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Esprit Energy Trust (EEE.UN.TO)

PAST TOP PICK
(A Top Pick Sept 2/05. Down 13% not including distributions.) Has not been able to grow its production very successfully because they have gas production which has a higher decline than oil. Represents a reasonable yield and better value than some of the others.
WATCH
Has had some disappointments recently, so not one of his favourites. It is natural gas oriented with good reserve life. Able to increase its production on a per unit basis year over year. Struggling a bit and he is watching it.
BUY
Very much focused on natural gas. Had a few problems in their Q2 production when they had some turn arounds at a couple of natural gas facilities. On a valuation basis, it represents pretty good valuation here.
PAST TOP PICK
(Top Pick July 29/05. Up slightly.) One of the better take out candidates. Gas weighted and long reserve life assets.
BUY
A medium cap oil and gas trust. They recently consolidated their dual class share structure. Have a good gas exposure. Should get some good spikes this winter which will create a lot of free cash flow.
PAST TOP PICK
(A Top Pick July 29/05. Up 8.5%.) Increased their distributions. Run into some problems even with some of the older properties. 55% payout ratio. Reserve life index of close to 10 years. An attractive take out candidate.
TOP PICK
82% gas reflecting a positive a good outlook for gas for the coming winter season. Represents the best relative value in the trust sector for a gas weighted trust. Debt levels are a little high. Payout ratio is about 70% but is coming down. A valuation play.
BUY
Good value. Has always traded at a discount. Has some good capital appreciation potential.
TOP PICK
A recent conversion. Stock was held back for some time. It had relatively concentrated production in the Olds area of Alberta, but that's no longer as they acquired Resolute Energy which increased production by 50/60%. Now poised for some upside. Could be a pretty good take out candidate.
BUY
Has a reasonably good outlook.
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