Monday, December 03, 2007

Kudos to Pengrowth Corporation

I have been very critical of some energy industry players and the tactics they used during the time between the “Our Fair Share” royalty review report release and the government’s decision on the review's recommendations.

It appears that some politically targetted hyperbole is still emanating from some companies who are still claiming that the increased royalties are the critical cause of decline in conventional exploration. The corporate capital and exploration spending announcements for 2008 are usually the catalyst and the platform they for the misdirection and somewhat slight of hand presentation. Royalties are a factor but hardly the only or the major factor impacting the conventional oil and gas business in Alberta theses days.

Well I have found a very significant and noteworthy exception to that political gamesmanship and I want to complement Pengrowth Energy Trust (TSX: PGF.UN) (NYSE: PGH), in how it handled its capital spending announcement.

They present a clear, comprehensive and detailed estimate of the impact of increased royalties on its costs, asset evalutration implications and capital spending plans for 2008. No hype or political posturing – just sound and clear analysis.

This is kind of corporate reporting is refreshing, reassuring and timely. It sets a good example. Kudos to Mr. James Kinnear, the Chair, President, CEO and the rest of the Pengrowth Corporation Board and management.