Anyone notice the production drop in the last report? Down to 79 mcf per day.
For all of you 5 year-holders, which I was until A few weeks ago, the daily production 5 years ago was 100 mcf per day. Production has dropped 21 % in 5 years, and they have been spending a lot. Remember, NG production is shaped like a bell curve - when it drops it can drop fast.
Many people do not realize that unlike Canadian royalty trusts, U.S. oil/nat gas royalty trusts (which HGT is) by tax laws are prohibited from acquiring additional reserves. Therefore reserves will eventually drop to zero and the trust will be dissolved. Given that, while there may be temporary increases in production, over the longer haul, production is guaranteed to drop.
That doesn't mean HGT is a bad investment, but it does mean that anything over about a PE ratio of 5 is too high a price for the stock. It is definately NOT a growth stock.
I have sold my HGT at a decent profit and when it drops to a realistic level will buy it back just for the dividends.