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 ?

It's a direct play for individual investors, but most exploration and production companies don't use royalty trusts because there's an uncertain cash flow.

Though royalty trusts trade on public exchanges, they have different rights and obligations and don't function like common stock, he said.

SandRidge sells Permian properties for $14.5 million

Headquartered in Dallas, Texas, the oil and natural gas royalty trust is one of the largest royalty trusts in the US.

M2 EQUITYBITES-December 19, 2017-Permian Basin Royalty Trust authorises USD0.050879 per unit distribution for December

Permian Basin Royalty Trust authorises USD0.050879 per unit distribution for December

The Cushing upstream energy income index is designed to track the performance of publicly traded US royalty trusts and upstream exploration and production energy master limited partnerships.

Black Stone Minerals, L.P., Dorchester Minerals LP, BP Prudhoe Bay Royalty Trust,

Swank Capital, Cushing Asset Management rebalance Cushing upstream energy income index

Income from energy may be derived via royalty trusts and master limited partnerships (MLPs).

Unlike royalty trusts, MLPs operate a business, such as a pipeline, so they bear business risks, such as increased operating costs.

Year-end investment strategies: the end of the year could be the beginning of great portfolio returns

Royalty trusts provide investors with both potential cashflow and tax benefits.

Tax and investment planning with 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.

Tax benefits of royalty trusts: another way of investing in commodities

The bank is successor trustee for five royalty trusts in the energy sector, including Sabine Royalty Trust.

Sabine Royalty Trust declares January monthly cash distribution

M2 EQUITYBITES-January 8, 2016-Sabine Royalty Trust declares January monthly cash distribution