Another Chance to Buy Top Quality Energy Cheap
By Roger S. ConradIssue No.195 . Jul. 30, 2021
Benchmark North American oil prices are back over $70 per barrel. That’s a level few outside of our Energy and Income Advisor investment community expected at the beginning of 2021. Natural gas, meanwhile, has pushed to its highest price since December 2018, well over $4 per million British Thermal Units.
Energy stocks, however, remain largely unloved. In fact, the S&P Energy Index is still 11 percent below its late June high, before the combination of profit-taking, concerns about a new coronavirus wave and OPEC+ output increases took the wind out of its sails.
Energy stocks’ underperformance of the commodities demonstrates once again the lack of investor conviction in the staying power of the sector rally that began in early November 2020. In fact, the S&P Energy Index currently trades almost 20 percent lower than it did in early January 2020 prior to pandemic, when benchmark oil sold for $10 a barrel less than it does now and gas was almost $2 lower.
Energy Commentary >>
-
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
-
Colonial Goes Down: What it Means for Pipeline Politics
By Roger S. Conrad on May. 14, 2021
There may come a day when US transportation is 100 percent electrified and homes are heated with blended hydrogen. But in the here and now, oil and gas pipelines are essential infrastructure. Exhibit A is the havoc wreaked by the successful hack of systems at the Colonial Pipeline this month.
-
Kinder Morgan’s Benefits to Continue Flowing
By Roger S. Conrad on Apr. 23, 2021
Even without a repeat of the company’s Q1 windfall, the benefits to Kinder Morgan Inc.’s (NYSE: KMI) underlying business and balance sheet are likely to continue flowing throughout the rest of 2021 and beyond.
-
Pioneer Natural Resources Acquires DoublePoint
By Elliott H. Gue on Apr. 7, 2021
Shale exploration and production (E&P) giant, Pioneer Natural Resources (NYSE: PXD) announced a deal to acquire privately-held DoublePoint Energy, but the reception on Wall Street has been less than enthusiastic.
-
The Great Texas Power Crisis
By Roger S. Conrad on Feb. 20, 2021
Single digit temperatures, record snowfall, millions of utility customers without service, nearly one-third of the state’s power generating capacity shut down and spiking electricity prices: That’s the damage so far from the Great Texas Power Crisis of 2021, which continues wreak havoc across the Lone Star State.
Subscribers Only >>
-
What We’re Looking for in Q2 Results
By Elliott H. Gue on Jul. 30, 2021
Q2 earnings season is upon us with the first Portfolio reporters already in the books. That means it’s time to lay out what we’re looking for in companies’ numbers and guidance to answer the following: Do underlying businesses of our recommended companies demonstrate sufficient strength to merit fresh money buys, or should we move on to something with a better risk/reward?
-
Endangered Dividends List
By Roger S. Conrad on Jul. 30, 2021
Shell Midstream Partners LP (NYSE: SHLX) is the seventh company in our Energy and Income Advisor coverage universe to cut its dividend in calendar 2021. The company announced a quarterly payout of 30 cents per share for payment August 13, a reduction of -34.8 percent from the previous level of 46 cents.
-
What’s Important from the Portfolio’s First Q2 Reporters
By Elliott H. Gue on Jul. 30, 2021
Stocks featured in this article: Kinder Morgan Inc (NYSE: KMI), Schlumberger Ltd (NYSE: SLB) and Texas Instruments (NYSE: TXN). Three Portfolio companies have released their results and updated guidance so far during Q2 earnings reporting season. Here’s a brief look at the details for this trio. See the Feature article for more on what we’re looking for with the stocks in our coverage universe.
-
Our Mid-Year Oil and Natural Gas Outlook Update
By Elliott H. Gue on Jul. 9, 2021
In the final issue of Energy & Income Advisor for 2020, “Rock Bottom Prices Ready to Rise,” we outlined a constructive view for crude oil prices based on three primary drivers: The ongoing recovery in global demand, OPEC+ willingness to maintain historic production cuts and US shale producer discipline.
-
Portfolio: Getting Ready for Q2 Reports
By Roger S. Conrad on Jul. 9, 2021
Over the next month and a half, all our Model Portfolio and High Yield Energy List members are slated to report Q2 2021 earnings estimates.
Live Chat with
Elliott and Roger on Jul. 29, 2021
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Producers and Drillers
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLPs and Midstream
Our assessment of every energy-related master limited partnership.
International Coverage
Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Experts
-
Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
-
Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor