If Only Its Partnerships' Investors Were This Lucky
Petroleum Development Corp's (PETD) stock jumped almost 10% today (9/18/2007). Since 2003 its stock is up nearly ten times. Nice. PETD sponsors oil and gas limited partnerships that offer investors tax write-offs and distributions for an extended period - usually fifteen years or more. The programs are royalty offerings so investors' distributions are their return of and return on investment. Very few of PETD's offerings have returned investor capital to date and to call its deals anemic is unfair to other anemic investments. It is safe to say that investors in PETD stock have done better than any investor in a PETD oil and gas partnership. Remember this: It is better to invest in the entity that is receiving cheap equity financing than the entity that is providing the cheap equity financing.