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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: David Culver who wrote (575)	10/21/2000 8:38:32 PM
From: Lorne Larson	Read Replies (1) of 11633

I'm hoping the high dividends being paid by the other oil and gas trusts explains why MXT hasn't moved much lately. Seems like a reasonable explanation. In terms of the possible dividend, at todays oil prices MXT should show FFO of $16-$17 million/year, which with 12 million units outstanding would be $1.30-$1.40/unit. I'm assuming they won't payout all of that, because some will be used for debt payment and/or capex. I'd guess a payout of $1.10/year. At a unit price of $3.42, that's an annual yield of 32%. One thing to remember is that MXT's present hedges (1000 BOE at $24.70 and 500 BOE at $28.70) come off on Dec 31, and are replaced by a hedge of 1500 BOE at $30.00. If oil prices stay above $30, this will mean substantially increased cash-flow for MXT in 2001. I'll do a calculation at $30 and let you know what I come up with. All of the above of course predicated on no unexpected expenses or unexpected drops in production.

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