Energy Earnings Approaching: Clues to the Cycle
By Elliott H. GueIssue No.190 . Apr. 20, 2021
By Q4 2021, total utilization of the largest oil pipelines in the Permian Basin will drop to 57 percent. That’s according to a recent survey from industry research firm Wood MacKenzie.
Some level of spare capacity is necessary for a functioning midstream system, to accommodate demand spikes and the fact that pipelines and related infrastructure must be periodically sidelined for maintenance. The current level, however, is quite elevated, basically for two reasons.
First, based on announced plans of producers for this year, US crude oil output is expected to drop well below the pre-pandemic level of 13 million or so barrels per day. Second, a sizeable amount of new shipping capacity came on line at the end of the previous decade to accommodate expected increases in shale output. That includes natural gas pipelines built to ship associated natural gas produced from oil wells, much of which historically has been flared.
Energy Commentary >>
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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.
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Kinder’s Q3: Charting a US Midstream Recovery
By Roger S. Conrad on Oct. 22, 2020
Despite the worst market conditions for US midstream companies in at least a generation, stability and sustainability were the themes of Kinder’s Q3 results and guidance this week.
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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.
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Portfolio: Ready for the Data Deluge
By Roger S. Conrad on Apr. 20, 2021
Our recommended stocks’ Q4 numbers and guidance were spread out over a couple months. In contrast, their Q1 results will come in as basically a data deluge.
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Feature: The View from the North
By Roger S. Conrad on Apr. 1, 2021
It’s been almost two years since we published a major feature piece on Canada’s energy sector: A Q&A that focused on Australian companies as well. And over that time, much of our coverage universe in both countries of producers, drillers, midstream service providers and even downstream companies have rated sells.
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Endangered Dividends List
By Roger S. Conrad on Apr. 1, 2021
With the pandemic’s impact on demand still unwinding, it’s no wonder most energy companies have opened 2021 with conservative outlooks and cash management strategies. One thing that’s missing from last year, however, is a wave of dividend cuts to reflect it.
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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