Energy Trusts

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mkarpoff
Posts: 810
Joined: Fri May 30, 2014 4:27 pm

Energy Trusts

Post by mkarpoff »

I have a suggestion. I am guessing that many of us own one or more of the income stocks that you track. However, you currently do not cover Royalty Trusts such as NDRO, just to pick one at random. They too have been hammered, and offer terrific potential at current prices. I was wondering if you could check them out, if you have time and, if you think they have merit as a sub-class, perhaps one of your interns could dig further. Thanks for the consideration.
dan_s
Posts: 37313
Joined: Fri Apr 23, 2010 8:22 am

Re: Energy Trusts

Post by dan_s »

The problem is that there is only one of me. The interns are great, but somewhat limited in what I can ask them to do. Right now their plates are full as we need to update our profiles on all of the companies in our Small-Cap Growth Portfolio.

If you want to discuss some Energy Trusts here, I strongly encourage that. This Forum is for sharing ideas.
Dan Steffens
Energy Prospectus Group
grimaldi
Posts: 89
Joined: Sat Apr 20, 2013 8:27 pm

Re: Energy Trusts

Post by grimaldi »

Many investors I know were into Canadian energy trusts in a big way, but the Halloween surprise a few years ago put them (and me!) off the structure on a permanent basis. There were a few American energy trusts, MVO comes to mind, and I think there were some even less rewarding investments in the SD family of publicly traded entities. I have not owned one in at least 4 years, and can't remember people on the boards I subscribe to praising or even mentioning one. Maybe that's just me. If you have one to suggest, I'm happy to look into it.
dan_s
Posts: 37313
Joined: Fri Apr 23, 2010 8:22 am

Re: Energy Trusts

Post by dan_s »

Take a look at http://resourceroyaltyllc.com/index.html

They have private royalty partnerships that generate strong cash flow.
Bob Howard, an EPG member, is the managing partner.
You can contact him at bhoward@resourceroyaltyllc.com or by phone at 214-691-5234
Dan Steffens
Energy Prospectus Group
mkarpoff
Posts: 810
Joined: Fri May 30, 2014 4:27 pm

Re: Energy Trusts

Post by mkarpoff »

Thx for the forward to Resource Royalty. However, if I am interpreting their site correctly, they are seeking investors in non-traded royalty opportunities. I was referring to publicly traded ones.
To anyone interested, I have some money in Eagle Energy Trust (enytf). They are Canadian based, although they own rights to royalty properties here and in Canada. Unlike American trusts Canadian ones may add new properties to their portfolio. That creates a little more volatility, but also allows them to stay in business indefinitely, unlike American trusts, which have a finite shelf life.
Another member (grimaldi) referred to the Canadian shock a few years ago when the parliament disbanded trusts and forced them to convert to corporations, thereby taxing them, and reducing cash available for distribution. The net result was a crash in their stock prices. Those trusts were more like our mlps. Today's American trusts are nothing like that. They simply own the rights to a percentage of profits from particular properties, all of which (I think) are drilled by third parties.
If any members follow trusts, I'd like to hear your opinions. They are often discussed on SeekingAlpha.
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