Two Trust Buys for Income & Growth

Article Excerpt

PRIMEWEST ENERGY TRUST $21.93 (Toronto symbol PWI.UN; SI Rating: Speculative) is a Calgary-based oil and gas royalty trust with operations in both western Canada and Montana, North Dakota and Wyoming in the U.S. PrimeWest’s revenues rose 28.2% in the three months ended June 30, 2007, to $173.1 million from $135 million a year earlier. Cash flow per unit rose 8.4%, to $1.15 from $1.06. PrimeWest’s long-term debt is 43% of shareholders’ equity. PrimeWest’s average daily production of 40,266 barrels of oil equivalent in the quarter was weighted 32% toward oil and liquids and 68% natural gas. In July, 2007, PrimeWest acquired Shiningbank Energy Income Fund, a recommendation of Canadian Wealth Advisor. The combined trust now has average daily production of around 59,000 barrels of oil equivalent, weighted 70% to natural gas and 30% to crude oil and natural gas liquids. PrimeWest pays a monthly distribution of $0.25 per unit, for a current yield of 13.7%. As a result of the purchase of Shiningbank, PrimeWest…

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