Equal Energy Ltd. (NYSE:EQU)

CAPS Rating: 4 out of 5

An oil and gas trust. Its portfolio of crude oil, NGL and natural gas interests is geographically diversified and balanced between natural gas and liquids production.

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1
Player Avatar dabigmonkey (< 20) Submitted: 5/27/2008 3:07:04 AM : Outperform Start Price: $2.49 EQU Score: +51.25

The company is aggressively paying down its debt while at the same time oil and natural gas prices are rising. Look for two more huge quarters this year in which they will seriously lower their debt and then possibly start issuing a monthly dividend again. Further into the future, through debt reduction the company will be well positioned to maintain profitablity when oil loses value to our current levels ($130 barrel). The new management seems (duly) keen on fiscal responsibilty. End of 08 prices should be in the $8-$10 range, with 09 prices in the $15 range and monthly dividends of roughly $.05/share.

With major nations/oil companies unable/unwilling to expand oil output and demand growing, I can't forsee oil dropping below the $100 mark in the next few years, and will hazard a guess that it will remain in the $125-$150 range.

In the interest of full disclosure it must be stated that I own shares of ENT.

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