No. of Recommendations: 3
PVX announced Q4 and annual results last week.

CEO hit the nail on the head with a couple of comments
"2008 was an exceptional year for Provident, despite a very challenging fourth quarter." said Provident's President and Chief Executive Officer, Tom Buchanan. "Provident generated record funds flow from operations of $655 million and achieved a payout ratio of 58 percent. Provident reduced its bank debt by $419 million last year, strengthening the balance sheet at a time when financial flexibility is essential."

Q4 is really when things came undone. A Q4 payout of 95% is part of an annual payout of 58%. Wow! Did commodity prices fall apart on them. I understand why I still held onto this Canroy's units through Sept/Oct 2008. The Canroy was still executing in the face of terrible commodity prices.

- The sale of the US Operations was timely and definitely paid off for them. The reduced debt-load should be helpful in navigating through difficult credit market conditions.

- Canroy is working really hard on developing new area- Pekisko. A lot of their 2009 Capital spending appears to be going to the area

- RLI about the same as last year (adjusted for loss of US Operations) at 10 years.

- Production by each major producing area is a little bothersome, only
2 of 7 areas had increased production. On the other hand, since it is
a quarterly comparison, PVX may have just cut back daily production as commodity prices came apart.

- Is monthly (Canadian) 6c/unit stable? Oil at $45/bbl might be okay, but NG at $4/MMBTU has to hurt, especially with Midstream margins


AAV might be worth reviewing too
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