Penn West Energy Trust

PENN WEST PETROLEUM LTD. $24.65 (Toronto symbol PWT; Shares outstanding: 447.6 million; Market cap: $11.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.4%) is one of North America’s largest oil and gas producers. The company produces an average of 166,135 barrels of oil equivalent per day (weighted 63% to oil and 37% to natural gas).

In the three months ended March …read more »

PENN WEST ENERGY TRUST $14.88 (Toronto symbol PWT.UN; Units outstanding: 414.2 million; Market cap: $6.2 billion; SI Rating: Speculative) is the largest oil and gas trust in North America.

In the first three months of 2009, lower oil and gas prices pushed down Penn West’s revenue by 47.7%, to $625 million from $1.2 billion. Cash flow per unit fell 50.6%, to …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 »

PENN WEST ENERGY TRUST $16.04 (Toronto symbol PWT.UN; Shares outstanding: 384.4 million; Market cap: $6.2 billion; SI Rating: Speculative) is the largest conventional oil and gas trust in North America.

In the three months ended September 30, 2008, Penn West’s revenue rose 113.6%, to $1.2 billion from $628 million, largely due to acquisitions. Cash flow per unit rose 20.1%, to $1.73 …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 »

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 »

ENDEV ENERGY INC. $1.41 (Toronto symbol ENE; SI Rating: Speculative) (1-888- 739-4623; www.endevenergy.com; Shares outstanding: 88.7 million; Market cap: $125.0 million) jumped recently after receiving a buyout offer from Penn West Energy Trust, $35, symbol PWT.UN on Toronto.

Endev shareholders will receive 0.041 of a Penn West unit for each Endev share held, which is equivalent to $1.44 per Endev share …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 »

PENN WEST ENERGY TRUST $30.12 (Toronto symbol PWT.UN; SI Rating: Speculative) has agreed to acquire TSX-listed Canetic Resources Trust for $3.8 billion in Penn West units.

The acquisition will make Penn West the largest conventional oil and gas trust in North America, with average daily production of over 200,000 barrels of oil equivalent (weighted 42% to natural gas and 58% to …read more »

PENN WEST ENERGY TRUST $33.70 (Toronto symbol PWT.UN; SI Rating: Speculative) is one of the largest conventional oil and gas trusts in North America. It operates in Saskatchewan, Alberta and British Columbia.

In the three months ended December 31, 2006, Penn West’s revenues rose 4.3%, to $578.5 million from $554.5 million. Cash flow per unit fell 39.4%, to $1.23 from $2.03.

Penn …read more »