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Focus on MLPs: Still a Table Pounding Buy for the Patient

By  Elliott H. Gue
Issue No.138 . Dec. 2, 2018

Six months ago, we returned from the 2018 MLP & Energy Infrastructure Conference with a full head of steam. Our most important takeaway: MLPs’ fundamentals and technicals were improving at the same time investor sentiment appeared to have sunk to a new low.

Our conclusion was we had a table pounding buying opportunity on our hands for the best MLPs. We highlighted the specifics in our June 15 roundtable “Picks, Pans and Takeways.”

Since then, MLPs staged a mild summer rally, only to give it all up and more in the autumn selloff following oil prices lower. But the underlying business fundamentals have continued to improve, especially for the sector’s best in class.

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  • Focus on MLPs: Questions and Answers

    By Roger S. Conrad on Dec. 2, 2018

    How have MLPs recommended in Energy and Income Advisor fared year-to-date? Is there any reason to expect a better performance in 2019? The table “EIA Energy MLP Performance” highlights master limited partnerships recommended in three places: Our Actively Managed Portfolio, the Focus List and the “legacy” portfolios that we continue to track on the EIA website.

  • Endangered Dividends List

    By Roger S. Conrad on Dec. 2, 2018

    The latest two EDL members to announce dividend reductions are Bonterra Energy (TSX: BNE, OTC: BNEFF) and Sanchez Midstream Partners (NYSE: SNMP). Canadian oil and gas producer Bonterra is slashing its monthly payout from 10 cents Canadian to just a penny a share. That’s a direct consequence of a decline in its realized selling price for oil to just CAD21.50 per barrel from CAD77.20 since the end of the third quarter.

  • Round Table: Our Take on Q3 Earnings So Far

    By Roger S. Conrad on Nov. 7, 2018

    Are you concerned by the large number of energy company dividend cuts we seem to be seeing this earnings season? - Roger Conrad: Let’s get one thing straight right up front. There’s no such thing as a “good” dividend cut. When a company reduces its payout, investors lose income and share prices typically fall to reflect the lower amount. That’s why we want to avoid stocks at risk of dividend cuts and it’s the reason we have an Endangered Dividends List.

  • Endangered Dividends List

    By Roger S. Conrad on Nov. 7, 2018

    Buckeye Partners (NYSE: BPL) is cutting its quarterly distribution for the first time in its 30-year plus history, from $1.2625 to 75 cents per unit. That’s a -40.6 percent reduction starting with this month’s payment, an amount right in line with our expectation.

  • Roundtable: Energy and the Stock Market

    By Elliott H. Gue on Oct. 25, 2018

    Roger Conrad: A month ago, we talked about the super majors as really a breed apart in the energy business, particularly for anything to do with long-term business resiliency. A lot of that has to do with balance sheets. I mean there are plenty of sovereign governments that can’t match the Aaa credit rating ExxonMobil (NYSE: XOM) draws from Moody’s.
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    Elliott and Roger on Nov. 29, 2018

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    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