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Canadian Energy & Income Trusts ((Merged thread))

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Interesting. Can you tell us where you read this please?

 

 

I can't remember where I saw it, but it has to do with PWE and probably others building up a tax pool, so that they will be unaffected for several years after 2011. Of course its not certain that the tax laws will ever be implemented, the sp's have already discounted this as a certainty, so an added attraction of these trusts is the spice of a repeal. :lol:

 

Even if the law goes ahead, I think many of these trusts are looking at MLP status, altho I'm no expert on this subject by any means. Sorry to be so vague, perhaps someone else can help?

 

Trusts eye greener pastures, CEO says http://www.theglobeandmail.com/servlet/s...

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For reasons unbeknownst to me, Penn West is up nearly 5% today. Maybe it's found a bottom after it's been beaten down and down and then some more over the last few months?

 

Have been keeping an eye on Penn West for a while, looking for a good point to buy for the long term. It’s sub-$27 at the moment which looks good, but with a p/e of over 38 I’m still hesitant.

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Have been keeping an eye on Penn West for a while, looking for a good point to buy for the long term. It’s sub-$27 at the moment which looks good, but with a p/e of over 38 I’m still hesitant.

PennWest is my largest single stock holding. Buy it and forget it.

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This happens to be my largest holding as well. Do any of you guys hold any other trusts. I`m also a holder of Peyto and Daylight resources which are more orientated towards Nat Gas than Oiland NGLs. I think Penn West is 50-50 whereas Daylight has 55-45 in favour of Natgas and Peyto is nearly 100% Natgas.

 

What i like about daylight are the payout ratio of only around 67%(Recently reduced the divi) but also reported a solid set of results(operating costs in the industry also appear to be coming down) last time out and with the yield still at 16% .

 

Peyto has very low operating costs(industry leader) and proven long life/high quality reserves of 14years(probably more likely 20years ) Also taking advantage of falling industry costs. The yield is only 10% but takes into account the quality of its reserves. I expect this will get taken out in the not too distant future. They have never decreased the divi and increased it 4 times.

 

So if you want to play the Natgas story there may be other companies to look at.

 

Interestingly Penn West shot up at the end of day on huge volume. It will be interesting to see whether there is any carry through from that today.

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Penn West is my largest holding also, I bought at $36 (owch!) luckily I bought gold ETF's and shares heavily after the Fed's first 50 basis point cut which has covered my loses, I also hold enervest and arc energy as well

 

(I haven’t been posting much recently as I’ve moved up north for a contract to move some servers over from America for a bank and i'm kipping at a mates house)

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Very good news possibly in the making for income trusts. If you read Iain Frasers comment near the bottom. I`m already very overweight these Gassy trusts but i`m tempted to add more.(especially daylight and Peyto).

 

"We think there is still much hope for the battered energy trusts. On Oct. 25/05 Prime Minister Harper said:" The government continues to overtax Canadians and run multi billion dollar surpluses, yet their first instinct is to attack an investment vehicle that can make the difference between bare survival and a dignified retirement for millions of Canadians." Well chosen words. We bring this subject up because last week a Conservative Party worker phoned to solicit my support; my reply was that Mr. Harper's change of mind had cost millions of us billions of dollars; how could we vote for him? The party member's reply was that just about everybody was saying the same thing. Mr. Harper almost has to change Flaherty's proposals. Also, the Liberals and the Bloc are soon to have a meeting on this issue. The position is that these two have 152 seats. If they can get three more, they win. We think it will be easy to get three more. We may be close to the low on the income trust index."

 

http://dvtechtalk.com/January/January17.htm

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I have a fairly chunky amount invested in Enervest. Have purchased in 3 stages over the last 15 months, at a good avg price not too far above where it's currently at. The yield is fantastic, and good scope for moderate capital appreciation in the short-med term.

 

I am tempted to put a further big chunk of my STR fund into this or some other energy trusts, because most of it is still in a GPB savings a/c and with the direction of the £ and interest rates, obviously this is not proving lucrative. (Although while house prices are going in the right direction, my cash position is working overall, and with near-zero risk - perhaps best not to get too clever).

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Think I may have found a beauty:

 

Precision Drilling - an income trust in the oilfield services sector.

 

PE Ratio 5.73 ; Divident yield of 13.77%

 

http://www.precisiondrilling.com/

 

Chart looks to have found a bottom after a Bubb ABC correction and is now sitting on topo of 21 and 55 dmas at a potential inflection point.

 

CHART

 

Anyone know it?

 

Still happy with Precision?

Are the dividends consistent enough?

