Royalty trusts: Crescent Point aims to grow

Article Excerpt

CRESCENT POINT ENERGY TRUST $35 (Toronto symbol CPG.UN; SI Rating: Speculative) continues to use its strong cash flow to boost production, increase exploration and development activities and raise distributions. Crescent Point has announced an 89% increase in its 2008 exploration and development budget, to $425 million from $225 million. The trust will focus the higher spending on its light oil Bakken field in southeast Saskatchewan. The Bakken is one of the largest oil fields in Western Canada. The spending will increase Crescent Point’s 2008 production forecast by 5.1%, to an average of 36,250 barrels of oil equivalent per day from 34,500. It now expects to exit 2008 with daily output of 37,500 barrels. Crescent Point has also increased its monthly distributions by 15%, to $0.23 from $0.20. That gives the units a current yield of 7.9%. Crescent Point is still a buy among royalty trusts. trusts…