Updating True Energy Trust and Swift Transportation

Article Excerpt

TRUE ENERGY TRUST $5.73 (Toronto symbol TUI.UN; SI Rating: Speculative) (403-264-8875; www.tketrust.com; Units outstanding: 70.3 million; Market cap: $402.7 million) produces oil and gas in West Central Alberta and West Central Saskatchewan. About 60% of its production is natural gas. True Energy has announced plans to convert from an income trust back into an exploration and development company. The company now pays a distribution of $0.12 per month. That will fall to a dividend of $0.02 a month. True Energy had cash flow of $0.50 a share in the three months ended September 30, 2006. So it now trades at a low 2.9 times cash flow. Total oil and gas production was up 52.3% in the quarter. True Energy has a large inventory of 600 drilling prospects and a significant undeveloped land base. The new structure and lower payout will give it the cash flow to exploit those assets. True Energy is still a buy for aggressive investors. SWIFT TRANSPORTATION CO. $30.81 (Nasdaq symbol…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.