• Twitter
Generic selectors
Exact matches only
Search in title
Search in content
Search in posts
Search in pages
  • Roger S. Conrad

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

Oilfield Services, Oil and Value

Just under half the energy stocks in the S&P 500 have reported Q3 2019 results so far including Schlumberger and Halliburton, the world’s two diversified services majors.

What’s emerged is a clear divergence in performance – growth in international markets and continued pressure on profit margins and growth in North American shale. The international spending upturn is now well underway, which is particularly encouraging when you consider the historic drop in international oilfield spending between 2014 and 2018.

And despite the shale services bust in Q3, we’re seeing some reasons for optimism in North America including industry capacity rationalizations and a change in the way producers contract for services.

In this issue, we’ll take a deeper dive into the services business and some of the comments from both Schlumberger and Halliburton on their Q3 2019 conference calls. We’ll also examine one of the most powerful but overlooked potential upside catalysts for energy stocks in the year ahead.

Diving Deep into Oilfield Services – Getting Stronger Overseas

One of the most important lessons to learn about earnings season is that the market’s reaction to the news can be more important than the news itself.

In other words, if a company reports weak earnings and issues cautious guidance for the quarter ahead; yet, the stock rallies, that’s a sign that market expectations were already low, and the bad news was priced into the stock before it released earnings results.

MLP Conversions and Rollup Q&A

Is the Hess Midstream Partners (NYSE: HESM) transaction a good deal for unitholders, or should we take this opportunity to cut and run before there’s real damage? We think the positives outweigh the negatives of this deal. With Hess Midstream converting to a corporation, those who hold it outside of an IRA will probably pay higher taxes on distributions going forward. 

Oil Prices Back Off But We’re Not

It’s been roughly two weeks since the September 14 attacks on Saudi oilfields took about 5 percent of global oil production temporarily offline. And the North American benchmark price per barrel has already retreated to its long-held mid-50s trading range.

This is the clearest indication yet of how the rise of US shale production has dramatically shifted the global oil market. And it’s why, as we pointed out last issue, energy investors need to rise above the noise of geopolitics.

When it comes to energy prices that means focusing on supply and demand. And it’s why energy companies we own must be able to prosper in the same lower-for-longer price environment that’s existed since mid-decade.

Energy Strategy Roundtable

Talking Point #1: What’s the risk of recession and a demand led collapse in oil prices over the next 12 months?

EG: I continue to believe fears of recession are overblown in the US. In fact, I’m seeing some tentative signs the US economy is stabilizing and we may see some improvement in data over the next few months.

Sector Fear Takes a Breather, Quality Still Key

The fear factor appears to have lessened a bit since our previous Energy and Income Advisor issue. But with all eyes still on the global economy, these still aren’t especially good times for energy stocks, many of which are pricing in a big future drop in oil.

The Alerian MLP Infrastructure Index, for example, is lower by more than 10 percent in barely a month. That’s despite the generally robust second quarter results of most index components, as well as multiple dividend increases.

For readers interested in betting on a rebound through mutual funds or ETFs, we suggest taking a look at closed-end funds like Kayne Anderson MLP Midstream (NYSE: KYN). Not only are its top holdings arguably over-discounted to otherwise solid prospects but it trades at a discount to net asset value of more than 10 percent. That’s double leverage to a recovery in MLPs, though there’s risk as well: The fund cut its monthly payout by 20 percent at the start of 2019.

Subscribe today to receive a sample issue of EIA
  • Live Chat with

    Elliott and Roger on Oct. 29, 2019

  • 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

    • Elliott H. Gue

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

    • Roger S. Conrad

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