Oil Heavy Trusts Could Fill Your Wallet

The Cash is pouring into the Oil and Gas Canroys right now, and it will continue to do so at oil over $100 a barrel and gas over $10 a MCF.  All this cash must be redistributed if not reinvested.  Two weeks ago (May 21), PennWest announced it was acquiring a small oil company for $125M.  This will add 3500 barrels a day of production to PWE.  However, $125M is only one month of cash flow at PWE, so this does not really put any pressure on cash.  There is still plenty of excess to distribute with increasing dividends.

 

Isn’t the best way to beat the high prices at the gas pump investments in Canroys?  This has been my mantra for the past 3-4 years.  To underscore this idea, there was an article in the Canadian Globe and Mail that I read while in Calgary last week.  It was called: “Oil Heavy Trusts Could Fill Your Wallet”  https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20080530/RPARKINSON30   It references several recommended oil trusts and has Baytex and Daylight on its recommended list.  It does not list the gas trusts, though they are about 50/50 oil and gas.  They will also be increasing their dividends soon.