{"id":300393,"date":"2010-02-09T15:44:00","date_gmt":"2010-02-09T20:44:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:393613"},"modified":"2010-02-09T15:44:00","modified_gmt":"2010-02-09T20:44:00","slug":"us82-oil-equals-higher-distribution-at-canadian-oils-sands-trust","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/300393","title":{"rendered":"US$82 oil equals higher distribution at Canadian Oils Sands Trust"},"content":{"rendered":"<p>If oil prices get back to US$82 a barrel and stay there, <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=COS.UN&amp;id=3424105\" >Canadian Oil Sands Trust<\/a> could raise its quarterly distribution to 50\u00a2 a unit, up from 35\u00a2 now, says Versant Partners analyst Mark Friesen.  <\/p>\n<p>&quot;Distributions will be somewhat impacted following the mandatory conversion to a corporation at the end of 2010; however, management of the Trust has indicated that it will continue to maintain a discretionary dividend policy going forward,&quot; he said in note to clients <\/p>\n<p>&quot;At our oil price estimates, we estimate that Canadian Oil Sands will pay roughly $1 billion of distributions this year, and without a competing use of funds will be in a position to pay roughly $1 billion of dividends next year before becoming cash taxable, likely in the end of 2011 or early 2012 time frame based on our oil price outlook. <\/p>\n<p>Mr. Friesen initiated coverage of Canadian Oil Sands with a Buy rating and a $34 target price.<\/p>\n<p>In addition to the company&#39;s high level of free cash flow that will be used to pay distributions, but also consolidate additional working interests at Syncrude, it&#39;s flagship project, the analyst likes Canadian Oil Sands for its 95% unit price correlation to oil prices, its relatively low capital re-investment risk and the long life nature of its asset base. <\/p>\n<p>&quot;Given our positive oil price outlook and the strong correlation of Canadian Oil Sands units to oil price, we would expect the units to perform well in an<br \/>environment of strong oil prices,&quot; he said. <\/p>\n<p><a href=\"mailto:dpett@nationalpost.com%20\">David Pett<\/a>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/np\/aggbug.aspx?PostID=393613\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If oil prices get back to US$82 a barrel and stay there, Canadian Oil Sands Trust could raise its quarterly distribution to 50\u00a2 a unit, up from 35\u00a2 now, says Versant Partners analyst Mark Friesen. &quot;Distributions will be somewhat impacted following the mandatory conversion to a corporation at the end of 2010; however, management of [&hellip;]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,7],"tags":[],"class_list":["post-300393","post","type-post","status-publish","format-standard","hentry","category-energy","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/300393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=300393"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/300393\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=300393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=300393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=300393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}