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Parallel Energy Trust T.PLT.DB


Primary Symbol: PEYTF



GREY:PEYTF - Post by User

Comment by themangokidon Aug 14, 2012 2:18pm
96 Views
Post# 20216270

RE: There will be no dividend cut

RE: There will be no dividend cut

there will be no div cut...today.  sure sounds like management is softening up shareholders for a div cut announcement though. 

the company says "With respect to our distributions, we believe that our current level is sustainable given historical commodity prices, especially the ratio of natural gas liquids to oil prices. We continue to monitor those commodity prices and we would re-evaluate our current capital and distribution levels if it appeared that commodity prices were not expected to recover to historical levels in the medium to long term".

To me, it looks like commodity prices (perhaps excluding nat.gas) have receovered to historical levels, if not higher than normal historical levels.  I'm not sure how much more of a "recovery" management can realistically expect.

I get the feeling plt.un will wait till possibly the regulatory pipeline testing to announce the distribution cut in order to shift the blame away from management.  Clearly they should not have raised the distribution from 7.5 cents to 8 cents. 

Fingers crossed that a distribution cut will not occur but at this particular time I am thankful I only have a 25% position in this. 

I hope plt.un turns it around for larger shareholders.

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