Michele Robitaille
StarPoint Energy Trust
SPN.UN-T
BUY ON WEAKNESS
Jan 06, 2006
Merging with Acclaim Energy (AE.UN-T). Have a good track record on the integration side. Can see some decent upside in this one. In terms of valuation, it is looking a little bit rich here. The outlook for the next year is quite good.
An oil based trust. Has been growing by acquisition. Recently made 3 acquisitions and is currently being merged with Acclaim (AE.UN-T). Likes the management. They have got a lot to prove in putting this together. There will be synergies that will be accretive to unit holders.
Merging with Acclaim (AE.UN-T) in January as well as applying for a listing on the NYSE. There will also be a seperate exploration company formed which will be run by Starpoint management. His concern would be on the slightly shorter reserve life.
Will be merging with Acclaim (AE.UN-T) and will be one of the largest trusts. Likes the management of both firms. The only issue would be integration problems but, on balance it’s a good move.
Merging with Acclaim (AE.UN-T). This will make it one of the biggest oil/gas trusts. Has one of the lower payout ratios. Expects distribution increases in 2006. Owns Acclaim, but not Starpoint.
Has a great record of growing through acquisition. Their acquisition of Acclaim makes sense. Hasn't rebounded quite as well there's some of the other oil and gas companies. The patient in looking for an entry point.
There is a friendly merger with Acclaim Energy (AE.UN-T). Likes Royalty Trusts. The only risk factor is that there are two large energy trusts making one of the largest Royalty trusts. There will be a lot of integration risks. It will be listed on the New York stock exchange giving access to US investors.
Acclaim Energy (AE.UN-T) and Starpoint Energy (SPN.UN-T) are amalgamating. If you own either of these, continue to hold. Likes the prospects, especially with the current commodity prices.