# PLT.UN.TO - Parallel Energy Trust



## Chigu (Aug 6, 2009)

They announced the acquisition of the remaining 41% of the West Panhandle Field. A lot of people on this site have great knowledge, and just wanted to know what you guys/girls thought about the acquisition. A few details 

- purchase price of US$189.4 million (the "Acquisition"). The purchase price is equal to the net present value of the proved producing reserves attributable to the Bravo Interest, as established in the Ryder Scott Reserve Report 

- Parallel will issue, and the Underwriters will acquire, on a bought deal basis, 8,500,000 units of Parallel at a price of $7.05 per unit and $60 million principal amount of convertible unsecured subordinated debentures of Parallel ("Convertible Debentures") at a price of $1,000 per Convertible Debenture. The Convertible Debentures will bear an interest rate of 6.50%, and will be convertible into units of Parallel at a price of $9.50 per unit.

- In recognition of the favourable impact of the Acquisition on Parallel's operations and financial metrics, subject to the closing of the Acquisition, the Board of Directors of the Trust has confirmed an increase to the distribution payable on Parallel's units from the current $0.075 per unit per month, to $0.08 per unit per month

http://www.theglobeandmail.com/glob...20120321&archive=ccnm&slug=201203210776113001


The stock is down today $0.24 (3.26%) on the news. I don't have the experience in deciding if this is a good/bad deal (well looks bad because of the the drop in stock price), but for long term. Mixed messages, there will be some dilution because of this deal, but they did raise the dividend by 6.7%. Anyone else follow this stock? 

Disclaimer: I do own stock of PLT.UN, I think my cost is about $7.70.


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## al42 (Mar 5, 2011)

I picked up a bit of this for my TFSA in January when it dipped below 7 bucks after they released poor year end results.
I think the market was looking for a dividend cut but now that they are increasing it this should be a positive for the share price in the near term.
I have a close eye on this one though, anything close to 9 bucks and I'm out.


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## lakota (Apr 3, 2009)

went down to $6 then spiked to finish up in the green yesterday and now it is 5% down so far .
very risky stock.


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## doctrine (Sep 30, 2011)

Incredibly risky! They are paying out $12M a quarter and incurring $2M a quarter in net losses.. thats a total of $14M a quarter, or at this rate, they will go to zero in about 7 years.


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## webber22 (Mar 6, 2011)

Well it took them only 3.5 years to go bankrupt, November 9, 2015


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## londoncalling (Sep 17, 2011)

double the expected rate of performance put forth by doctrine. talk about beating expecations! :stupid::biggrin:


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