Energy funds ride soaring crude prices National Edition

• Published in: National post (Toronto)
• Main Author: Kirzner, Eric
• Format: Newspaper Article
• Language: English
• Published: Don Mills, Ont Postmedia Network Inc 09.08.2004
• Subjects: Business income; Energy industry; Income funds; Natural gas utilities; Pipelines; Prices; Rates of return; Trusts
• ISSN: 1486-8008

In the energy sector, the 28-company CIBC World Markets Oil and Gas category recorded a very healthy 4.3% return on the month, against a backdrop of historic high oil prices. The average trust in the category has recorded an 8.9% gain on the year and when you factor in the distributions, the number balloons to an impressive 16.3%. Eighteen of the funds have double-digit gains (69% of the category) and of these, 11 are ahead by 20% or more. The largest gains in the year to date have been recorded by the smaller funds. The leader in the category remains the $366-million Bonterra Energy Income Trust (BNEun/TSX), which has recorded a 10.5% return on the month, leaving it with a remarkable 65.6% total return on the year. Bonterra has producing oil and gas properties in Alberta and Saskatchewan, and is also engaged in exploration. Reflecting its remarkable price run-up this year, the yield has fallen to 7.7% as compared with the 12.5% average for the oil and gas category. Tiny Calgary-based Enterra Energy Trust (ENTun/TSX), which has properties in the western Canadian basin, gained 2.7% on the month and is a distant second in return performance with a 31.1% total return on the year. Graphic/Diagram: CIBC World Markets, National Post / CIBC World Markets Specialty Business Income Trust Report: (See print copy for complete graphic/diagram.); Graphic/Diagram: CIBC World Markets, National Post / Power & Pipeline Income Trust Report: (See print copy for complete graphic/diagram.); Graphic/Diagram: CIBC World Markets, National Post / Oil & Gas Income Trust Report: (See print copy for complete graphic/diagram.)