Pengrowth Energy TrustPGH

Morningstar Rating

Stock Research and Analysis

by Jennifer O'Connor

Pengrowth Energy Trust is a Canadian energy trust with a large, diverse set of mature assets. We feel these assets are of mediocre quality and that the trust lacks a well-defined long-term plan for value creation. The Western Canadian Sedimentary Basin Read more

Bulls Say

Pengrowth's quality oil production tends to attract premium pricing.

Pengrowth has interests in large oil fields from which upside potential could be realized via enhanced recovery techniques.

The trust is actively pursuing resource plays, such as its Lindbergh oil sands pilot, which could prove fruitful down the road. Read more

Bears Say

Pengrowth's acquisition-oriented business model will be untenable once income trusts become taxable in 2011.

Pengrowth's internal opportunities aren't very compelling.

In a rising interest rate environment, Pengrowth's yield won't look as attractive, and unit prices might fall. Read more

Strategy

Pengrowth has grown primarily through acquisition. The trust harvests its mature assets in order to replenish production declines. These assets include mature oil fields to which enhanced recovery techniques Read more

Management

Chairman, president, and CEO James Kinnear founded Pengrowth Energy Trust in 1988 and has led the trust ever since. The conflict between his management position and his board role is somewhat reduced by the role of John Zaozirny as lead independent Read more

Profile

Pengrowth Energy Trust is a Canadian energy trust with principal areas of oil and natural-gas production in the Western Canadian Sedimentary Basin and offshore eastern Canada. Read more

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