For the first time in four decades, inflation is a key risk in the US and other developed economies.
Indeed, according to the University of Michigan survey, US consumers expect annualized inflation of close to 3% over the long haul, a full 1% above the Fed’s 2% target level.
Meanwhile, more than 50% of small businesses in the National Federation of Independent Business (NFIB) survey reported that job openings were hard to fill in the month of August 2021, the highest reading in the history of this survey dating back to 1973.
Rising labor costs prompted FedEx (NYSE: FDX) to slash guidance in September while expectations for Q3 2021 US economic growth have plummeted since August as many fret that rising prices are beginning to pinch the consumer.
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
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.
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.
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.
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.
Earlier this month, the Petrol Retailers Association (PRA), an organization representing almost 70% of gasoline stations in the United Kingdom, reported that two-thirds of the nation’s stations were out of petrol (called gasoline on this side of the Atlantic).
There have been no dividend cuts since the previous issue of EIA. There are also no additions to the list in advance of the release of Q3 results, which for our coverage universe should mostly be reported in the next three to five weeks.
Considering our sanguine outlook for commodity prices, we’re updating our buy under target prices for several stocks in our portfolio universe including raising our buy under price for EOG Resources to $90, Pioneer Natural Resources to $175 and Occidental Petroleum to $32.
Next month marks the 15-year anniversary of the so-called “Halloween Massacre”—when Canada’s then Prime Minister Stephen Harper reversed a pledge not to tax income trusts, and brought the investment boom to an abrupt end.
There have been no dividend cuts since the previous issue of EIA, leaving the year-to-date total at nine. We are, however, making several changes to the Endangered Dividends List to reflect the impact of Q2 earnings, guidance updates and market developments.
Elliott and Roger on Oct. 28, 2021
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