Wow, this statement from that press release is a biggie:
"Among other reasons, as the withholding tax rate is not set to increase for unitholders of a Canadian trust treated as a corporation for U.S. federal income tax purposes, it is Pengrowth’s belief that its election to be treated as a corporation for U.S. federal income tax purposes is in the best interest of its unitholders. "
Going back to a corporate status would be a great thing!! WHen Fording Coal Trust went to a corporate structure the price they were bought out at quadrupled!! I got shaken out of that one at a large loss only to see the share price go from 20 to 80!! Not to be shaken out again!!! Pay no heed to the naysayers. The world is fast running out of oil and gas and he who controls that scarce resource will become richer beyond belief!!
When PGH converts to a corporate structure, they'll have to compete with the big boys, like Exxon, Schlumberger, and even the drillers like DVN for profits. The corporate world is nothing like the protected world of Canroy trusts. You should live so long to see "riches beyond belief".
Thanks!However, I learn that Canada has announced 2+ years ago that all tax free trusts will lose their tax free status at the beginning of 2011. You know what kind of approach will pgh take to deal with this policy change?