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Special Report on

Investing in Royalty Trusts

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Royalty trusts are entities created to pay out (usually monthly or quarterly) at least 90% of the net cash flows generated from oil, coal, natural gas, or other energy assets to their owners, who are called unitholders. The trusts are neither partnerships or corporations and usually have no management or employees but are instead run by financial institutions. Other companies actually produce the resources and pay royalties to the trust. Although a variety of companies in different industries, including utilities and real estate, have set up their corporate structure as trusts, energy trusts are the most popular. The typical ...
However, unlike most corporations, its profits are not taxed at the corporate level provided a certain high percentage (e.g. 90%) of profits are distributed to shareholders as dividends . The dividends are then taxed as personal income. This system, similar to real estate investment trusts , effectively avoids the double-taxation of corporate income.
Investing in Royalty Trusts
The two of us just sat there eating some leftovers from KD’s Bar BQ, drinking from sweaty bottles of water, watching it. The numbers on the rusty old meter just kept rolling over. One…by one…by one. “This has to be the best business in the world,” I said. “Yep, nothing can get done without them. They all need our compressors.” the company’s chief engineer said in a thick Texas accent. 412…413…414… “Is this for real?” “Yep. The compressors are essential for the wells to work.” 421…422…423… “No. No. No. I get that. In fact, I love that. But I mean this – the numbers,” I said. “Ohhh, those. You betcha. They’re real…” 429…430…431… ... market research, surveys and trends
How to Invest in Oil – Tips for Getting Started | Shrewd Investments
Out of all the commodities in the world, oil is perhaps the most valuable. It is also one of the most profitable, and you do not have to be a wealthy tycoon to invest in it. If you want to learn how to invest in oil, you will be glad to know that there are many means of doing so. Moreover, there are many advantages to investing in this commodity. Here are just some of the many reasons why people are choosing to invest in oil: To hedge petrol costs. Because oil is a limited resource, and is more valuable than unlimited ones. Investing in oil can help keep gas prices from rising. Not investing in oil can hurt stock. Many believe ... market research, surveys and trends


Are foreign bank CDs worth the risk? - Personal Finance blog ...
With different banking regulations and no FDIC protection, foreign banks bring additional risk that might outweigh the relative safety of CDs. Question: My wife and I are both unable to work and live on a fixed income. We supplement our income with interest from a 5.5% CD which matures this month. If we let the CD renew, the interest rate will be around 3.5%. I found a 6% CD at a bank in St. Vincent and the Grenadines, but I am somewhat leery of a foreign bank. What are your thoughts? --Alan Brady, Greensboro, North Carolina Answer: My first thought is of the movie version of "A Man for All Seasons," which depicts the ... industry trends, business articles and survey research
October 17, 2004; Kurt Wulff quoted in NY Times on Royalty Trusts ...
OIL prices have climbed more than 70 percent over the last year, and energy experts say they expect the cost to remain high as long as there is political unrest in oil-rich countries like Iraq, Venezuela, Nigeria and Russia. Of course, soaring commodity prices have been a boon for huge energy companies like Exxon Mobil, which closed at $49.02 on Friday, up 30 percent from a year ago. But investors who want to tap into the high price of energy may want to consider an investment that is not as well known: energy royalty trusts. "The wealthy Texas families have owned these for years," said George B. Lucas Jr., a principal of ... industry trends, business articles and survey research
Kayne Anderson Energy Total Return Fund, Inc. Provides Unaudited Balance Sheet ...
today provided a summary unaudited balance sheet and announced its net asset value and asset coverage ratios under the Investment Company Act of 1940 (the "1940 Act") as of June 30, 2010. As of June 30, 2010, the Fund's net assets were $744 million and its net asset value per share was $21.78. As of June 30, 2010, the Fund's asset coverage ratio under the 1940 Act with respect to senior securities representing indebtedness was 411% and the Fund's asset coverage ratio under the 1940 Act with respect to total leverage (debt and preferred stock) was 308%. market trends, news research and surveys resources
CARNIVAL PLC - Half-yearly Report
July 1, 2010 RELEASE OF CARNIVAL CORPORATION & PLC QUARTERLY REPORT ON FORM 10-Q AND CARNIVAL PLC GROUP HALF-YEARLY FINANCIAL REPORT Carnival Corporation & plc announced its second quarter and six month results of operations in its earnings release issued on June 22, 2010. Carnival Corporation & plc is hereby announcing that today it has filed a joint Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission ("SEC") containing the Carnival Corporation & plc 2010 second quarter and six month interim financial statements, which results remain ... market trends, news research and surveys resources


Income trusts are efficient at investing, growing, PwC survey shows
oil and gas royalty trusts and real estate income trusts (REITs) were included in the survey. PricewaterhouseCoopers ( provides industry- ... technology research, surveys study and trend statistics
Bridge Between NAICS and SIC: Holding and other investment offices ...
includes scope and methodology. Figures to the left of NAICS codes indicate the percent of NAICS receipts represented by this part; and link to Table 1 where other parts of the NAICS are shown. links to 1997 and 1992 Comparative Statistics for whole SICs. N=Comparable data not available D=Withheld to avoid disclosure =sum of NAICS parts listed below the symbol   links to Comparative Statistics for 1992 and 1997 (Bridge complete.) SIC derivable from NAICS data. (Drawbridge slightly open.) Almost comparable Sales or receipts from NAICS are within 3% of SIC sales or receipts. (Drawbridge open.) Not comparable SIC sales ... technology research, surveys study and trend statistics
Investing for Income in a Down Economy - Graziadio Business Report
As equity markets fall and a recession develops, investors are faced with the "What do I do now?" question. At this point in the business cycle, it is common for investors to move all their resources into cash and cash-equivalent investments while other investors who desire higher rates of return without exposure to equity markets turn to income-generating securities, like bonds, and suffer the low yields. Still others, who seek to minimize the risk of loss, turn to blue-chip-type equities with high-dividend yields and some potential for capital appreciation. However, there are other alternatives that share ...
Canadian Stocks: Partnership and trust units, gas royalty ...
I'm striving to learn more about the risk and benefits of investing in partnership or trust units:More specifically how to evaluate such investments.  I have searched unsuccessfully for reading materials on this subject. It's my understanding that S&P has or is about to launch a comparative index ffor trust units. Your help with this will be gratefully appreciated.   Answer This is a very good question. I am glad you are investigating the risks involved in trust units, as they tend to be substantially more risky than most investors realize. Too many people jump in when they see the large yields, only to be ...
Can I invest in the DAX on the NYSE? - Yahoo! Answers
I invest in an index for the S&P 500. I'm interested in investing similarly in the DAX or the CAC, but I can't find a stock ticker name for any EFTs of these indexes. How can i invest in foreign markets through the NYSE? VGK will let you invest in a index of most European stocks, the MSCI Europe Index. Vanguard has a lot of foreign ETF's There are currently no comments for this question. * You must be logged into Answers to add comments. Sign in or Register . You need to call your brokerage. They will be delighted to guide you through the process. Anything traded, whether bonds, stocks, trusts, LLPs or ...