With roughly two dozen MLPs (excluding upstream names) offering yields of more than 8 percent, the frequency with which readers asks us about these stocks has increased.
In High-Yield MLPs: The Good, the Bad and the Ugly, we dig into about half these names—we’ll cover the rest in the second February issue—highlighting the ones worth buying and the ones you should sell. Note that a Hold rating means that investors shouldn’t allocate new capital to the name in question. We will continue to monitor Hold-rated names for signs of further deterioration.
We also dig into the tanker market (see Tanker Talk), once a happy hunting ground for investors seeking big yields that eventually turned sour.
The last bull market for oil tankers stretched from the early 2000s to 2007, fueled by insufficient capacity in the global fleet after the phase-out of single-hull vessels and rapidly growing oil demand and China and other emerging markets.
However, overzealous ordering of new capacity, coupled with the onset of the Great Recession, saddled the tanker market with a severe supply overhang that depressed day-rates below the break-even rates for many shipowners.
For the first time in eight years, the supply-demand balance has tightened to the point that this long-neglected space could offer significant near-term upside for aggressive investors.
The price of a mixed barrel of NGLs on the Gulf Coast has plummeted by 45 percent since the end of the third quarter.
Surging production in the Marcellus Shale has also created challenges for producers and has important implications for investors and natural-gas prices in other regions.
Investors still flock to initial public offerings of master limited partnerships.
US propane exports have soared to a record high--and there's more upside to come.
Oil and gas producers worldwide have felt the sting from lower energy prices. Although much of the media attention has focused on the US companies spearheading the shale revolution, their counterparts north of the border arguably have taken a harder hit.
A number of trends suggest that the MLP space is poised for consolidation. Here's how to play it.
Despite management's best efforts, there's more downside in store for Linn Energy.
The prospect of sky-high yields may draw some bargain hunters to hard-hit upstream master limited partnerships; history suggests that there's more downside to come for these names.
Warren Buffett's biggest investment mistake holds an important lesson for investors eyeing value opportunities in the energy sector.
Elliott and Roger on Mar. 3, 2015
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.