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Portfolio of American Oil and Gas Royalty Trusts

If you are looking for high income, consider an American royalty trust that sells oil and gas from its proven and probable reserves. The trust pays shareholders a large percentage of its free cash in the form of cash distributions (dividends). Typically, the yield is in excess of five percent.

One downside of a royalty trust is that eventually it will run out of oil and gas so before you buy one, check the reserve life of the trust's holdings. Look for a reserve life of at least ten years and the longer the better. Of course a trust can purchase new reserves but there is no guarantee of their life span.

A trust pays its distributions from free cash flow (net income plus depreciation minus capital spending). Compute the ratio of the distribution with the cash flow. A small percentage means the distribution can be maintained or increased. Beware of a large percentage of 90 percent or more.

The day-to-day price of a trust usually tracks the price of oil and natural gas. When oil and gas prices fall, the share prices of most trusts will fall. Unlike a bond that pays you full face value when it matures, the future price of a royalty trust is not guaranteed.

IMPORTANT NOTE: Before investing in these trusts, check with your tax advisor about the tax treatment of the cash distributions.

Here are 16 trusts.

American Oil and Gas Royalty Trusts
Stock
Price Quote & Dividend
1-Yr Price Chart
BP Prudhoe Bay Royalty Trust
Chesapeake Granite Wash Trust
Cross Timbers Royalty Trust
ECA Marcellus Trust I
Enduro Royalty Trust
Hugoton Royalty Trust
Marine Petroleum Trust
Mesa Royalty Trust 
MV Oil Trust
Permian Basin Royalty Trust
Sabine Royalty Trust
San Juan Basin Royalty Trust
SandRidge Mississippian Trust I
Sandridge Mississippian Trust II
SandRidge Permian Trust
VOC Energy Trust
Price and dividend data from Quandl.


To inspect the performance of the American Oil and Gas Royalty Trusts portfolio, see the returns table and chart below. Portfolio values are computed using quarterly closes for from Quandl.

The 8 included in the portfolio computations are: BPT, CRT, HGT, MARPS, MTR, PBT, SBR and SJT. The current value of the portfolio assumes that $1,250.00 was invested (total of $10,000) in each at its closing weekly price for the current date in 2007. The 8 excluded from the portfolio computations because of insufficient price data are: CHKR, ECT, NDRO, MVO, SDT, SDR, PER and VOC.


American Oil and Gas Royalty Trusts - Return Results
Portfolio:
American Oil and Gas Royalty Trusts
Start date:
Nov-19-2007
Start value:
$10,000
End date:
Nov-19-2017
End value:
$8,276
Number prices
41
Minimum value occurred on Dec-31-2015
$5,245
Maximum value occurred on Dec-31-2011
$15,017
Total gain or loss (Start date to End date)
-17.24%
Annualized gain or loss (Start date to End date)
-21.33%
Total dollar value on End date of a $10,000 purchase made on Start date
$8,276
Average percent return for all possible buy/sell combinations
-6.50%
Number returns
820
Number profitable returns (Winners)
296
Percent profitable returns
36.10%
Number unprofitable returns (Losers)
524
Percent unprofitable returns
63.90%
Winners to losers ratio
0.56
Stock Return Calculator


Click chart to enlarge it.



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