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Elliott Gue knows energy. Since earning his bachelor’s and master’s degrees from the University of London, Elliott has dedicated himself to learning the ins and outs of this dynamic sector, scouring trade magazines, attending industry conferences, touring facilities and meeting with management teams.

Elliott Gue’s knowledge of the energy sector and prescient investment calls prompted the official program of the 2008 G-8 Summit in Tokyo to call him “the world’s leading energy strategist.”

He has also appeared on CNBC and Bloomberg TV and has been quoted in a number of major publications, including Barron’s, Forbes and the Washington Post. Elliott Gue’s expertise and track record of success have also made him a sought-after speaker at MoneyShows and events hosted by the Association of Individual Investors.

Elliott Gue also contributed chapters on developments in global energy markets to two books published by the FT Press, The Silk Road to Riches: How You Can Profit by Investing in Asia’s Newfound Prosperity and Rise of the State: Profitable Investing and Geopolitics in the 21st Century.

Prior to founding the Capitalist Times, Elliott Gue shared his expertise and stock-picking abilities with individual investors in two highly regarded research publications, MLP Profits and The Energy Strategist, as well as long-running financial advisory Personal Finance.

In October 2012, Elliott Gue launched the Energy & Income Advisor, a semimonthly online newsletter that’s dedicated to uncovering the most profitable opportunities in the energy sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.

The masthead may have changed, but subscribers can expect Elliott Gue to deliver the same high-quality analysis and rational assessment of investment opportunities in the energy patch.

Articles

Kicking the Tires on Large-Cap MLPs

Over the past several months, we’ve fielded innumerable questions about whether specific master limited partnerships (MLP) will be able to maintain their distributions, with readers focusing on higher-yielding Portfolio holdings and names that we highlighted when we ran The Energy Strategist and MLP Profits. (Roger and I have covered MLPs for almost a decade.)

Our focus has always been on the quality of an MLP’s underlying assets and cash flow—the foundation for long-term wealth building. But in this environment, liquidity and cost of capital can also exert a profound influence on a partnership’s distribution policy, particularly for names with significant capital spending needs.

In this issue, we delve into many of the popular large-cap MLPs to evaluate the pressure points in their underlying businesses if energy prices remain lower for longer and their ability to meet near-term debt maturities and planned capital expenditures.

Taking the MLP Market’s Temperature

Our focus has always been on the quality of an MLP’s underlying assets and cash flow—the foundation for long-term wealth building. But in this environment, liquidity and cost of capital can also exert a profound influence on a partnership’s distribution policy, particularly for names with significant capital spending needs.

Oil Prices and Geopolitics

The financial media tends to exaggerate the influence of geopolitical developments on oil prices, especially to explain daily moves in these commodities. But today’s market hold more in common with the 1990s, when the price of West Texas Intermediate crude oil actually declined at the height of the Gulf War.

Tackling the Big Questions

All the upheaval in global energy markets has many investors scratching their heads about what the future holds for oil and gas prices, what to do with their existing positions in this sector and which groups within the space look attractive at current valuations.

Making sense of the constantly shifting energy landscape becomes all the more challenging in a 24-hour news cycle where history is dead, sensationalism rules the day and the loudest (or most controversial voices) get the most attention–regardless of their track record or the validity of what they’re saying.

Over the past year, we’ve consistently warned that elevated US oil inventories and steady production would squeeze oil prices lower in the fall and winter–a period of seasonally weak demand when many refiners idle capacity for upgrades and maintenance.

Our three-part strategy has also remained consistent: Taking advantage of short-lived recovery rallies to exit risky positions; hedging remaining energy exposure through positions in inverse exchange-traded funds, airlines, cruise operators and convenience stores; and waiting patiently for an opportunity to buy select names at dream prices.

This buying opportunity could be around the corner if oil and gas prices tumble further in coming months. Although oil prices remained relatively flat from 1985 to the mid-1990s, select energy stocks managed to outperform the broader market over this decade–a trend that could repeat itself if the price of West Texas Intermediate remains lower for longer.

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  • Live Chat with

    Elliott and Roger on May. 30, 2017

  • Portfolios & Ratings

    • Model Portfolios

      Balanced portfolios of energy stocks for aggressive and conservative investors.

    • Coverage Universe

      Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.

    • MLP Ratings

      Our assessment of every energy-related master limited partnership.

    • International Coverage Universe

      Roger Conrad’s coverage of more than 70 dividend-paying energy names.

    Experts

    • Roger S. Conrad

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Elliott H. Gue

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Peter Staas

      Managing Editor: Capitalist Times and Energy & Income Advisor