Energy: Ready, Set, Buy!
By Roger S. ConradIssue No.185 . Jan. 18, 2021
Since our previous issue of Energy and Income Advisor, oil prices have ticked back over $50 a barrel. And the combination of last year’s literal industry-wide investment freeze with energy demand rising faster than expected means they’ll stay there in 2021, with a possible run into the 60s at some point.
How much of what we’ve already seen for energy prices is priced into sector stocks? The last time oil was firmly over $50, back in February 2020, Enterprise Products Partners (NYSE: EPD) traded roughly one-third higher than it does now. The same was true for fellow Model Portfolio holding ExxonMobil (NYSE: XOM).
So was high quality midstream Magellan Midstream Partners (NYSE: MMP). So were leading oilfield services company Schlumberger Ltd (NYSE: SLB) and Concho Resources (NYSE: CXO), which fetched what’s since become a high premium takeover bid from ConocoPhillips (NYSE: COP).
Energy Commentary >>
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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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Energy M&A Heats Up
By Roger S. Conrad on Jul. 20, 2020
What do super major oil company Chevron Corp (NYSE: CVX) and leading US rooftop solar installer Sunrun Inc (NSDQ: RUN) have in common? They’re on the leading edge of a building wave of energy mergers and acquisitions.
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Don’t Sweat DAPL: There’s Still Life in Midstream Stocks
By Roger S. Conrad on Jul. 8, 2020
After a series of rulings rejecting federal permits for new pipelines, the US District Court for D.C. actually threw out one for an already operating one. The result: An order to immediately shut down the $3.8 billion Dakota Access Pipeline, which transports oil from the Bakken shale of the upper Midwest.
Subscribers Only >>
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Feature Roundtable: A Closer Look at Energy Policy in 2021
By Elliott H. Gue on Jan. 18, 2021
In the previous issue of Energy and Income Advisor, we stated our view that prospective changes in energy policy in 2021 would not be catastrophic for the oil and gas industry, regardless of who won the Georgia runoff elections for the US Senate.
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Endangered Dividends List
By Roger S. Conrad on Jan. 18, 2021
There were no dividend cuts announced in our coverage universes since the previous issue of Energy and Income Advisor.
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Portfolio: Deep Dive on Strategy
By Elliott H. Gue on Jan. 18, 2021
Energy is arguably the most deeply cyclical industry in the S&P 500 and the downcycle that started in 2014 has been the deepest downturn the industry has faced since at least the second half of the 1980’s.
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Feature Roundtable: Our Outlook for 2021
By Elliott H. Gue on Dec. 31, 2020
What development from 2020 will have the greatest impact on energy returns in 2021? The big oil collapse in Q2 2020 is the key development this year that’s completely reset the supply equation for 2021 and beyond.
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Endangered Dividends List
By Roger S. Conrad on Dec. 31, 2020
There were no dividend cuts announced in our coverage universes since the previous issue of Energy and Income Advisor. That’s because declaration dates for winter payouts aren’t until next month. But there is growing reason to expect far fewer reductions this year than in 2020, or in fact any year since oil prices first broke under $100 per barrel for the cycle back in mid-2014.
Live Chat with
Elliott and Roger on Jan. 29, 2021
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
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