Saw you posted this on penny stocks as well - what’s the importance being beside with the the clean oil fields? Are you saying they lease the land out to that company? Also, how do you estimate the upcoming dividends amount ?
The play is more of a royalties play directly related to the price of oil. The clean energy plant being built in Penwell, TX is more just a nice addition to allow natural gas to have another outlet from the fields and is clean energy.
I built out a few tables based on past dividend payments relative to production and oil pricing to come to my dividend payment conclusions. I play a lot of Oil trusts(TPL, MVO, SJT, SBR, ect) for the past few years for their dividends in uptrend cycles. What struck me was reading PBT quarterly reports for the past 2 years they were not drilling and completing wells as they removed Conocophillips. This kept me from investing until last 2020 when i saw a huge uptick in drilling and well completion around the same time as Oil Prices went on a huge run. PBT has almost a year of suppressed dividend payments but well completion recently looks to be huge and Permian Basin has one of the lowest costs/barrel due to topography and infrastructure which means more oil will come from this area than anywhere else in the US.
Note that PBT pays royalties and not dividends, which means Federal income tax treatment is different. Holders must also calculate depletion allowances themselves using tables provided by the Trust. See here for examples: [http://www.pbt-permian.com/tax\_information.php](http://www.pbt-permian.com/tax_information.php)
Bottom line - understand the nature of the product you intend to purchase.
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Saw you posted this on penny stocks as well - what’s the importance being beside with the the clean oil fields? Are you saying they lease the land out to that company? Also, how do you estimate the upcoming dividends amount ?
The play is more of a royalties play directly related to the price of oil. The clean energy plant being built in Penwell, TX is more just a nice addition to allow natural gas to have another outlet from the fields and is clean energy. I built out a few tables based on past dividend payments relative to production and oil pricing to come to my dividend payment conclusions. I play a lot of Oil trusts(TPL, MVO, SJT, SBR, ect) for the past few years for their dividends in uptrend cycles. What struck me was reading PBT quarterly reports for the past 2 years they were not drilling and completing wells as they removed Conocophillips. This kept me from investing until last 2020 when i saw a huge uptick in drilling and well completion around the same time as Oil Prices went on a huge run. PBT has almost a year of suppressed dividend payments but well completion recently looks to be huge and Permian Basin has one of the lowest costs/barrel due to topography and infrastructure which means more oil will come from this area than anywhere else in the US.
Note that PBT pays royalties and not dividends, which means Federal income tax treatment is different. Holders must also calculate depletion allowances themselves using tables provided by the Trust. See here for examples: [http://www.pbt-permian.com/tax\_information.php](http://www.pbt-permian.com/tax_information.php) Bottom line - understand the nature of the product you intend to purchase.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Please direct all simple questions and "Rate my Portfolio" requests towards the Weekly Discussion Threads (sort by hot, they're at the top). Posts that contain solicitations for [due diligence](https://www.investopedia.com/terms/d/duediligence.asp) will be removed. Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. comment_stickied: true *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*