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Paramount Energy Trust

Yahoo! CWEI

Yes, I am familiar with the philosophy of Paramount. They (and Harvest and some others)rightly realize the business (and all business, as opposed to asset accumulation) is based upon using one's capital in the most efficient way. That is the way to continually maximize returns. They do this with their concentration on cheap to acquire, cheap to drill, easy and fast to produce shallow "loose" gas. And they have been consistently doing it successfully even when the Alberta govt. actions temporarily derailed their rampup. Meanwhile, those that care nothing about the actual ongoing and busines, but prefer to invest based upon future hopes and dreams (including analyst estimates that someday a trust will pay out high distributions, as with COS.UN) have yet to bid up Paramount because they look at RLI (which I explained was silly) instead of looking at production per unit (Paramounts' is up 9% in Q1 versus the mean production in 2004). Paramount's 15% yield.

Paramount's outperformance will probably increase my return with capital gains which is why I added some more today. For example:

Paramount's CFPU (cash flow per unit) last Q is up 22% compared to COS.un's minus 23%.
Paramount's proven reserves per unit are up 0.5% in the last year while their P+P per unit is up 7%, while COS.UN's are both down 7%.

posted by agrossfarm @ 7:08 AM