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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 monthly closes for from Quandl.

The 9 included in the portfolio computations are: BPT, CRT, HGT, MARPS, MTR, MVO, PBT, SBR and SJT. The current value of the portfolio assumes that $1,111.11 was invested (total of $10,000) in each at its closing weekly price for the current date in 2008. The 7 excluded from the portfolio computations because of insufficient price data are: CHKR, ECT, NDRO, SDT, SDR, PER and VOC.


American Oil and Gas Royalty Trusts - Return Results
Portfolio:
American Oil and Gas Royalty Trusts
Start date:
Jun-24-2008
Start value:
$10,000
End date:
Jun-24-2018
End value:
$6,263
Number prices
121
Minimum value occurred on Dec-31-2015
$3,444
Maximum value occurred on Feb-29-2012
$11,473
Total gain or loss (Start date to End date)
-37.37%
Annualized gain or loss (Start date to End date)
-4.57%
Total dollar value on End date of a $10,000 purchase made on Start date
$6,263
Average percent return for all possible buy/sell combinations
-6.19%
Number returns
7,260
Number profitable returns (Winners)
2,750
Percent profitable returns
37.88%
Number unprofitable returns (Losers)
4,510
Percent unprofitable returns
62.12%
Winners to losers ratio
0.61
Stock Return Calculator





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