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The largest owner involved in the Syncrude Oil Sands Project, Canadian Oil Sands Trust (COS.UN, OTCQX:COSWF), has increased their distributions by 43% to C$0.50 quarterly per unit. Higher oil prices have benefited the company in a large way as oil has rebounded since the financial crisis (C$43 per barrel - C$79 per barrel)

The kicker, and what makes this a weird increase, is that the company is outright stating that the distribution level is probably not sustainable and part of the reason they raised it is to maximize their tax position going into conversion into a corporation for 2011. During 2010 the trust is planning to pay out more in distributions than cash from operations less capital expenditures. Go figure...

Investors in this trust quickly need to get used to changes in dividend levels as the company has historically just adjusted the payout with rising or falling crude prices.

Source: Weird Distribution Increase at Canadian Oil Sands Trust