I was a big believer in BPT back from the '90s, when I got in for $6. I played in and out over the years, and made a few bucks. I left BPT a few years ago, when the valuations seemed consistently too high, but it never left my radar. Now, the price has taken a beating, and was wondering what the causes are.
I know that production issues (or at least perceived production issues) used to knock BPT down, as well as the periodic "we're about to run dry!" theories. Anyone care to share their thoughts about the recent beating? Is it related to potential tax-law changes, or actual production / price situation?
The published PV10 from the annual report significantly undervalues the Trust assets. A more realistic valuation might be the undiscounted future cash flow from the assets using current prices constant. If oil prices escalate at a rate two to three points higher than CPI, you can have a decent built in ROI.