royalty trust

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Royalty Trust

A corporate structure for companies involved in oil, gas, mining, or similar industries. In a royalty trust, profits are not subject to corporate taxation, provided that at least 90% are distributed as dividends to shareholders. Royalty trusts prevent double taxation of dividends. Royalty trusts are generally publicly traded and their shares behave just like ordinary stocks. They exist in both Canada and the United States. T. Boone Pickens created the first royalty trust in 1979.

royalty trust

An ownership interest in certain assets, generally crude oil or gas production and real estate. Unlike the usual corporate organization, a trust arrangement permits income and tax benefits to flow through to the individual owners. Thus, some investors argue that a trust produces more value for the owners.
References in periodicals archive ?
royalty trusts and upstream exploration and production ("Upstream") energy master limited partnerships ("MLPs").
Income from energy may be derived via royalty trusts and master limited partnerships (MLPs).
This article explains both the investment and tax attributes of royalty trusts.
Royalty trusts provide income-oriented taxpayers with opportunities to invest in natural resources, realize cash flows and participate in the tax benefits afforded this specialized industry.
com/research/44264a/oil_and_gas_canadi) has announced the addition of GlobalData 's new report "Oil and Gas Canadian Royalty Trusts - Financial & Operational Fundamental Analysis and Benchmarking - 2010" to their offering.
com/research/74463d/top_10_oil_gas_u) has announced the addition of GlobalData's new report "Top 10 Oil & Gas US Royalty Trusts - Financial & Operational Fundamental Analysis and Benchmarking - 2010" to their offering.
Harvest is one of Canada's largest conventional oil and natural gas royalty trusts.
Petrofund Energy Trust was founded in 1988 and is one of the first oil and gas royalty trusts in Canada.
The report benchmarks and analyzes top 10 oil & gas US royalty trusts on various operational and financial parameters.
Petrofund Energy Trust was founded in 1988 and was one of the first oil and gas royalty trusts in Canada.
Consequently, we intend to form two additional royalty trusts and plan to sell a portion of each trust.
These investments were comprised of MLPs and MLP affiliates (46%), Canadian Royalty Trusts (26%), Marine Energy Transportation (11%), Coal Companies (4%) and U.