Since their inception on Nov. 15, 2013, our MLP Model Portfolios have generated solid returns.
Our Conservative Allocation has delivered an average total return of 29.2 percent over this period, outperforming the 23.1 percent return generated by the Alerian MLP Index.
Meanwhile, Our Aggressive MLP Portfolio has delivered a total return that's on par with the Alerian MLP Index, as the big gains posted by our turnaround picks have been offset by higher-yielding fare that has lagged the market.
In this issue, we assess each holding’s second-quarter results and update our outlook for their future growth prospects.
Investors seeking exposure to potential upside in natural-gas prices often gravitate toward producers in the Marcellus Shale. We prefer undervalued turnaround stories in the utility space that continue to reduce their exposure to the wholesale electricity market.
Far too many investors and commentators mistook last winter's surge in natural-gas prices as the start of a durable rally. But unless last winter marked the onset of a new ice age, the underlying supply and demand trends that prevailed before the polar vortex were always going to win out.
Looking at relative valuations is one strategy for investors to identify inexpensive MLPs whose valuations don't reflect their growth prospects.
The Marcellus Shale is a prolific, gas-producing formation in Pennsylvania and West Virginia, where robust drilling activity has driven huge production growth. But rising output has started to overwhelm local demand, pressuring smaller operators and increasing demand for new takeaway capacity.
Rather than regarding Kinder Morgan Inc.’s consolidation of its associated limited partnerships as a referendum on the MLP structure or the end of an era, investors should regard this move as a fresh start for the midstream giant--an opportunity to reshape itself to meet the demands of the marketplace and competitive environment.
Enterprise Products Partners LP boasts one of the strongest balance sheets and growth prospects in the MLP universe. However, a frothy valuation means that investors should stand aside and wait for a pullback before adding to or establishing a position in the name.
Breitburn Energy Partners LP's recently proposed acquisition of QR Energy LP demonstrates that the search for scale is alive and well among upstream MLPs, as private-equity buyers ratchet up the competition for asset acquisitions.
Imagine a future where US coal-fired power plants continue to generate reliable baseload power, while CO2 collected during their operation fuels the shale oil boom.
NextEra Energy Partners LP--a publicly traded partnership that specializes in renewable energy--has been a slam dunk since its initial public offering on June 26. But at these levels, there are better plays in this industry.
Elliott and Roger on Aug. 28, 2014
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.