As an energy-oriented value investor, I’m always on the prowl for interesting companies in this space, particularly those related to oil and natural gas. During my research, I found one such company: Pacific Coast Oil Trust (ROYT), a trust whose business doesn’t involve the exploration for and production of oil and gas, but instead focuses solely on collecting payments due to it by Pacific Coast Energy Company, a privately-held LLC that acquires mostly developed properties in California and allocates capital to them in order to extract oil and gas.
In evaluating ROYT, I