THIS MONTH’S ISSUE
Energy: Hunting Bargains and Taking a Big Profit
Government data now suggests some power producers swapped in coal when natural gas prices peaked earlier this summer. Now a cooler than normal end to the season is keeping the near-term pressure on, even as geopolitics and global economic worries are holding oil well under $70 a barrel. In the previous decade, any weakness in energy commodity prices was always a threat to take energy stocks down even harder. This time around, however, the SDPR Energy Sector ETF (XLE) is still in the black year to date. So is the Alerian MLP Index (AMLP). And so are most stocks in our three EIA coverage universes highlighted on the EIA website: E&P and Services, MLPs and Midstream and Canada and Australia. That’s the difference between a multi-year energy upcycle such as we’re in now—versus the long-term down-cycle of the previous decade. In fact, it’s even time to harvest gains in one of the Actively Managed Portfolio stocks: Canada-based uranium miner Cameco (TSX: CCO, NYSE: CCJ). Few if any companies in the world are as well set up for a potential US and global nuclear renaissance. Not only is Cameco a critical supplier outside of Russia but it also owns 49 percent...
Live Chat
with Elliott Gue and Roger ConradOn 08/26/2025
Top Takeaways from Q2 Results and Guidance
Q2 is largely in the books for energy companies. So are guidance updates from management. And by this time, the stock market has fully reacted to the results, though largely through the lens of consensus projections for oil and gas prices. Here are some of our takeaways. First, when push came to shove, investors’ perception of where oil and gas prices are going was far more important to stock prices than what companies actually reported. That’s hardly anything new for energy stocks. In fact, that’s usually how it shakes out in sectors where at least near-term results are so affected...
Risk Takers, Don’t Give Up On Variable Rate Dividends
Endangered Dividends List companies are vulnerable for one or more of the following reasons: Cash flow coverage of distributions is inadequate. Elevated debt levels with imminent refinancing needs. Revenue pressure triggered by weakness for at least one key asset. Inability to access the equity market on favorable terms to fund capital spending, forcing management to utilize more internally generated cash flow. Exposure to volatility in commodity margins from either rising or falling prices of raw materials. Aggressive general partners anxious to buy in limited partners’ cash flows at discounted prices. Regulatory reversals. Expiring contracts with little hope for renewals at...
How Our Picks Fared and Our Current Advice
In the past few weeks, all Model Portfolio and High Yield Energy List stocks have reported their Q2 results and updated their guidance for 2025 and beyond. Below, we highlight the results. Note that we’re now banking the profit on Canadian uranium miner Cameco Corp (TSX: CCO, NYSE: CCJ). The stock has been a huge winner for us and its future is bright. But the price has also been extremely volatile historically and we don’t want this gain to get away from us. For model portfolio purposes, we’ll keep the proceeds for now in our favorite cash alternative, the Vanguard...
Meet Our Editors
Elliott H. Gue
Founder and Chief Analyst
Since earning his bachelor’s and master’s degrees from the University of London, Elliott has dedicated himself to learning the ins and outs of this dynamic sector, scouring trade magazines, attending industry conferences, touring facilities and meeting with management teams.
Roger S. Conrad
Founder and Chief Analyst
Roger S. Conrad has successfully advised income investors since the 1980s, with a nationally acclaimed sector specialty in utilities, telecommunications and energy. He’s a managing partner of Capitalist Times author of Power Hungry, independent director of NYSE-listed Miller Howard High Income Equity Fund and contributing editor to Forbes.com.
