As we have for more than a decade, we attended the 2018 MLP & Energy Infrastructure Conference (MEIC) in late May.
This year, we had the occasion to listen to presentations, participate in breakout sessions and one-on-one conversations with senior management at roughly 30 of the largest midstream energy companies in the US.
This week’s issue of Energy & Income Advisor will follow a slightly different format than usual.
During and following the conference, we compared notes and discussed some of our key questions and takeaways from MEIC.
Many of these discussions were recorded and, in this issue, we present an edited transcript of our conversations surrounding 7 key talking points: General takeaways from MEIC, MLP to corporation conversions, the FERC ruling on cost of service rates, US energy infrastructure bottlenecks, our picks (recommendations) coming out of MEIC, our main pans (stocks to avoid).
Over the past two weeks the big story in energy markets has been oil price differentials, which was a major theme at this year's MLP and Energy Infrastructure Conference (MEIC) conference. However, scratch beneath the surface and there’s a lot more going on.
You can learn a lot about an industry by listening to earnings conference calls, digging into the quarterly numbers and financial results, but there's no substitute for boots-on-the-ground research.
The potential for OPEC to scale back its production agreement doesn't spell doom for oil prices.
Automakers and battery manufacturers aren't the best options for investors seeking to profit from electric vehicles.
The recent rally in oil prices has helped the exploration and production companies on our Focus List to catch up with the commodity. However, we continue to find favorable risk-reward propositions in the midstream space as we prepare for the MLP Association's annual investor conference.
By on Jun. 15, 2018
General Takeaways from the MLP & Energy Infrastructure Conference (MEIC) Roger Conrad (RC): The first thing I think both of us noticed was how much smaller this year’s event was than last year’s, and certainly than it was four years ago in Jacksonville. That was really the peak of the boom for MLPs and I remember how uncomfortable you and I were then about how popular the sector was.
When I analyze any industry group I like to start by attempting to answer one simple question: What are investors looking for? In other words, it’s crucial to understand which quantitative metrics and/or stock characteristics drive stock market returns over time. Answer that one question and you’ll be well-positioned to select stocks that outperform their peers and the broader market.
Simplification transactions—where the general partner and limited partnership merge to eliminate incentive distribution rights—have become all the rage among master limited partnerships (MLP). As part of our efforts to make Energy & Income Advisor more user-friendly, we’ve undertaken a simplification push of our own, consolidating the three model portfolios into a single, actively managed strategy that includes specific position sizes.
Solid first-quarter results prompted us to increase our buy targets for two of the names on our Focus List. Although the midstream and upstream names on our Focus List have outperformed, we have decided to part ways with one laggard.
First-quarter earnings season has been good to the names on our Focus List.
Elliott and Roger on Jun. 28, 2018
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.