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Cohen & Steers Tax-Adv Pref Secs and Inc Fund V.PTA


Primary Symbol: PTA

The Funds primary investment objective is high current income. The Funds secondary investment objective is capital appreciation The Fund seeks to achieve its investment objectives by investing at least 80% of its managed assets (i.e., net assets plus assets obtained through leverage) in a portfolio of preferred and other income securities issued by U.S. and non-U.S. companies, which may be either exchange-traded or available over-the-counter. In pursuing its investment objectives, the Fund seeks to achieve favorable after-tax returns for its shareholders by seeking to minimize the U.S. federal income tax consequences on income generated by the Fund. There can be no assurance that the Fund will achieve its investment objectives.


NYSE:PTA - Post by User

Comment by jz2538782on Mar 10, 2015 2:19am
124 Views
Post# 23505126

RE:RE:RE:RE:RE:2P Value

RE:RE:RE:RE:RE:2P ValueA bit of corrections and here is my calculations:

2P PV10 of US$176 million

Net cash of US$25.2 (US$53 million of cash and CA$35 million of debt using today's FX rate of 1.26)

==> total of US$201.2 = CA$254.3

==> 2P value on a per share basis = CA$0.291 / share

More importantly, the reserve report issued by GLJ is based on PRMS definition which uses a crude price forecast that is reflective of today's low oil price environment (i.e. the collapse of oil price has been taken into consideration when PTA and GLJ prepared this reserve report).

This is VERY different from those US-listed companies (and Gran Tierra, for that matter) which follow SEC reserve report standard, which mandatorily uses the first-day average price over the last 12 months (around $94/bbl if my memory is correct) before Dec 31 2014 as basis for future price assumptions.

As we all know, commodity price assumption has huge impacts on economic life limit, and accordingly reserve booking, of any E&P assets. Therefore, the reserve value that PTA reported can be seen as more CONSERVATIVE and UNDERESTIMATED compared to the US-listed peers.

Hope this helps
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