# CNQ and PSK (PRAIRIESKY ROYALTY LTD COM)



## gibor365 (Apr 1, 2011)

just found out today that


> arrangement (the "Arrangement") under which shareholders of record of the Company received 0.02 of a common share ("PrairieSky Shares") of PrairieSky Royalty Ltd. ("PrairieSky") for each Canadian Natural common share held on the record date for the Arrangement, or a cash equivalent, depending on the number of Canadian Natural common shares held.


 
So, got today some PSK . 

I just don't understand when i should get cash for partial units as my remainder 0.9 shares?!


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## Tawcan (Aug 3, 2012)

I'm trying to understand that myself too. Wondering if PSK's dividends are considered eligible dividends or not.


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## gibor365 (Apr 1, 2011)

Tawcan said:


> I'm trying to understand that myself too. Wondering if PSK's dividends are considered eligible dividends or not.


I hold it in TFSA, so don't care , and it's 0.06 cents  ... I called CIBC IE and was told that cash portion should be deposited in 1 week... I'd prefer to have couple of more CNQ shares, than PSK


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## doctrine (Sep 30, 2011)

PSK has eligible dividends. Great company, some of the best royalty assets in North America in a single company, and zero debt, so wouldn't write it off so quickly.


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## gibor365 (Apr 1, 2011)

doctrine said:


> PSK has eligible dividends. Great company, some of the best royalty assets in North America in a single company, and zero debt, so wouldn't write it off so quickly.


Never did any research about PSK ... maybe it's a great company, but why would I need to own a couple of shares?! 
btw, just noticed that recently they cut dividends from 0.11 to 0.06 ... great companies don't cut dividends 
p.S. from royalties, I prefer DIV... much better fundamentals and better yield


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## doctrine (Sep 30, 2011)

Well you have to understand the company. They have the best and largest holdings of oil royalty assets in Canada and potentially the world on the public markets with the best royalties that Encana, Cenovus and CNQ had to offer. Oil royalties fluctuate with oil prices, so of course the company reduces dividends when the oil price drops, it's smart management. They don't borrow to pay the dividend, like other oil companies, including CNQ and SU are doing now since they aren't making money. In fact, they have *zero debt*. When oil prices rise, PSK will be able to pay out more, and the royalties will last forever. They have no capital expenditures. If oil prices double, PSK will likely double, whereas CNQ and SU are very unlikely to double. Don't own any shares yet but it would be my first buy in the energy space. But yes, a couple of shares means nothing.


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## My Own Advisor (Sep 24, 2012)

doctrine said:


> PSK has eligible dividends. Great company, some of the best royalty assets in North America in a single company, and zero debt, so wouldn't write it off so quickly.


This is my understanding as well. This means holding PSK in a taxable account will be fairly tax efficient.


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## hollyhunter (Mar 10, 2016)

Technically, both companies look good.


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## OnlyMyOpinion (Sep 1, 2013)

doctrine said:


> Well you have to understand the company. They have the best and largest holdings of oil royalty assets in Canada and potentially the world on the public markets with the best royalties that Encana, Cenovus and CNQ had to offer.


Just to note that Cenovus freehold lands were sold to Ontario Teachers Pension not to PrairieSky. The earlier Cenovus-Encana split was considered to leave oil-prone lands with Cenovus and gas-prone with Encana. 

http://www.cenovus.com/news/news-releases/2015/06-30-royalty-and-fee-land-business-sold.html


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## My Own Advisor (Sep 24, 2012)

Tempted to buy more PSK actually...


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## jerryhung (Mar 28, 2011)

on a separate note, CNQ is -4% after reaching 52w high today
$40.59-$38.33, ouch


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## godblsmnymkr (Jul 15, 2015)

jerryhung said:


> on a separate note, CNQ is -4% after reaching 52w high today
> $40.59-$38.33, ouch


might lead to a buying opportunity. they've only shut in 800 boe/d production.


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