Brian Prokop
Ketch Resources Trust
KER.UN-T
HOLD
Apr 05, 2005
Initially were a little shy of a production level, but brought out about 1,000 BOE's a dayof production that was behind pipe. That made them very solid for the rest of the year. Payout ratio is probably in the range of 60/65% which is excellent.
Has performed very mediocretly compared to others. Good assests. Recently made a number of changes in management which should be good. Should be able to grow this a little better than what they have done in the past.
Somewhat undervalued. Had a bit of a rough ride. Changed management. Has not performed as well as some of the others out there and hopefully new management will tell the story.
Feels the valuations in the oil/gas royalty trusts are very reasonable. If oil/gas prices drop further, they will be even better value. This one is a natural gas focused trust. Has shorter reserve life index, so would prefer others.
Has been surprisingly disappointing in terms of the performance. Excellent management team with a spectacular track record. The ultimate fate of this company is probably is to get bought out. That will give you a premium from where it is today, but not a huge one.
Ketch Resources has been an outperform compared to other gas trusts. Other gas trusts have imploded over the past month and a half. "This one looks like its ship is turning".
Missed a lot of their production numbers so he sold his holdings. A gassy name. Thinks it will be taken over in the next year but don't expect too much of a premium on this.