Trilogy Energy Trust $10.75 - Toronto symbol TET.UN

TRILOGY ENERGY TRUST $10.75 (Toronto symbol TET.UN; SI Rating: Speculative) (403-290-2900; www.trilogyenergy.com; Shares outstanding: 95.4 million; Market cap: $1.0 billion) holds oil and gas properties in the Kaybob and Grand Prairie areas of central Alberta. Production is weighted 79% toward gas and 21% to oil. In the three months ended June 30, 2008, Trilogy’s cash flow per unit rose 26.8%, to $0.71 from $0.56. Production rose 3.6%, to 21,195 barrels of oil equivalent per day, from 20,467 barrels. Trilogy’s monthly distribution of $0.10 gives it a yield of 11.2%. It flows approximately 34% of its cash flow through to its unitholders. Debt is reasonable at $341.3 million, or 34% of market cap. Trilogy now trades at around 3.8 times its latest cash flow. Trilogy is still a buy for aggressive investors.

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