Canadian Oil Sands Trust: Potential Distribution Double

Buy-recommended Canadian Oil Sands Trust (COSWF) offers unlevered appreciation
potential of 20% to estimated net present value [NPV] of $39 a share revised up from $35 on May 29, when we raised long-term oil price to $66 a barrel from $60. Second quarter results reported on July 24 point to free cash flow above C$0.80 a quarter for the next four quarters tied to full capacity operation and recent oil futures prices.

As a result we increase our projected distribution to C$0.80 a quarter, beginning with the declaration in October to be paid next January, double the current quarterly rate. Concentrated entirely on oil and committed to distributing free cash flow, COSWF is our purest, direct participation in the rising value of refined liquid energy.

Indicating further potential, the trend in long-term oil price appears to be up despite volatility of short-term quotes. Finally, COSWF stock price also has positive momentum as it trades above its 200-day average.

Originally published on July 25, 2007.