Here Is The NEXT US Energy Trust With 200% Upside

Ready for Another No Name Energy Trust with 100%+ upside and 30% Yields?

We had some very nice notes of thanks for our $CHKR Energy Trust recommendation now up over 100% from our $.56 cent entry point with 25% yields. We have also traded a number of these energy trusts in our All-Access trading room for 40%-80% profits with an almost a 300% gain from the $BPT energy trust that just went ballistic over just a few weeks:

$CHKR has had a similar run after we plowed in last December

Here's our next winner--$ECTM the ECA Marcellus Trust.


Action to Take: The Back to the Future Trade --Buy $ECTM Under $1.25 to lock in a 25%+ Yield with a $2.50 Target

Why are old school energy royalty trusts (which my old-timer ChangeWave subscribers will remember we crushed in 2003-2008) now hot again?

The answer is with Russian energy sanctions' and boycotts of oil and nat gas coming, we want to lock in extremely high 20%+ annual dividends, extremely low fixed operating costs, no Wall Street coverage (these energy trusts are too small and don't raise capital) and for the last 8 years of the energy bear market, they have returned -76% as an asset class.

Well, they are NOT LOSERS anymore.

The secret to making stupid money with these royalty trusts (with $100 oil and $6 natural gas) is to focus on those that have 1) a long expected life 2) fixed administration costs and 3) located in the richest energy fields in North America: A) The Permian Basin in Texas and B) The natural gas bonanza that is the Marcellus Basin in Pennsylvania.

The ECA Marcellus Royalty Trust clicks all those boxes like a champ. 

 Look at the yields and unit prices back in the last energy price boom and trust prices in 2013-2014:


So the math here is perfect for a similar run to the others above. These natural gas wells in the Marcellus are very long-lived--and many in this trust are wells that are drilled and proven but not developed yet ("PUDs").

$ECTM takes its royalty right off the top when the natural gas is sold and is moved into the pipeline for delivery. We estimate the life of the ECT production for 10 years plus--and with Russian natural gas now verboten in many regions of the world, US natural gas production is now the primary source for world supply to take up the slack.

In short, the world is looking to the American natural gas and LNG industry to plug the hole in the world's natural gas supply as Russian natural gas sanctions kick in. 

Thus--in the new global energy calculus post Russia's bloodthirsty invasion of Ukraine--ECTM is in the very right place at the very right time to help the Western world keep supplied with natural gas. While the current 52% yield may not be sustainable after a while...25% dividend rates are VERY sustainable. 

My advice is for you to lock in a nice amount of ECTM and keep riding the dividend gravy train for all long as we can! These oil and natural gas trusts have been insanely profitable for us in the last six months...I expect now less with ECTM! I LOVE taking advantage of Wall Street's lack of interest!

Toby

Tobin Smith