SBR is a single commodity, energy. Nat gas is coming out my #$%$. I like FFC's diversification in over 100 different companies paying preferred dividends.
Sentiment: Strong Sell
FFC is OK but SBR is essentially taxfree
Not at all.
You get a depletion deduction but either when you sell or you use up your depletion allowance, you pay taxes at the highest ordinary income rates. Royalties are taxes at the highest rate. Your depletion shield gets smaller every year.