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I used to own SJT, and I have noticed that its price has gone down lately, and I was thinking about buying some as a hedge against my home heating bills. Nat Gas has gone up in my area from .28 to .48 dollar/therm. I saw the low price of SJT and looked into some of its financial statements.
This is a natural resource trust deriving most of its revenue from natural gas. One of the reasons for the low price is it skipped a dividend payment in April stating that there was not enough revenue in Feb to make the Apr. Dividend worthwhile. The trust is not depleting that rapidly, only down about 5 million x million cu ft y-o-y (1% decline).
Most of the revenue loss is due to the lower price of gas received. Despite lower gas costs, capital expenditures and operating expenses climbed to squeeze profits more. regulatory charges also increased. It seems all wells being drilled are conventional, not frac'd shale wells.
Here is a nice summary of the operations of this property. Once again I'm not sure if this is typical of a nat. gas producting company.
http://yahoo.brand.edgar-online.com/...cik%253d319655
This is a natural resource trust deriving most of its revenue from natural gas. One of the reasons for the low price is it skipped a dividend payment in April stating that there was not enough revenue in Feb to make the Apr. Dividend worthwhile. The trust is not depleting that rapidly, only down about 5 million x million cu ft y-o-y (1% decline).
Most of the revenue loss is due to the lower price of gas received. Despite lower gas costs, capital expenditures and operating expenses climbed to squeeze profits more. regulatory charges also increased. It seems all wells being drilled are conventional, not frac'd shale wells.
Here is a nice summary of the operations of this property. Once again I'm not sure if this is typical of a nat. gas producting company.
http://yahoo.brand.edgar-online.com/...cik%253d319655
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