And this is a three month chart comparing them:
It makes sense for the share price of the royalty trust to decline as natural gas prices have declined (the natural gas ETF closely tracks natural gas prices), but I don't know what the explanation is for the recent divergence. It is possible, of course, that the trust's distributions could rise if an increase in production outweighs the drop in natural gas prices, but I don't know of any estimates of future production increases for this trust.
1About 90% of this trust's royalties come from natural gas production, with the balance coming from oil production.
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3 comments:
I thought by now you'd have already passed gas.
That was not written by me Dave. I am not that smelly a guy.
Just when I start thinking about how pointless blogging is, I get a couple of comments to support the thought. Neither of you could figure out the timely allusion of the post's headline?
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