In this issue, we tackle two of the topics about which readers frequently ask: our outlook for crude-oil prices and our assessment of the major integrated oil company, including which ones are our favorites.
The recent collapse in the price of Brent and West Texas Intermediate (WTI) crude oil has investors running scared and trying to figure out exactly what’s going on.
We dig into the complex dynamics driving this trend, from surging North American output and declining US imports of crude to trends in the futures markets and regional oil imports, and explain our near-term forecast for WTI and Brent.
When casual investors think of the energy stocks, one of the Seven Sisters—BP (NYSE: BP) NYSE: BP), Chevron Corp (NYSE: CVX), Eni (NYSE: E), Exxon Mobil Corp (NYSE: XOM), Royal Dutch Shell (NYSE: RDS B), Statoil (NYSE: STO) and Total (NYSE: TOT)—likely springs to mind.
But these Western energy giants have come in for a great deal of criticism over the past several years, as investors lose patience with the industry’s massive capital investments and limited production growth.
We dig into each of these names, assess their growth prospects, potential to unlock value for shareholders and highlight our favorites.
With winter just around the corner, many investors and market observers wonder whether we’ll witness another spike in Midwest propane prices.
Whereas SeaDrill’s stock has tumbled by 15.2 percent over the past year, SeaDrill Partners’ units have delivered a total return of 15.6 percent.
Surging production in the Permian Basin has exceeded the pace of pipeline development, depressing the price of West Texas Intermediate (WTI) and West Texas Sour (WTS) crude oils at the nearby hub in Midland, Texas.
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.
The stakes are high for the masters of midstream, particularly in the Northeast where surging output of natural gas has overwhelmed local demand and existing takeaway capacity, depressing the prices at Pennsylvania’s Leidy Hub relative to the Henry Hub in Louisiana.
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.
Elliott and Roger on Oct. 2, 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.