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Canadian Energy: Exploration & Production

These companies, originally structured as Canadian royalty trusts (CANROYs), are oil and natural gas producers. As trusts, they didn't pay federal income taxes if they distributed their income to shareholders. The resulting double-digit dividend yields grabbed dividend investors’ attention in the mid-2000s. Eventually the government cracked down and starting in 2011, trusts were required to pay the same taxes as regular corporations. Consequently, all trusts converted to corporations, and many cut their dividends. This table summarizes what happened. 

Trust Corporate Conversion Scorecard

Trust Announce Date Conversion Date

Dividend Change

Advantage 3/09 6/09 -100%
ARC Energy 5/10 12/31/10 0%
Baytex Energy 5/10 12/31/10 0%
Bonavista Energy 5/10 12/31/10  
Bonterra 8/08 11/08 -18%
Canadian Oil Sands 4/09 12/10 -60%
Crescent Point Energy 7/09 7/09 0%
Daylight Resources 1/10 5/10 -38%
Enerplus Resources 5/10 12/31/10 0%
Enterra 1/10 5/10 no dist.
Fairborne Energy 10/07 12/07 -100%
Freehold Royalty 5/10 12/31/10 0%
NAL Oil & Gas 5/10 12/31/10 -22%
Paramount 3/10 6/30/10 0%
Pengrowth 5/10 12/31/10 0%
Penn West 9/10 12/31/10 -40%
Peyto Energy 5/10 12/31/10 -50%
Progress Energy 11/08 1/09 0%
Provident Energy 6/10 12/10 -25%
Trilogy 12/09 2/10 -30%
Vermillion Energy 5/10 9/1/10 0%
Zargon Energy 3/10 12/31/10 -22%

U.S. Tax Considerations 
If you're a U.S. citizen, Canadian corporations withhold 15% of your dividends deposited in regular accounts for Canadian Taxes.  However, that deduction does not apply to tax-sheltered accounts such as IRAs. For regular accounts, you can apply for to the U.S. IRS for a refund (foreign tax credit) for at least a portion of the amount withheld. Many Canadian firms provide information for income tax filing instructions for U.S. unitholders on their Websites. Nevertheless, U.S. investors should consult with a qualified tax advisor before investing.

Canada E&P Listed On U.S. Exchanges

Most Canadian energy stocks are listed only on the Toronto stock exchange. However, the following are also traded on either the NYSE or AMEX.

  • Baytex Energy (BTE)

  • Enerplus Resources Fund (ERF)

  • Pengrowth Energy (PGH)

  • Penn West Energy (PWE)

  • Provident Energy (PVX)

 Canada Energy E&P (Toronto Stock Exchange)

Here are the major energy exploration and production stocks listed in Toronto.

  • ARC Resources (ARX)

  • Baytex Energy (BTE)

  • Bonavista Energy (BNP)

  • Bonterra Energy (BNE)

  • Canadian Oil Sands (COS) 

  • Crescent Point Energy (CPG)

  • Daylight Resources (DAY)

  • Enerplus Resources Fund (ERF)

  • Freehold Royalties (FRU) 

  • NAL Energy (NAE)

  • Perpetual Energy (PMT)

  • Pengrowth Energy (PGF?)

  • Penn West Petroleum (PWT)

  • Peyto Exploration & Development (PEY?) 

  • Provident Energy (PVE?)

  • Trilogy Energy (TET) 

  • Vermilion Energy (VET)

  • Zargon Oil & Gas (ZAR)

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Missing In Action

If you can't find a Canadian Energy stock, it may have been acquired or changed its name. Here's a list of former trusts that have recently disappeared.

  • Acclaim Energy and StarPoint Energy merged to form Canetic Resources.

  • Canetic Energy was acquired by Penn West Energy.

  • Esprit Energy was acquired by Pengrowth Energy.

  • Find Energy was acquired by Shiningbank Energy.

  • Focus Energy was acquired by Enerplus.

  • Harvest Energy was acquired by Korea National Oil.

  • Ketch Resources was acquired by Advantage Energy Income.

  • Paramount Energy changed its name to Perpetual Energy (PMT)

  • Petrofund Energy was acquired by Penn West Energy.

  • PrimeWest Energy was acquired by Abu Dhabi National Energy.

  • Sequoia Oil & Gas was acquired by Daylight Resources.

  • Shiningbank was acquired by PrimeWest Energy.

  • Sound Energy was acquired by Advantage Energy.

  • Thunder Energy was acquired by a private equity firm.

  • Vault Energy was acquired by Penn West Energy.

  • Viking Energy was acquired by Harvest Energy

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