X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 4 hours Retired RAF pilot wins legal challenge over a wind farm
  • 6 hours U.S. Presidential Elections Status - Electoral Votes
  • 12 hours Speaker Pelosi, "Tear Down This Wall"
  • 1 hour Interest article about windmills and waterwheels in Europe
  • 23 hours NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 1 hour Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 17 hours Disaster looming in UK offshore wind power
  • 1 day Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 1 day “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days Minerals, Mining and Industrial Ecology
  • 1 day Scientist clone endangered Black Footed Ferret from Ferret that died 30 years ago . It's a 100% exact genomic match.
  • 1 day Pipeline vs Train vs Ship to Transport Crude Oil.
  • 1 day NG spot prices hit triple digits for weekend delivery
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 their…




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