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

To: David Culver who wrote (573)	10/21/2000 12:02:46 PM
From: Lorne Larson	Read Replies (1) \| Respond to of 11633

By my calculations MXT should hit their target of 1:1 D/CF by the end of October or sometime in November. They announced when they released their Q2 results that distributions would be reinstated when the 1:1 ratio was reached. At that time they assumed this would happen with the December distribution, payable in January/2001. However oil prices have been stronger in Q3 and through October. My calculations are based on the following assumptions: BOE/day - 2100 1000 BOE hedged at $24.70 500 BOE hedged at $28.70 Oil at $31.00 average for Q3 Oil at $32.00 average for Oct/00 Expenses per quarter of $3,665,000 (as per Q2) FFO applied to debt The only real unknowns in respect to the above are the BOE/day and the expenses. However a poster on this board previously indicated he had talked to MXT concerning production, and the 2100/day number seems reasonable based on that posting. Expenses may be greater than I assume, depending on capital expenditures (MXT has some catch-up in this regard) and whether MXT will pay this from cash flow or from its bank line. In any event the Q3 results should be very interesting. MXT posted Q2 results on July 31, so we can maybe expect Q3 results by the end of October. Seems to me that there is at least a possibility that MXT will make an announcement on distributions at that time. Only bothersome thing is the tape action - MXT seems to be stuck in a trading range of $3.40 to $3.55. Would have expected some movement if reinstatement of dividends is imminent. Regards