Conwest Associates L.P. (CWPS) - A dark pink-sheet limited partnership yielding 15%
I found Conwest Associates L.P. (CWPS) whilst perusing through one of my old Walker's Manuals. It never ceases to amaze me how one can look through these books which are decades old and still find active value.
Information on this limited partnership is scant.
The OTC markets quote page on CWPS reveals virtually nothing other than a contact address and phone number. No market cap, no shares outstanding figure, no business discription, no website or even state of incorporation.
What it does tell us is;
Share price = $29.50 (Spread $28.00 / $32.00)
Dividend per share = $4.42
This gives us an annual yield of 14.98% at the current market price.
The stock is very illiquid with typically only a few hundred shares traded every other day or so.
Thankfully we've got the Walker's Manual to provide us with a little more illumination.
Walker's reports that;
'Conwest Associates, a limited partnership, was formed in 1996 upon the liquidation of The Consolidated Royalty Oil Company. The corporation's interest in ongoing oil and gas production royalties was transferred to the trust for the benefit of its shareholders....The partnership collects and distributes royalty payments. It has no further business. Substantially all of the partnership's revenue comes from oil and gas royalties from three payors.'
Walkers also notes the following;
Number of units outstanding = 606,434 (This would give us a current market cap of $17,889,803)
Frequency of dividends = Quarterly
Earnings per unit for the period 1997-2001 were as follows;
1997 = $1.52 EPU
1998 = $0.78 EPU
1999 = $$1.13 EPU
2000 - $1.78 EPU
2001 = $1.71 EPU
Annual revenues and earnings for the partnership fluctuate from year to year based upon both the level of O&G production and O&G prices.
Given the global push to move away from fossil fuels this is unlikely to be a favourable long-term investment but the short-to-mid-term value seems reasonable. In order to get financials for CWPS I suspect one will need to provide proof of ownership and be added to the share register.
Here's a historical price chart for those of us who like to study them ;
Given the current Shiller P/E for the S&P500 stands at 29.8 for an implied annual return of -1.78%, CWPS might not be such a bad place to park your money whilst you wait for the bear to rear it's head.
Thanks for reading,
Disclaimer: I do not hold fractional ownership in CWPS at the time of writing.
8/5/2019 09:55:58 am
I don't think using running yield is the best way to determine whether this investment is attractive or not because the asset base is depleting. You would really require more information on the remaining assets and its expected life etc. Based on the current yield, if the life remaining is less than 6 years, you would lose money
8/5/2019 07:00:06 pm
8/9/2019 08:19:32 am
Do you not receive financials as a shareholder? Usually, they have to provide these to investors.
8/9/2019 06:07:18 pm
8/11/2019 07:49:23 pm
BTW it seems that reporting OTC stocks have higher returns than dark stocks, if you control for liquidity. See this study on page 3:
8/11/2019 09:21:29 pm
8/13/2019 09:46:55 am
Yes, I also follow Dan Schum. His performance is very impressive. The study above probably explains why. There is a very large illiquidity premium for tiny OTC stocks. Further, there is only little correlation betweent listed and OTC stocks.
9/16/2019 08:13:52 am
Another stock with a record high dividend yield of 16% is Global Trans. However, this is not a tiny stock. I think that the highest yields are currently paid in Russia.
9/16/2019 09:05:02 pm
9/18/2019 06:06:38 pm
Thank you for posting about this rather obscure company. Does anybody have the phone number or email of anybody at the company? I wanted to request financial statements from them, but I can't find the contact info. Thanks.
11/17/2019 07:05:16 am
I'll give you a hint. Its asset is an override on conventional oil wells that aren't located in TX, OK, CA, CO or ND :)
12/26/2019 10:25:50 pm
The asset is the Salt Creek Field in WY, as Ryan alludes to.
12/29/2019 03:54:38 pm
11/18/2020 10:36:17 pm
Well it is at $16 now, are you a buyer?
11/23/2020 09:28:00 am
8/20/2021 11:04:42 pm
Sure, anyone who wants can find me on twitter @chrisvirnig
4/13/2022 11:55:29 pm
After folks passing away I inherited over a thousand shares of CWPS. Very loosely familiar with it. I retired in the "20-teens" as a geologist; over half my career in Prudhoe,though. Any reason why there has been zero price move in over a month?
4/14/2022 02:03:33 am
Hi Tom, as of last September, the SEC no longer allows publishing bid/ask for stocks that don't report financials to the SEC or to OTC markets. Functionally, virtually all brokers have taken this as their signal to disable buying these stocks. The only remaining buyers with the ability to bid are a handful of specialists offering very low prices.
4/14/2022 10:08:47 am
Hey Chris, is the stock that is liquidating HRST?
4/18/2022 09:16:31 pm
Yep, that's the one.
4/14/2022 10:07:42 am
Hi Tom, sorry to hear about your folks. CWPS pays a very good dividend and with current O&G prices, I see them paying out about $4-5 in dividends for this year. So option is also to just hold and real the dividends.
4/18/2022 09:00:56 pm
Thanks, Chris, Sjoerd, for enlightenment. Somewhere in the distant past I knew this was the Salt Creek field. 'Not working in the patch around here for a long time...forgot all about it 'til recently.
4/18/2022 09:22:04 pm
We mean selling via your broker - that will not get you much because of the SEC regulations now. You may be better off negotiating a private sale with an interested party. These too will be seeking a steep discount most likely.
4/18/2022 11:15:50 pm
Thanks, Chris. Hope to speak with broker soon. I live in Casper, Wy, and have learned their are owners of CWPS hidden around here. What about putting a notice in the local paper?
4/19/2022 12:40:02 pm
You can see production of Salt creek here:
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David J. Flood
UK based Investor. I focus
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