Post-conversion yields should hold steady

Article Excerpt

PENGROWTH ENERGY TRUST $12.42 (Toronto symbol PGF.UN; Units outstanding: 320.1 million; Market cap: $4.0 billion; SI Rating: Average; Dividend yield: 6.8%; produces oil and natural gas in western Canada and off the Nova Scotia coast. Its production is weighted 51% to oil and 49% to gas. In the three months ended June 30, 2010, revenue rose to $337 million from $335.6 million a year earlier. Cash flow per unit was unchanged at $0.56. Higher oil and gas prices offset a drop in production. Poor weather hurt Pengrowth’s production and drilling levels. The trust will convert to a dividend-paying corporation on December 31, 2010. The change is in response to Ottawa’s new tax on income-trust distributions, which comes into effect on January 1, 2011. After the conversion, the company will be called Pengrowth Corporation. Pengrowth will maintain its monthly payout of $0.07 a share following the conversion. The annual rate of $0.84 would yield 6.8%, based on today’s price. As…

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.