Mid-Year Commodity Outlook
Energy was the top-performing sector in the S&P 500 in the first half of 2021 jumping 45.61%, nearly triple the S&P 500’s 15.24% gain over a similar holding period.
That represents the S&P 500 Energy Index’s best showing relative to the S&P 500 in the first half of the year since at least 1989 when the former index was created.
Indeed, energy has smashed all records so far in 2021 for performance relative to the S&P 500, the only comparable example was the group’s 28.51 percentage point outperformance relative to the S&P 500 in the 6 months ended February 2005, during energy (and oil’s) last big commodity super cycle.
Our Mid-Year Oil and Natural Gas Outlook Update
In the final issue of Energy & Income Advisor for 2020, “Rock Bottom Prices Ready to Rise,” we outlined a constructive view for crude oil prices based on three primary drivers: The ongoing recovery in global demand, OPEC+ willingness to maintain historic production cuts and US shale producer discipline.
6/30/21 Energy & Income Advisor Live Chat
Elliott Gue & Roger Conrad will host their monthly Live Chat for Energy & Income Advisor subscribers Wednesday, June 30, 2021 at 2 PM Eastern time. We hope you’ll join us!
5/26/21 Energy & Income Advisor Live Chat
Elliott Gue and Roger Conrad will host their monthly Live Chat for subscribers Wednesday, May 26, 2021 at 2 PM Eastern time. We hope you’ll join us!
Bringing Back the Buyers
So far in 2021, oil and gas stocks are far and away the stock market’s top- performing sector. In fact, capital gains alone for the S&P Energy Sector Index and Alerian MLP Index are more than four times the total return on the S&P 500.
Like the previous two, this issue of Energy and Income Advisor focuses on energy companies’ Q1 results and guidance updates. And what we saw is very much a potential driver for more gains this year in the best in class energy stocks we’ve been recommending.
Not only are companies reporting continuing improvement in industry fundamentals. But their numbers—particularly solid dividend coverage and rising levels of free cash flow after distributions—demonstrate management has adapted business plans and financial strategies to the current stage of the energy cycle.
Q1 Earnings Roundtable Part 3
This is the third and final edition of a series of roundtable Q&A discussions focusing on Q1 results and guidance updates from management teams for 2021 and beyond. For more individual company analysis, see this issue’s Portfolio section.
What We’ve Learned from Early Reporters
This is the second in our series of roundtable Q&A discussions focusing on Q1 results and guidance updates from management teams for 2021 and beyond. For more individual company analysis, see this issue’s Portfolio section.
Portfolio: Ready for the Data Deluge
Crestwood Equity Partners saw lower gathering and processing volumes at its systems in the Powder River Basin, Marcellus, Barnett and Delaware (Permian) shale basins in Q1, versus year ago levels. Nonetheless, EBITDA rose by 9 percent and distributable cash flow surged 15 percent.
4/28/21 Energy & Income Advisor Live Chat
Elliott Gue and Roger Conrad will host their monthly Live Chat for subscribers Wednesday, April 28, 2021 at 2 PM Eastern time. We hope you’ll join us!
Energy Earnings Approaching: Clues to the Cycle
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.
Live Chat with
Elliott and Roger on Jun. 29, 2022
Portfolios & Ratings
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