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Bought a couple of USA small cap energy stocks. Ranger Oil and California Resources. Both have really solid NG production and no problems fully optimizing the NG market. Ranger is in the Texas Eagleforde and just reported outstanding results. CA Resources is interesting. They are a leader in CO2 capture. 30% of the electrical power in CA comes from NG. They own a NG power plant right on one of their production locations. There are no pipelines from other states into CA. RBC is very bullish on both. I took a good look at both and I was impressed. The CEO of Ranger was a very senior executive with Encana . NG selling at $7 plus is a licence to print money for good NG producers. Both of these companies have easy and short access to giant sized markets.
 

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Will be looking at buying two US oil and gas royalties. They look extremely attractive and are paying out a dividend in the 10% range. Their cash flows and income statements fully cover these payouts within very reasonable levels. RBC has great target price upsides for both. Their holdings are large and they are certainly in the right locations. They are Kimbell Royalty and Brigham Minerals. Have done a comparison to Freehold Royalty and imo they are superior to Freehold . RBC Is projecting a 78% upside on one and a 58% upside on the other. With the market conditions as they are I like the idea of reducing risk by getting a 10% dividend. IMO these dividends are quite sustainable and might be increased with the current prices for oil and NG. In many respects the only bull in this market is the energy sector.
 

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Interesting play. I remember looking at FRU during the previous oil bull. I am not sure how much risk is reduced with royalty companies but I believe there would be some. Have you looked at Topaz Energy Corp. (TPZ) | TSX Stock Price | TMX Money ? They do not have much history but I have heard they follow a royalty model as well. I haven't done any research.
Yes I have. I figure Freehold is a better option. I noted that RBC in their energy report said USA small and intermediate companies were undervalued compared to the Canadian companies . I think that is also the case with the royalties. One of these companies owns a large block in the Bakke, Permian and central Texas fields. There holdings are many millions of acres..11%dividend . . I hold this stuff inside my RRIF and it is just as easy to hold US stocks in a RRIF as it is a Canadian stock. From a tax standpoint there is no difference. The same for a RRSP.
 

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Will be looking at buying two US oil and gas royalties. They look extremely attractive and are paying out a dividend in the 10% range. Their cash flows and income statements fully cover these payouts within very reasonable levels. RBC has great target price upsides for both. Their holdings are large and they are certainly in the right locations. They are Kimbell Royalty and Brigham Minerals. Have done a comparison to Freehold Royalty and imo they are superior to Freehold . RBC Is projecting a 78% upside on one and a 58% upside on the other. With the market conditions as they are I like the idea of reducing risk by getting a 10% dividend. IMO these dividends are quite sustainable and might be increased with the current prices for oil and NG. In many respects the only bull in this market is the energy sector.
On second thought owning a US limited partnership can be a messy situation from a tax standpoint. The US has a whole different set of rules for these.
 
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