They are investing for the future

http://www.answers.com/main/ntquery?dsid=2...0-E01D14C8EEE0}

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a uk listed it Middlefield Canadian Income Trusts

http://www.theaic.co.uk/find_compare/trust...rust.asp?id=MCT

Geographical Sector Industry Sector % of Total Assets

Canada Oil & Gas 42.0

Canada Investment Funds 29.8

Canada Property 10.6

Cash & Fixed Interest Net Current Assets 8.6

Canada Resources 8.3

Canada General Industrials 0.7

 

ARC Energy Trust 5.2

Penn West Energy Trust 4.5

Vermilion Energy Trust 4.1

Crescent Point Energy Trust 4.1

Enerplus Resources Fund 3.5

Focus Energy Trust 3.1

Canadian Oil Sands Trust 3.1

Yellow Pages Income Fund 2.7

Zargon Energy Trust 2.6

Westshore Terminals Inc T 2.6

 

http://www.advfn.com/p.php?pid=legacydaily...delay_indices=1

cant find awebsite for these

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a uk listed it Middlefield Canadian Income Trusts

http://www.theaic.co.uk/find_compare/trust...rust.asp?id=MCT

Geographical Sector Industry Sector % of Total Assets

Canada Oil & Gas 42.0

Canada Investment Funds 29.8

Canada Property 10.6

Cash & Fixed Interest Net Current Assets 8.6

Canada Resources 8.3

Canada General Industrials 0.7

 

ARC Energy Trust 5.2

Penn West Energy Trust 4.5

Vermilion Energy Trust 4.1

Crescent Point Energy Trust 4.1

Enerplus Resources Fund 3.5

Focus Energy Trust 3.1

Canadian Oil Sands Trust 3.1

Yellow Pages Income Fund 2.7

Zargon Energy Trust 2.6

Westshore Terminals Inc T 2.6

 

http://www.advfn.com/p.php?pid=legacydaily...delay_indices=1

cant find awebsite for these

 

Thanks for that. Just checked prices on Hargreaves Lansdown:

 

Middlefield Canadian Inc Trust Part Pref Shs Npv (MCT)

Sell : 72.00p | Buy : 92.00p |

 

Why is there such a massive spread? I love my small holdings of Penn West, and this IT looks interesting but not at this spread.

 

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PennWest is my largest single stock holding. Buy it and forget it.

 

 

Zapata loves this one doesn't he?

Almost $34 today. Still a screaming buy? I think perhaps - the fundamentals are so strong aren't they?

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From post #31 http://www.greenenergyinvestors.com/index....amp;#entry40838

 

XTR holdings (more info on http://www.ishares.ca/product_info/fund_ho....do?ticker=XTR). Looks good coverage and good yield.

 

