Oil Stocks: John Zaharym, CEO Harvest Energy Trust
John Zahary, president and CEO, Harvest Energy Trust (NYSE:HTE TSE:HTE-UN)
we're about 70% oil, 30% natural gas..for oil, 22% heavy oil, remainder in light and medium..
gas has certainly come off, 50% hedged..we've protected ourselves for next four to five months
we bought assets at good prices..certainly the ones in '03, '04..got them at great prices..cash flow go up per unit basis..distribution up as well..still retaining cash flow to invest..
we look at distributions on an ongoing basis..monthly or more often depending on prices..take into account cost structure, exposure to commodities, individual effects with respect to heavy oil vs light/medium oil vs natural gas..also look down the road..believe in sustainability..
what we like to do with assets is buy with good cash flow characteristics..we are value players..developmental opportunities in them..not so much producing them out as continuing to enhance those assets and keep them sustainable in long term..
on acquisition of Newfoundland refinery, saw an opportunity..take heavy fuel oil..do investment in facility..upgrade heavy fuel oil into gasoline and distillate commanding premium price..
with oil sands developments, that is a consumer of natural gas..most significant when doing thermal development..many of oil sands producers looking to go away from natural gas..we've become oil sands producer..recently expanded into Peace River oil sands area..look
we're about 70% oil, 30% natural gas..for oil, 22% heavy oil, remainder in light and medium..
gas has certainly come off, 50% hedged..we've protected ourselves for next four to five months
we bought assets at good prices..certainly the ones in '03, '04..got them at great prices..cash flow go up per unit basis..distribution up as well..still retaining cash flow to invest..
we look at distributions on an ongoing basis..monthly or more often depending on prices..take into account cost structure, exposure to commodities, individual effects with respect to heavy oil vs light/medium oil vs natural gas..also look down the road..believe in sustainability..
what we like to do with assets is buy with good cash flow characteristics..we are value players..developmental opportunities in them..not so much producing them out as continuing to enhance those assets and keep them sustainable in long term..
on acquisition of Newfoundland refinery, saw an opportunity..take heavy fuel oil..do investment in facility..upgrade heavy fuel oil into gasoline and distillate commanding premium price..
with oil sands developments, that is a consumer of natural gas..most significant when doing thermal development..many of oil sands producers looking to go away from natural gas..we've become oil sands producer..recently expanded into Peace River oil sands area..look
posted by Spelunca at 5:47 PM
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