The Canadian government has granted special tax status to these companies to encourage oil and gas exploration in Canada. They are something like Real Estate Investment Trusts in that they must distribute a certain percentage of their income each year. Investors usually get monthly distribution checks. They are not taxed at the corporate level so they avoid double taxation. Income from the trusts is taxed in the US like regular dividends. Please consult your tax attorney to confirm my understanding.
Trusts of this nature must grow or their distributions will eventually liquidate the company. The companies that have their own exploration arms can grow organically. Or, the company can grow through acquisitions. Investors will want to understand how their trusts are growing.
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