CANADIAN OIL SANDS TRUST COS-U 14.88%

PENN WEST ENERGY TRUST PWT-U 7.56%

FORDING CANADIAN COAL TRUST FDG-U 5.98%

ENERPLUS RESOURCES FUND ERF-U 4.70%

ARC ENERGY TRUST-UNITS AET-U 3.86%

YELLOW PAGES INCOME FUND YLO-U 3.15%

PENGROWTH ENERGY TRUST PGFu.CN.Eq 3.07%

CRESCENT POINT ENERGY TRUST CPG-U 2.89%

RIOCAN REAL ESTATE INVST TR REI-U 2.75%

BELL ALIANT REGIONAL COMMUNI BA-U 2.28%

HARVEST ENERGY TRUST-UNITS HTE-U 2.28%

PRECISION DRILLING TRUST UNIT PD-U 2.08%

AEROPLAN INCOME FUND AERu.CN.Eq 2.06%

CI FINANCIAL INCOME FUND CIX-U 1.79%

PROVIDENT ENERGY TRUST-UTS PVE-U 1.78%

BONAVISTA ENERGY TRUST BNP-U 1.77%

VERMILION ENERGY TRUST VET-U 1.73%

BAYTEX ENERGY TRUST-UNITS BTE-U 1.63%

H&R REAL ESTATE INVSTMNT-UTS HR-U 1.62%

PEMBINA PIPELINE INC-TR UTS PIF-U 1.44%

INTER PIPELINE FUND IPL-U 1.35%

CAN REAL ESTATE INVEST TRUST REF-U 1.11%

LABRADOR IRON ORE ROYALTY TR LIFu.CN.Eq 1.09%

ADVANTAGE ENERGY INCOME FUND AVN-U 1.09%

BOARDWALK REAL ESTATE INVEST BEI-U 1.06%

PEYTO ENERGY TRUST PEYu.CN.Eq 1.04%

ALTAGAS INCOME TRUST ALA-U 1.03%

CANADA T-BILL TBCAN N/A 0.99%

ENERGY SAVINGS INCOME FUND SIF-U 0.91%

FORT CHICAGO ENERGY-CLASS A FCE-U 0.89%

NAL OIL & GAS TRUST-UTS NAEu.CN.Eq 0.87%

PROGRESS ENERGY TRUST PGX-U 0.87%

CALLOWAY REAL ESTATE INVESTM CWTu.CN.Eq 0.87%

BFI CANADA INCOME FUND BFCu.CN.Eq 0.85%

KEYERA FACILITIES INCOME FD KEY-U 0.84%

TERANET INCOME FUND TF-U 0.82%

MULLEN GROUP INCOME FUND MTL-U 0.82%

CML HEALTHCARE INCOME FUND CLC-U 0.81%

WESTSHORE TERMINALS INC FD WTEu.CN.Eq 0.70%

CAN APARTMENT PROP REAL ESTA CAR-U 0.69%

FREEHOLD ROYALTY TRUST UTS FRU-U 0.66%

SUPERIOR PLUS INCOME FUND SPFu.CN.Eq 0.65%

PRIMARIS RETAIL REAL ESTATE PMZ-U 0.64%

TIMBERWEST FOREST CRP- STP U TWFu.CN.Eq 0.60%

CHARTWELL SENIORS HOUSING RE CSH-U 0.57%

EPCOR POWER L.P. EPu.CN.Equ 0.55%

NORTH WEST COMPANY FUND NWFu.CN.Eq 0.53%

DAYLIGHT RESOURCES TRUST DAY-U 0.53%

PARAMOUNT ENERGY TRUST PMT-U 0.51%

NEWALTA INCOME FUND NAL-U 0.51%

NORTHLAND POWER INCOME TR UT NPIu.CN.Eq 0.48%

COMINAR REAL ESTATE INV-TR U CUF-U 0.47%

DAVIS + HENDERSON INCOME FND DHFu.CN.Eq 0.45%

GMP CAPITAL TRUST GMP-U 0.45%

INNVEST REAL ESTATE INVESTME INN-U 0.44%

JAZZ AIR INCOME FUND JAZu.CN.Eq 0.43%

CINEPLEX GALAXY INCOME FUND CGXu.CN.Eq 0.42%

CONSUMERS' WATERHEATER INCOM CWIu.CN.Eq 0.36%

ALGONQUIN POWER INC FUND-UTS APF-U 0.36%

EXTENDICARE REAL ESTATE INVE EXE-U 0.36%

ENERFLEX SYSTEMS INCOME FUND EFX-U 0.35%

DUNDEE REAL ESTATE INVESTMEN D-U 0.29%

 

Some big names I recognize in there, a like the sustantial exposure to energy and natural resources. The only thing I'd be slightly concerned about is the real estate holdings. I'm not familiar with the Canadian property market but suspect they may be on the same boom bust crash course as the US and UK but probably to a lesser degree. Combine this with an economic slowdown hitting commercial property and it may have a short to medium term affect on the SP. Having said that with strong energy and natural resources trusts paying big divi's I would expect the fund to be a top performer even in a poor economic climate. But who knows, Canada being rich in natural resources may escape unscathed in a global slowdown.

 

I may choose to do some research and select a number of energy and natural resources trusts I feel have the best prospects. If anyone can suggest the best websites (other then the individual stock's) where I can do this and monitor industry news etc it would be appreciated. Stockhouse is one I know of so far. There is a newsletter dedicated to analysing and monitoring the trusts called Canadian Edge http://www.kci-com.com/lp/ce/1107/retire_default.asp and IIRC it is n't very expensive, I may consider this route, any subscribers here?

 

Also would someone kindly summarise the changes that are to take place in 2011 and what are the likely affects on earnings and share prices.

 

TIA

 

 

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I have a few of these Canadian trusts and enjoy the distributions - the yields seem pretty steady and were great when I bought them. Now they are ridiculous. Of course the distributions may fall with the price of oil, but firstly I don't see that as a certainty and secondly even if some of them halved they would still be good :blink:

No vested interest of my own other than that I have a few - look at Penn West (PWT.UN) yielding over 25% ! http://tools.trustweb.ca/acb_001/tools/dis...tions/?fundid=8 at CDN$17 right now, others I have like Pembina Pipeline (PIF.UN), Precision drilling trust (PD.UN) both 15% odd. The list goes on I am sure. I have a bit of dry powder and wouldn't mind snagging a high yield on it (with I think real capital gains probability on these trusts at 52 week lows some 50% off in some cases). Any other trusts come recommended??

matt

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Ahhh... nadgers. I had a small position in Harvest Energy Trust (HTE.UN), a CanRoy that paid out a nice 15% yield in distribution. It got *clobbered* when the oil price dropped down from ~$150 to its recent low-point (around $35 I think); from its unit price high point of around $30-odd, it dropped to as low as $4. Ouch, but c'est la vie.

 

Anyway, this one has rallied recently to just a snip under $10. Looks like a take-over from Korea's KNOC, looking to secure oil supplies over the next decade. Offering $10/unit, which would crystallise a small loss for me.

 

I'm wondering if this portends things to come; small to mid-sized oil producers could face a tide of takeovers as international supplies are secured. Might mean there's a fast buck to be made spotting undervalued battered oilies.

 

http://www.google.com/hostednews/canadianp...WSafi1jooQ-vP4w

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Yields look good. BUT global cap and trade is likely coming and the process of super heating the tar sands to produce the oil aint a good one for the old enviroment. Even talking of building Nuclear power stations to do the job!

 

You Pay your money and takes your choice !

 

Ps I hold Penn West also.

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