Pengrowth Energy Trust

Pengrowth Energy Trust

Pengrowth Energy Trust is a Canadian oil and natural gas royalty trust based in Calgary, Alberta. Established in 1988, it is one of the largest of the Canadian royalty trusts ("Canroys"), with a market capitalization of US$ 4.12 billion at the end of 2007. Its assets are approximately evenly distributed between oil and natural gas.

Pengrowth's assets are in the Western Canada sedimentary basin, a geologic region which has a long history of productivity in crude oil and natural gas. In addition to the properties in western Canada, the company has assets in the Atlantic Ocean off of Nova Scotia. Pengrowth produces petroleum ranging from heavy crude oil to light oil, natural gas liquids, and natural gas. Proved reserves as of 2006 were reported to be of oil equivalent (boe) with an additional of probable reserves. Average daily production in 2006 was (bpd) with a projected amount of 86,000 to 87,000 for 2007; figures verifying these totals should be released in early 2008.

In addition to traditional oil and gas reservoirs, Pengrowth also is expanding its operations into oil sands and coalbed methane.

Pengrowth Energy Trust pays a high dividend, yielding an annual rate of 15.9% in early 2008; in addition, it pays out monthly, a relative rarity for equities listed on the New York Stock Exchange. Since Pengrowth's assets are considered a depletable resource, its dividend payments are not taxed at the regular dividend rate, but rather as return of capital instead of return on investment; this is an additional tax advantage in the United States, and applies to all royalty trusts.

The Pengrowth Saddledome, home to the Calgary Flames of the NHL, is named after the company.

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