BP Prudhoe Bay Royalty Trust (BPT), Sabine Royalty Trust (SBR): Royal High-Yield Energy Stocks

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Getting gas in New Mexico

San Juan Basin Royalty Trust (NYSE:SJT) has a 75% royalty interest in the gas and oil found in the New Mexico basin of the same name.But the majority of the interests lie in gas.

The trust has a market cap of about $770 million and a dividend yield of 6.55%. The most recently reported quarter featured a 4% year-over-year growth in average daily gas production and a 57% growth in oil production. Note that the jump still only made for about 168 barrels of oil per day compared to 94,036 Mcf of gas. Average prices rose 3% for gas and fell nearly 10% for oil.

Foolish final thoughts
Royalty trusts offer an interesting opportunity for dividend investors wanting a piece of the energy market. BP Prudhoe Bay Royalty Trust (NYSE:BPT) is the big player but could prove overvalued with trading prices hovering around $85. Sabine Royalty Trust (NYSE:SBR) seems worth its low $51 price with its geographic diversification and over 7% dividend yield. Out of the two “bargain” royalty trusts, Permian Basin Royalty Trust (NYSE:PBT) has more room for growth.

The article 4 Royal High-Yield Energy Stocks originally appeared on Fool.com is written by Brandy Betz.

Brandy Betz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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