
rate that considered the risk inherent in the cash flows.
Trust administrative expenses accrued during the quarter ended March 31,
1999 as compared to the quarter ended March 31, 1998 increased by approximately
$388,000, or 148%. The increase is due primarily to approximately $315,000 in
New York Stock Exchange, Inc. listing fees which were previously paid for by BP
Exploration (Alaska) Inc. which are being charged back to the Trust.
YEAR 2000 PROBLEM
The Trustee has established a Year 2000 compliance program consisting of,
among other things, updating major proprietary application systems and
evaluating the Year 2000 compliance efforts of vendors of major vendor-supplied
systems and certain other business partners. The Trustee believes that its Year
2000 compliance program is currently on schedule to meet the needs of its
customers and the compliance deadlines defined by its regulators. As of December
31, 1998, testing and renovation of the proprietary application systems that the
Trustee deems "mission critical" were substantially completed and these systems
are currently being used by the Trustee. In addition, all vendor supplied
software systems that the Trustee deems mission critical have been tested and,
based upon such testing, the Trustee believes that such systems will not be
adversely affected in a material way by the date change to the Year 2000.
11
<PAGE>
Due to the general uncertainty inherent in the Year 2000 problem, resulting
in part from the uncertainty of the Year 2000 readiness of suppliers, customers
and other business partners, the Trustee is unable to determine at this time
whether the consequences of Year 2000 failures will have a material impact on
the Trustee and its ability to perform its obligations under the Trust
Agreement. The Year 2000 compliance program is intended to reduce significantly
the Trustee's level of uncertainty about the Year 2000 problem and, in
particular, the Year 2000 compliance and readiness of the Trustee and its
material business partners. The Trustee believes that, with completion of its
Year 2000 compliance program as scheduled, the possibility of significant
interruption of normal operations should be reduced. However, because of the
unprecedented nature of the Year 2000 problem, there can be no certainty as to
its impact.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not applicable.
12
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
The Trust did not receive a cash distribution from the Company with respect
to the quarter ended March 31, 1999. Accordingly, no distribution was made to
holders of Units for such quarterly period. For further discussion, see
"Trustee's Discussion and Analysis of Financial Condition and Results of
Operations" above.
13
<PAGE>
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
4.1 BP Prudhoe Bay Royalty Trust Agreement dated February 28, 1989 among
The Standard Oil Company, BP Exploration (Alaska) Inc., The Bank of
New York, Trustee, and F. James Hutchinson, Co-Trustee.
4.2 Overriding Royalty Conveyance dated February 27, 1989 between
BP Exploration (Alaska) Inc. and The Standard Oil Company.
4.3 Trust Conveyance dated February 28, 1989 between The Standard Oil
Company and BP Prudhoe Bay Royalty Trust.
4.4 Support Agreement dated as of February 28, 1989 among The British
Petroleum Company p.l.c., BP Exploration (Alaska) Inc., The Standard
Oil Company and BP Prudhoe Bay Royalty Trust.
27 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended March 31,
1998.
14
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BP PRUDHOE BAY ROYALTY TRUST
BY: THE BANK OF NEW YORK,
as Trustee
By: /s/ Marie Trimboli
------------------------------
Marie Trimboli
Assistant Treasurer
Date: May 17, 1999
The registrant is a trust and has no officers or persons performing similar
functions. No additional signatures are available and none have been provided.
15
<PAGE>
INDEX TO EXHIBITS
Exhibit Exhibit
No. Description
- ------- -----------
*4.1 BP Prudhoe Bay Royalty Trust Agreement dated February 28, 1989 among
The Standard Oil Company, BP Exploration (Alaska) Inc., The Bank of
New York, Trustee, and F. James Hutchinson, Co-Trustee.
*4.2 Overriding Royalty Conveyance dated February 27, 1989 between
BP Exploration (Alaska) Inc. and The Standard Oil Company.
*4.3 Trust Conveyance dated February 28, 1989 between The Standard Oil
Company and BP Prudhoe Bay Royalty Trust.
*4.4 Support Agreement dated as of February 28, 1989 among The British
Petroleum Company p.l.c., BP Exploration (Alaska) Inc., The Standard Oil
Company and BP Prudhoe Bay Royalty Trust.
**27. Financial Data Schedule.
- --------------
* Incorporated by reference to the correspondingly numbered exhibit to
the registrant's Annual Report on Form 10-K for the fiscal year ended
December 31, 1996 (Commission File No. 1-10243).
** Filed herewith.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
unaudited financial statements of BP Prudhoe Bay Royalty Trust as of and for the
fiscal quarter ended March 31, 1998 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 13
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 24,479
<DEPRECIATION> 0
<TOTAL-ASSETS> 24,492
<CURRENT-LIABILITIES> 753
<BONDS> 0
0
0
<COMMON> 23,739
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 24,492
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
