The New Canadian Energy Income Trusts
June 08, 2011 at 10:48 AM EDT
Will the US oilpatch get flooded with Canadian juniors looking to build and sell production to the new Canadian energy income trusts? Trusts are now allowed in Canada again – but with foreign assets. After all, energy income trusts in Canada completely transformed the way business was done in the junior markets – enriching management teams and shareholders greatly. Canadian trusts almost always had high valuations, and could buy lower-valued juniors with only 1000 boe/d production (barrels of oil equivalent) at very accretive prices. This turned into a cookie-cutter business model where management teams and investment bankers set up company after company with the goal of only getting to a few thousand boe production from one area – and then get . . . → Read More: The New Canadian Energy Income Trusts