Just reading through the S-1 for ECT. The trust proven and unproven reserves are estimated at 102.4 BCF. At the termination date of March 2030, the trust will sell the interest in the wells and distribute the proceeds to the unit holders. Of course we wold like to see natural gas prices recover form their historic lows and see the value of ECT shares and the distributions increase.
I read through many posts here and think we should deal in the facts and not supposition where this investment is concerned. The trust has very valuable assets with the proven and unproven reserve estimates. NG prices are likely to increase as demand increases. Production was up 18% over this qtr last year but that was offset by lower pricing. 50% of the production is hedged through I believe March 2014 so there is downside protection which also limits upside potential.
My take on ECT is that it is a long term investment with significant potential to provide excellent distributions and increase in value. There are of course risks to this but I believe the rewards outweigh the risks. In our current culture if something is not shake n bake then it is trashed. Would like to here others thoughts about this as well...
I don't think its a bad standalone investment but there are plenty of cheaper trusts out there. I would never pick this one as it trades 2x the levels of other trusts. I do like to focuse on nat gas though.