PENGROWTH ENERGY TRUST $19.42 (Toronto symbol PGF.B; SI Rating: Average) produces oil and gas in western Canada, as well as offshore Nova Scotia.
In the three months ended September 30, 2006, Pengrowth’s revenue fell 5.5%, to $287.8 million from $304.5 million. However, cash flow per unit rose 8%, to $1.08 from $1.00.
Pengrowth’s average daily production of 58,344 barrels of oil equivalent is weighted 44% toward oil and liquids, and 56% to natural gas. In the latest quarter, the company’s average realized price for oil was $72.61 U.S. and $6.29 U.S. for natural gas.
Pengrowth’s long-term debt is low at 24% of shareholders’ equity. The trust has an annual yield of 15.5%. It distributed 92% of its cash flow as distributions in the latest quarter.
Pengrowth is now acquiring Canadian oil and gas properties from ConocoPhillips for $1.04 billion. The purchase will boost Pengrowth’s production by 27%.
Pengrowth is still a buy.