Today, Joanne A. Hruska, CFA commented about whether LRE-T, CR-T, BNP-T, PMT-T, ESN-T, SGY-T, TOG-T, SGL-T, WCP-T, SPE-T, PD-T, CFW-T, PONY-T, CPG-T, VET-T, SU-T, IBR-T, PXT-T, GTE-T, ERF-T, CTA-T, AAV-T, TBE-T, CQE-T, BTE-T, LEG-T, COS-T, CJ-T, OBE-T, ATH-T are stocks to buy or sell.
More gas weighted than oil weighted. The knock on the stock was that their debt was getting up. Had some management changes at the top, and people were not showing it any love. Have a fair amount of gas production hedged, so if gas doesn’t work out, they are going to be well protected. Have made their operations much more efficient. Feels the valuation is definitely among the lower end of similar sized yielding trusts.
Probably the cheapest yield name in the space for similar sized companies. Has been unloved. It’s probably about 2.5X cash flow where the average is 5 to 7 over the longer term. Just made a couple of acquisitions, this expands their plays. Increased their land inventory, and have a new core area. Looking for some good things to come out of this. Very cheap.
Recently added more to her holdings. Thinks you will see the stock probably approach $20 in the next 2-3 years.