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

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To: bill who wrote (5523)	2/22/2003 8:23:09 PM
From: Cogito Ergo Sum	Read Replies (1) of 11633

This bugged me. They are very hedged and didn't post details (ie. collars 3.50 - 4.50 for example) in the following link. The debt which is not insignificant didn't bother me as I see strong NG prices for a while. If they just maintained distributions and paid off debt I'd be a happy unitholder. What I'm 'speculating' here is that perchance they enacted hedges too soon and too heavily due to debt and will not benefit from rising NG prices significantly. Hedged into 2004 in this environment seems a tad extreme at this point. Maybe they are great hedges I don't know but maybe they went hog wild on the hedging too early... biz.yahoo.com Approximate percentage of 2003 anticipated production volumes hedged as at December 31, 2002 net of anticipated royalties, reflecting full production declines with no offsetting additions: 2003 Q1 Q2 Q3 Q4 Full Year ------------------------------------------------------------------------- Crude Oil 65% 38% 27% 28% 40% Natural Gas 69% 60% 60% 31% 55% ------------------------------------------------------------------------- ------------------------------------------------------------------------- As at December 31, 2002, the mark-to-market loss for 2003 hedges totals $13.8 million, $1.9 million for crude oil and $11.9 million for natural gas. For 2004, PrimeWest has none of its crude oil production and 12% of its natural gas production hedged with a combination of swaps, and option based instruments. As at December 31, 2002 there is no material gain or loss on a mark-to-market valuation of these hedges. I think we may get a buying opp too which is why I reduced so much notwithstanding forgoing the distribution (well not really forgone as I replaced it with AET.UN but I get less) Anyone see Bill Carrigan's article in the Star on RT and REITS. regards Kastel EDIT so no one has opinions on the sugar fund ??

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