Oil Dive Slams Canadian Energy Trusts
Companies:Baytex Energy TrustEnterra Energy TrustEnterprise Products Partners LP Topics:Investing Ideas & Strategies Related Quotes
Symbol Price Change
BTE 29.07 +0.61
ENT 1.99 -0.08
EPD 32.44 +0.48
ERF 20.96 +0.30
KMP 62.52 +0.77
On Tuesday May 25, 2010, 12:34 pm EDT
Global economic fears drove the Dow down more than -200 points in early trading on Tuesday, and oil slid well below the $70 mark. Canadian energy trusts were hit particularly hard as investors fled from the commodity-tied equity segment. As a whole, the Canadian Energy Trusts Index is off by -4% today led lower by Enterra Energy Trust (NYSE: ENT - News), which was down by as much as -10% earlier in the session.
Investors often buy into energy trusts because of their high yields, but new tax legislation effective 2011 is forcing these firms to convert from income-oriented trusts to growth-oriented corporations and potentially eliminating their ability to continue dishing out hefty dividend payments. As of this writing, the Canadian Energy Trusts Index remains one of the top-ten yielding tickerspy Indexes, but its days may be numbered as firms restructure and join other segments of the oil and natural gas market.
Enerplus Resources Fund (NYSE: ERF - News) and Penn West Energy Trust (NYSE: PWE - News) were the Pro-favorites in the sector at the end of Q1 with nine and eight 13F-filing asset managers counting shares of the respective trusts in their top-15 U.S.-listed equity positions. Meanwhile, Baytex Energy Trust (NYSE: BTE - News), Provident Energy Trust (NYSE: PVX - News), and Enterra all maintained at least one Pro holder by the same criteria.
Canadian energy trusts have a loyal following of income-oriented investors, but upon corporate conversions, there will still be plenty of places to earn consistent distributions in the energy segment. The Royalty Trusts Index and MLPs Index both currently sport average yields upwards of 7.5%. Pro favorites in these sectors include Kinder Morgan Energy Partners (NYSE: KMP - News), Enterprise Products Partners (NYSE: EPD - News), and San Juan Basin Royalty Trust (NYSE: SJT - News), to name a few.
Investors can track the Canadian Energy Trusts Index and many more high-yield equity Indexes for performance trends and a suite of other metrics at tickerspy.com.
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Related Headlines
T. Boone Pickens Expects Approval Of The Natural Gas Act By Memorial Day; See What Senior Industry Analyst Has To Say - Wall Street Transcript
Oil Dive Slams Canadian Energy Trusts - Indie Research
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Petrohawk Energy completes $1.2B in asset sales - AP
SAN JUAN BASIN ROYALTY TRUST Financials - EDGAR Online Financials
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