Argent Energy Trust was the third cross border trust to IPO back in August of 2012. I initially wrote about AET back in October when the trust was drilling its first two Eagle Ford wells. At the time, the production profile pointed to ~4,000 boed in 2013. However, following new acquisitions since then,
Continue reading Argent Energy Trust: Third Time’s a Charm?
In 2012, Parallel hit investors with one big headache after another. A host of challenges faced during the year took a heavy toll on the share price which fell below $4 down from a $9 yearly high. Now that the long anticipated dividend cut is in, where does Parallel go from here? Let’s
Continue reading Parallel Energy Trust 2013 Outlook
Since the production miss reported early in November, Eagle Energy Trust has seen its share price drop from over $10 to a new record low of $6.77 per share. First it was the production miss, then tax loss selling kicked in followed up by unkind comments from TV pundits. That accelerated the route in the stock over
Continue reading Eagle Energy Trust 2013 Outlook
Eagle Energy Trust’s last Q3 report was below expectations due to operational hiccups. The company reduced its guidance for the second half of 2012 which triggered a drop in the stock price. It’s time to check on the dividend sustainability based on the anticipated lower production volumes in 2013.
Q3 production came in at 2,825
Continue reading Eagle Energy Trust: Q3/12 Results Disappoint
Argent Energy Trust is the third company to join the select cross border club of Canadian high yield income trusts. Argent operates oil and gas properties in South Texas and Oklahoma targeting the Eagle Ford, Austin Chalk and Wilcox formations. Just like Eagle Energy Trust, Argent pays a generous distribution of $0.0875 per
Continue reading Argent Energy Trust: Eagle Ford Shale Upside Beacons
Parallel Energy Trust currently yields ~20% based on a $4.75 per share and a $0.96 annual distribution per share. The market is clearly pricing in a dividend cut. Just pick a reason: high debt to cash flow, an unsustainable dividend funded by recycling investor’s money (DRIP) and the continued weakness in realized liquids pricing. However,
Continue reading Parallel Energy Trust: Distribution Cut Being Priced In
In its last Q2 report, Eagle Energy is guiding for a sustainability ratio of 150% for 2012 due to increased spending this year. The company increased its capital program to $42 million up from $32 million on the back of higher costs at the Salt Flat field and for drilling 2 extra wells on its
Continue reading Eagle Energy Trust: Growing Pains Distort Sustainability Ratio
Last time I discussed Parallel Energy Trust, WTI oil was above $100 per barrel and the company was realizing a decent percentage of WTI for its condensate and NGL production. However, following its last Q2 report, the company is making a lot less money on its liquids production which combined with operational issues are undermining
Continue reading Paralell Energy Trust: Distribution Sustainability in Danger
It was only a matter of time before Eagle Energy Trust announced a new acquisition. The CEO has been hunting for a new asset for the past months which finally ended with the US$113 million dollar acquisition announcement in the Permian Basin, Texas. The new asset base diversifies Eagle’s portfolio but it also ensures the
Continue reading Eagle Energy Trust: Permian Basin Asset Ensures Sustainability
Last week, Parallel Energy Trust announced the acquisition of the remaining 41% interest in the West Panhandle Field increasing the monthly dividend from $0.075 to $0.08 per share. However, before you get carried away with the extra money you will be pocketing every month, let’s take a quick look at the sustainability of this distribution.
Continue reading Parallel Energy Trust: Post Acquisition Dividend Sustainability Analysis