ARC Energy Trust

ARC ENERGY TRUST $25.59 (Toronto symbol AET.UN; Units outstanding: 275.9 million; Market cap: $7.0 billion; TSINetwork Rating: Speculative; Dividend yield: 4.7%; www.arcresources.com) will convert to a dividend-paying corporation on January 17, 2011. It will then trade as ARC Resources Ltd. under the symbol “ARX”.

ARC has $2.2 billion of tax pools it can use to offset income taxes. That will let …read more »

ARC ENERGY TRUST $23.09 (Toronto symbol AET.UN; Units outstanding: 275.9 million; Market cap: $6.4 billion; SI Rating: Speculative; Dividend yield: 5.2%; www.arcresources.com) reports 22.7% higher revenue in the three months ended September 30, 2010, to $293.6 million from $239.2 million a year earlier. ARC’s cash flow per unit rose 10.7%, to $0.62 from $0.53.

Increased production and higher oil and …read more »

ARC ENERGY TRUST $20.54 (Toronto symbol AET.UN; Units outstanding: 275.0 million; Market cap: $5.6 billion; SI Rating: Speculative; Dividend yield: 5.8%) reports 17.6% higher revenue in the three months ended June 30, 2010, to $276.7 million from $235.2 million a year earlier. Cash flow per unit rose 45.5%, to $0.64 from $0.44. Increased production and higher oil and gas prices …read more »

These three royalty trusts have seen their revenue and cash flow fall because of lower oil and natural-gas prices. Nevertheless, with their reasonable debt and low payout ratios, all three are well positioned to withstand these lower prices — and to prosper when oil and gas rise again.

ARC ENERGY TRUST $17.53 (Toronto symbol AET.UN; Units outstanding: 234 million; Market cap: …read more »

ARC ENERGY TRUST $18.72 (Toronto symbol AET.UN; Shares outstanding: 215.3 million; Market cap: $4.0 billion; SI Rating: Speculative) produces oil and gas in western Canada.

In the three months ended September 30, 2008, ARC’s revenue rose 61.8%, to $485.7 million from $300.2 million. Cash flow per unit rose 36.5%, to $1.16 from $0.85. The rise in cash flow came largely from …read more »

These three trusts now trade at low multiples to cash flow based on the 12 months to September 30, 2008. However, oil and gas prices have fallen sharply since the end of the third quarter, which will cut their cash flow in the fourth quarter. This trend will likely continue into next year. Nevertheless, with their reasonable debt and low …read more »

RIOCAN REAL ESTATE INVESTMENT TRUST $20.25 (Toronto symbol REI.UN; SI Rating: Average) has increased its monthly distributions by 2.2%, from $0.1125 a unit to $0.115. The new annual rate of $1.38 yields 6.8%.

RioCan is a buy.

ARC ENERGY TRUST $22.55 (Toronto symbol AET.UN; SI Rating: Extra risk) has rescinded one of its recent monthly distribution increases in light of lower oil …read more »

ARC ENERGY TRUST $32.88 (Toronto symbol AET.UN; SI Rating: Speculative) produces oil and gas in western Canada.

In the three months ended March 31, 2008, ARC’s revenue rose 32.5%, to $407.9 million from $307.8 million. Cash flow per unit rose 18.1%, to $0.98 from $0.83. The rise in cash flow came largely from higher oil prices.

ARC’s average daily production of 66,976 …read more »

ARC ENERGY TRUST $24.39 (Toronto symbol AET.UN; SI Rating: Speculative) produces oil and gas in western Canada.

In the three months ended December 31, 2007, ARC’s revenue rose 15.6%, to $338 million from $292.5 million. Cash flow per unit rose 6.5%, to $0.82 from $0.77. The rise in cash flow came largely from higher oil prices.

ARC’s average daily production of 63,989 …read more »

ARC ENERGY TRUST $20.75 (Toronto symbol AET.UN; SI Rating: Speculative) produces oil and gas in western Canada.

In the three months ended June 30, 2007, ARC’s revenue fell slightly, to $305.6 million from $306.7 million. Cash flow per unit fell 16.7%, to $0.80 from $0.96. The decline in cash flow came largely from higher production costs.

ARC’s average daily production of 61,637 …read more »