Back at the end of July, I wrote about the acquisition of Esprit Energy by Pengrowth Energy Trust (PGH: chart, web).  I also boasted about my impecable forsesight (ok, so I was more lucky than good, but I’ll take it) that PGH shares would fall due to the consolidation of their Class A shares with their Class B shares to form a single unit.

Well, looking at the chart now, it appears that the consolidation effort lowered the price to just under $22 on July 26, and it’s now on it’s way back up. I suspect PGH will re-establish itself around $24.

An August 22 PR from Pengrowth indicates they will continue paying their healthy dividend, and you have till August 31 to take advantage of their current monthly distribution of $0.22 per share.

The combination of Esprit Energy and Pengrowth is still ongoing, and the merger will add 18,350 boe per day to Pengrowth’s production, as well as 71.1 million boe of proved plus probable oil and natural gas reserves, making the largest North American energy royalty trusts even larger.

I like the way the stock bounced back from the share consolidation activity, and it may be time to more more money into the trust.  I like the outlook of Pengrowth, especially considering they’re growing their reserves and production through acquisition. 

The one advantage of other energy trusts over PGH is that trusts like Provident Energy (PVX: chart, web) maintain dividend reinvestment programs (DRIPS) that automatically reinvest dividends, eliminating the commission charges required to do it yourself.

Disclosure:  I currently own no PGH shares, however I do own PVX.

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