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  • Roger S. Conrad

Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth.

Roger built his reputation with Utility Forecaster, a publication he founded more than 20 years ago that The Hulbert Financial Digest routinely ranked as one of the best investment newsletters. He’s also a sought-after expert on master limited partnerships (MLP) and former Canadian royalty trusts.

In April 2013, Roger reunited with his long-time friend and colleague, Elliott Gue, becoming co-editor of Energy & Income Advisor, a semimonthly online newsletter that’s dedicated to uncovering the most profitable opportunities in the energy sector.

Although the masthead may have changed, readers can count on Roger to deliver the same high-quality analysis and rational assessment of the best dividend-paying utilities, MLPs and dividend-paying Canadian energy names.

Articles

Get out of My Dreams and into My Portfolio

There’s more pain coming for MLPs in the near term, creating a real buying opportunity for investors with a longer time horizon. To help you out, we’ve created a list of Dream Buy Prices for our favorite MLPs in an effort to take advantage of any panic that might ensue if our forecast pans out and oil prices suffer another leg down.

Changes to the International Portfolio

We expect even the hardest-hit International Portfolio holdings to survive the current down-cycle. However, we have concerns about how long this recovery might take; in some instances, we’re be better off taking a loss and re-allocating capital to stocks that stand a better chance of making money over the next few years.

 

Bond Update

In December 2014, we highlighted a basket of undervalued bonds issued primarily by upstream master limited partnerships (MLP) that we thought would rally if they cut their distributions to shore up their balance sheets and focus on paying down debt. We also reasoned that these securities would pop on any relief rally in energy prices. This strategy worked nicely and we took some decent profits off the table. A similar opportunity appears to be in the works.

Pain and Gain

Oil prices will stay lower for longer: We reiterated this outlook in the July 18 issue of Energy & Income Advisor and have maintained this forecast since fall 2014, despite many commentators calling for a V-shaped recovery in prices.

Earlier this year, far too many investors eager to load up on what they regarded as emerging values. And the short-lived relief rally in oil prices and energy-related equities earlier this year gave them confidence that the market had bottomed and emboldened them to plow money into ostensibly bargain-priced stocks.

Although many energy stocks look inexpensive relative to their recent price history, industry fundamentals have changed dramatically; a cheap stock can always get cheaper.

Investors should expect an uptick in bankruptcies among highly leveraged exploration and production companies with marginal assets. For example, investors betting that a takeover offer will rescue their underwater positions in SandRidge Energy (NYSE: SD) likely will be disappointed.

And even shares of best-in-class energy companies will suffer further downside if West Texas Intermediate (WTI) crude oil drops to less than $40 per barrel during the upcoming refinery turnaround season. This downside likely would extend to high-quality midstream names and the major integrated oil companies.

But real opportunities lurk amid all this pain.

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  • Live Chat with

    Elliott and Roger on Jul. 27, 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