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Dorchester Hugoton, Ltd. (DHULZ) Message Board

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  • rrb1981 rrb1981 Apr 19, 2001 2:50 PM Flag

    Doesn't DHULZ have a block of XOM stock

    What do you suppose they would hold XOM stock for? Dividends, maybe just to have some hedged assets? Anyway, I am probably going to buy a small lot of stock in DHULZ, but are there many other PTP's that you are aware of, oil related or other? Thanks

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    • I have no idea why DHULZ would hold such a large asset such as 64,000 shares of XOM in the asset column unless they think they might have to drill additional wells later, ostensibly on other property they have but have not drilled. I don't know whether DHULZ has any such undrilled property. I suspect they may be offered property periodically but there is always risk that the well could come up dry.
      Since we must be taxed for our share of the partnership annual profits, the IRS couldn't care less if we receive less than 90% of our share of partnership income in a distribution.
      With respect to other PTPs, I am sure there are others out there. One is KMP. But the only one I have ever been seriously interested in is DHULZ. KMP pays about 6% while DHULZ pays almost 8% based on $14 per unit. And since the earnings cover the distribution by 2 to 1, the distribution is not only safe but also subject to periodic increases as management deems fit.
      So, it surprises me that DHULZ is still at $14. Based on a 6% payout, it should be at $18.
      But, I realize that the tech fanatics don't understand the concept of dividends. They only believe in "momentum investing". They will receive their education eventually and then will understand the principles of dividends.

      • 1 Reply to JAVELIN2625
      • Well I doesn't bother me that DHULZ has 64,000 shares of XOM at all just curious as to why they would hold them, I did end up buying a very small lot of DHULZ today and am looking forward to the next dividend in the next 2 or 3 months. I am very aware of KMP as I own some shares(units) in it as well as other pipelines like APL and NBP. I'm always looking to pick someones brain hoping they have found a gem that I have missed. I to am a dividend fanatic. In fact i don't own any stocks that don't pay me to own them, and all of them pay more than 5 or 6%!! I never really ventured heavily into tech and the two times I did I got so nervous that I sold both of them for small losses. I do own some Philip Morris which pays a nice dividend but won't buy any more now that the price is shot up. Anyway, have you ever checked out HGT or SJT or MTR(maybe its MRT?) they are royalty trusts that have interests in the same area as DHULZ.