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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Scott Mc who wrote (512)	9/10/2000 11:35:05 AM
From: Lorne Larson	Respond to of 11633

MXT's operating costs are higher than other trusts because of the stripper type wells they operate. However their royalties are also much lower. Because of these factors, MXT takes a bigger hit than other oil and gas trusts when prices fall, and get a bigger bang when prices rise. That's why, in my opinion, they are a great buy right now. That's also why the hedging floor at $20.00 for 3/4 of their production is so important. I would really hope they will do better than .60 when dividends are restored. Their cash flow should support $1.00 quite easily - even if prices drop to around $28, and even after allowing for debt service and capital costs. They owe it to their long-suffering unit-holders.