Energy Stocks: Earnings Power and M&A Mean it’s Still a Time to Build Positions
By Roger S. ConradIssue No.210 . Aug. 22, 2022
Phillips 66 (NYSE: PSX) is offering $34.75 per unit in cash for DCP Midstream (NYSE: DCP) it doesn’t already own. That follows Phillips’ swap of crude oil assets for natural gas related infrastructure owned by Canadian midstream company Enbridge Inc (TSX: ENB, NYSE: ENB).
For both companies, this deal making is about increasing scale and therefore efficiency in areas they’ve chosen to focus on. For Phillips, consolidating DCP follows the pattern of its 2021 buyout of Phillips 66 Partners, reducing cost of capital to fund further expansion. And S&P has now upgraded DCP Midstream’s credit rating to BBB+ from BBB- in anticipation of full asset integration.
Energy Commentary >>
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Elliott Gue On MarketWrap with Moe Ansari
By Elliott H. Gue on Aug. 5, 2022
I recently sat down with MarketWrap's Moe Ansari to discuss current investment trends in the energy sector.
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US/EU Natural Gas Pact and Two New Portfolio Additions
By Elliott H. Gue on Mar. 31, 2022
You’ve probably seen the headlines about a deal between the US and European Union aimed at reducing Europe’s dependence on Russian fossil fuels.
One centerpiece of this agreement, unveiled on March 25th, is a US promise to work with international partners to ensure additional liquefied natural gas (LNG) volumes of 15 billion cubic meters (BCM) of natural gas for 2022 with “expected increases going forward.”
So, does this mean a surge in US natural gas prices and increased demand for US liquefied natural gas exports?
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Talking China: There’s a Big Opportunity in Energy
By Roger S. Conrad on Mar. 3, 2022
The eyes of the world are on fallout from Russia’s invasion of Ukraine. But energy investors would do well to instead check out my key takeaways from this week’s “U.S.-China Regional Dialogue Series: Forum on Innovation in Energy, the Environment and Sustainability.”
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What Kinder’s Q3 Says About Midstream’s High Yields
By Roger S. Conrad on Oct. 21, 2021
Despite some setbacks, Kinder Morgan Inc. (NYSE: KMI) has adapted to where we are right now in the energy price cycle. But effective participation still requires discipline.
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Midstream M&A’s Train Picks Up Steam
By Roger S. Conrad on Jun. 4, 2021
Too many small owners lacking critical scale and unprecedented roadblocks to new energy pipeline infrastructure: That’s what was at the core of the unprecedented wave of US oil and gas midstream dividend cuts and bankruptcies of the past few years. Now those same forces are spawning something considerably more positive for investors
Subscribers Only >>
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Feature Article: Our Post Q2 Earnings Roundtable
By Roger S. Conrad on Aug. 22, 2022
Here are our answers to five key questions facing energy investors as summer 2022 winds up. We hope you enjoy it.
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Portfolio: Highlights from Q2 Earnings and Guidance
By Roger S. Conrad on Aug. 22, 2022
All of our recommended Actively Managed Portfolio and High Yield Energy List members have now reported calendar Q2 numbers and updated guidance. Here are the highlights on their generally solid performance and our current advice for each position.
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Endangered Dividends List
By Roger S. Conrad on Aug. 21, 2022
We’re still waiting for our first Energy and Income Advisor coverage universe dividend cut for 2022. That compares starkly to the 93 companies that reduced payouts at least once during 2020 and 2021.
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Mid-Year Commodity Update
By Elliott H. Gue on Jul. 20, 2022
The dollar, pipeline regulations, Biden, the mid-terms, Saudi Arabia, Big Oil’s “greed,” and the war in Ukraine…
The mainstream and financial media’s efforts to explain the wild swings in crude oil so far this year are apt to touch on all these emotional hot-button issues while largely ignoring the fundamentals that truly drive commodity cycles: Supply, demand, and price.
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Endangered Dividends List
By Roger S. Conrad on Jul. 20, 2022
We’re still waiting for our first Energy and Income Advisor coverage universe dividend cut for 2022. That compares starkly to the 93 companies that reduced payouts at least once during 2020 and 2021.
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Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor