Energy Earnings: Few Surprises But Good Ones
By Roger S. ConradIssue No.191 . May. 5, 2021
Last year, energy investors faced a perfect storm. Demand for refined products collapsed in the face of measures to contain an historic pandemic, at the same time producers abruptly began to prioritize free cash flow over output.
The result was a business meltdown for all but a handful of best in class companies. And even they were forced to dramatically shift strategy, as plunging share prices and pressured credit ratings all but cut them off from capital markets on reasonable terms.
This year is shaping up as a far different animal. Even sector leaders like Portfolio members Enterprise Products Partners (NYSE: EPD), Pioneer Natural Resources (NYSE: PXD) and Schlumberger Ltd (NYSE: SLB) still haven’t made it back to pre-pandemic levels. But we have seen some very impressive gains across the board off the late October 2020 lows. And that price momentum has accelerated so far in 2021.
Energy Commentary >>
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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.
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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.
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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.
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Pipeline Politics: We’re Guardedly Optimistic
By Roger S. Conrad on Dec. 16, 2020
This week, the incoming Biden administration filled out much of its prospective energy and environment team with pragmatists,signaling a focus on incremental measures rather than the dramatic and disruptive.
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Why Biden’s Heat Won’t Melt Midstream
By Roger S. Conrad on Nov. 19, 2020
In investing, economics always wins over politics. That’s worth remembering at a time when energy midstream and pipeline companies are unloved by investors, and many advisors and media personalities forecast sector doomsday.
Subscribers Only >>
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What We’ve Learned from Early Reporters
By Elliott H. Gue on May. 5, 2021
This is the second in our series of roundtable Q&A discussions focusing on Q1 results and guidance updates from management teams for 2021 and beyond. For more individual company analysis, see this issue’s Portfolio section.
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Endangered Dividends List
By Roger S. Conrad on May. 5, 2021
Our outlook remains bullish for energy prices and sector stocks. That means we still expect to see a declining number of names on the Endangered Dividends List going forward, with Q1 results the next opportunity for companies to drop off.
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Portfolio: Ready for the Data Deluge
By Elliott H. Gue on May. 5, 2021
Crestwood Equity Partners saw lower gathering and processing volumes at its systems in the Powder River Basin, Marcellus, Barnett and Delaware (Permian) shale basins in Q1, versus year ago levels. Nonetheless, EBITDA rose by 9 percent and distributable cash flow surged 15 percent.
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What We Expect in Q1 Earnings and What We’ll Learn
By Elliott H. Gue on Apr. 20, 2021
Over the next few weeks, the energy sector will report Q1 results and management teams will update guidance for 2021 and beyond. At stake is whether individual companies are holding up at this stage of the energy price cycle.
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Endangered Dividends List
By Roger S. Conrad on Apr. 20, 2021
Our outlook remains bullish for energy prices and sector stocks. That means we still expect to see a declining number of names on the Endangered Dividends List going forward, with Q1 results the next opportunity for companies to drop off.
Live Chat with
Elliott and Roger on May. 26, 2021
Portfolios & Ratings
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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
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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