blanco-dee

Penn West Energy: Too Good to Be True?

One thing to remember about this company is their interests in coal sands, which last year seemed great, now there are "environmental" concerns involving water use, footprint, CO2 release, and now this position of future development is in question.

I have been a long time investor in this trust, back from the days of NCE Petrofund, and Jim Flaherty should go down in history as the worst financial officer in the Canadian government in history, dealing a serious blow to teachers pension funds (and many other retirement and investment funds) in a single day, the Halloween surprise that saw Canadian Royalty Trusts lose over 30 billion in market capitalization in a single day.

They have enough tax credits which will aid in their transition from a trust to lord-knows-what, maybe a master limited partnership which will still benefit shareholders - though the development of oil sands may fall into question in the coming months,

good luck with your investing

BDO

Penn West Energy Trust: My $50 Price Target

Jack - what do you think of the prospect of PWE or PGH being likely buyout candidates by the major integrated? I wasn't too surprised when Conococo-Phillips bought Burlington Resources, however I was surprised at the premium they paid.

( Conococo - I type poorly, but it sounds great, I think I'll just start calling them that from now on, it has a nice "commodity bubble" sound to it)

Penn West Energy Trust: An Underappreciated Gem

I began investing in the pre-cursor of this company over 8 years ago, as it was NCE Petrofund, later becoming Petrofund, and merging a couple years ago as PrimeWest, spilling back an incredible amount of $ per share as a result of the merger. I've spent to much time in the San Juan Basin in New Mexico, where nat gas prices ran at 2-3 bucks an mcf in the late 90's, and conflict of interest issues kept me from investing in the domestic plays. It was just osmosis, all my neighbors were drillers, and I dealt with lease development issues every day. At any rate, it turned out to be a triple when I sold out at the end of 2006, and I bought back in in 2007 - but when the Canadian Finance minister, Jim Flaherty announced that Canadian Trusts would be no longer after 2010 (the announcement was on Haloween 2006), the entire Canroy sector/group lost 30 billion of market capitalization in a single day.

Alberta wants to raise provincial taxes on these Canroy E&P companies, and this is one factor which has held them back. I consider them all takeover candidates by the majors, and even if they aren't bought outright, they will probabaly find some "master limited partnership" structure to morph into another suitable investment for high yield investors.

Just the fact that there are so few comments to this article/blog is an indication of how few investors really follow these. When I consider how many mortgage payments I've made off the dividends its no wonder I just can't stay away.

Some investors just can't invest in the great domestic nat gas plays - I spend too much time promoting responsible energy development, I just can't buy Anadarko,Apache,BP,COP... - and many other in the alphabet that have done incredibly well. As soon as the masses discover these canroys they'll just grow quicker in share price.

Enjoy the ride.