The New Canadian Energy Income Trusts

Will the US oilpatch get flooded with Canadian juniors looking to build and sell production to the new Canadian energy income trusts?  Trusts are now allowed in Canada again – but with foreign assets. After all, energy income trusts in Canada completely transformed the way business was done in the junior markets – enriching management teams and shareholders greatly. Canadian trusts almost always had high valuations, and could buy lower-valued juniors with only 1000 boe/d production (barrels of oil equivalent) at very accretive prices. This turned into a cookie-cutter business model where management teams and investment bankers set up company after company with the goal of only getting to a few thousand boe production from one area – and then get . . . → Read More: The New Canadian Energy Income Trusts