Stay Patient as Energy Values Appear
By Elliott H. GueIssue No.209 . Jul. 20, 2022
So far this month, Berkshire Hathaway (NYSE: BRK/B) has announced purchases of 27 million and 12 million shares of long-time EIA recommendation Occidental Petroleum (NYSE: OXY). As a result, the giant investment and insurance firm now owns 18.7 percent of the oil and gas producer—that’s nearly as much as the next two largest holders combined.
Why load up on a still highly leveraged commodity producer just as an inflation-focused Federal Reserve appears to be tipping the US economy into recession? We suspect it’s the same basic reason for all of Mr. Buffett’s investments since he became Berkshire’s Chairman and CEO way back in 1970: He sees truly massive free cash flows in Occidental’s future.
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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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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Portfolio: Getting Ready for Q2 Earnings and Guidance
By Roger S. Conrad on Jul. 20, 2022
Benchmark North American oil prices began Q2 2022 around $100 a barrel. They closed at slightly less than $106, after trading as high as $120 plus and as low as $93. That compares with a mid-60s to mid-70s price in the year earlier Q2.
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Russia and the Next Phase of the Energy Super Cycle
By Elliott H. Gue on Jun. 17, 2022
We hosted a live 30-minute presentation for MoneyShow, highlighting our big picture outlook on a range of topics as well as top recommendations.
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Portfolio: Another Look at Dream Buys
By Elliott H. Gue on Jun. 17, 2022
The prices you see in the “Rating” column of our Portfolio and coverage universe tables are highest recommended entry points. We base them on a combination of business quality and valuation factors. And the result is a price where—if purchased at or below—a stock should generate an average annual total return of at least 10 percent, if held 3 to 5 years.
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Elliott and Roger on Jul. 27, 2022
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Our assessment of every energy-related master limited partnership.
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Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Experts
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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