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2 Reasons to Buy MV Oil Trust for Income

Apr. 28, 2011 9:18 AM ETMVO
Todd Johnson profile picture
Todd Johnson's Blog
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2 Reasons to Buy MV Oil Trust for Income".....A second reason to purchase MV Oil Trust is due to the 2011 removal of crude oil hedge contracts. In 2010, hedge contracts were $65.03, on average. The average price received for 2010 barrels of oil was $75.61. The hedge ceiling limited the potential upside of higher barrel prices. The upside removal of crude oil allows the income potential to expand. Not only does the company possess an increasing commodity revenue income stream, but the elimination of hedge contracts permits MVO's distribution yield to expand. The company was limited to a $65.03 barrel of oil received due to 2010 hedge contracts....."

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