Vault Energy Trust (VNG.UN.TO)

Possibly a takeover target. Last couple of quarters have been disappointing. Production has declined more than expected. Relatively high debt. He owns a small amount.

Debt levels and payout ratios are high. Some of the assets it is developing are not as high quality as some others.

Getting cheap at this price. Estimated production is 8000/8200 BOE’s a day. If it stays down at this price, it could be a takeover target.

Experienced management. About 60% natural gas and 40% oil. 1st quarter results were in line with expectations. Payout is about 71%. Reserve life index about 7.5 years. Good candidate for a merger or a takeover.

A good hold at these prices. Good quality management team. Trades at a discount to its peers.