• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 11 mins While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 25 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 4 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 5 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 2 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 3 hours Marine based energy generation
  • 7 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 2 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 3 hours How to Create a Pandemic
  • 4 hours Apple to Bypass Internet and Beam Directly to Phones
  • 10 hours Which producers will shut in first?
  • 19 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
Keith Schaefer

Keith Schaefer

Keith is the publisher of the Oil & Gas Investments Bulletin – an investment newsletter that looks at opportunities within the Canadian small cap oil…

More Info

Oil & Gas Income Trusts

The "New Class" in an old, popular investment vehicle
 
Part 1:  A Comeback in the Making?
 
The income trust game is back - just in a different form.

Canadian Finance Minister Jim Flaherty killed these high-yield, tax sheltered public companies on October 31, 2006 - not so affectionately called the "Hallowe'en Massacre" by the millions of investors who were enjoying 10%+ payouts annually.

Canadian companies had until January 1 2011 to convert back to a regular corporation or face new taxation that essentially reverted them back anyway.

But the market has found a loophole that may allow for many new trusts - especially in the energy sector:

Don't use Canadian assets.

Two new income trusts have listed on the Toronto Stock Exchange (TSX) recently. Last year, Eagle Energy Trust (EGL.UN) went public on the TSX, which was the first Canadian-listed oil and gas trust to launch since Flaherty's Halloween surprise in 2006.

The company holds only foreign oil-producing assets - 1269 bopd of light oil production in Texas - a loophole that excludes it from the new Canadian tax regime. The founders of Eagle Energy believe this new structure will serve as a template for other oil and gas companies.

They raised $150 million in their initial public offering at $10/share last November with an additional $20 million as well via a concurrent sale of securities to their vendor.

The company quickly followed up with…




Oilprice - The No. 1 Source for Oil & Energy News