Rock Bottom Prices Ready to Rise
The year just passed will go down as one of the most turbulent for energy investors. There were dramatic ups and downs for prices of the raw commodities, including a brief but for some devastating period of negative benchmark oil prices.
Share prices up and down the oil and gas value chain dramatically underperformed the broad stock market, even while anything smelling of renewable energy was bid to the sky. There were also more sector dividend cuts than any period in history, in large part because the year was a final reckoning for many of the companies launched during the IPO boom of the previous decade.
It was a year when many investors threw in the towel for oil and gas entirely. In fact, tax selling is likely responsible for stalling what had been a respectable rally from early November.
Feature Roundtable: Our Outlook for 2021
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.
12/30/20 Energy & Income Advisor Live Chat
Elliott Gue and Roger Conrad will host their monthly Live Chat for subscribers Wednesday, Dec. 30, 2020 at 2 PM Eastern time. We hope you’ll join us!
An Early Look at Midstream for 2021
The past two years have been a story of resilience for North America’s premier midstream companies. But if preliminary guidance from best in class Portfolio companies is any indication, 2021 is setting up as one of unfolding sector recovery.
Portfolio: The Recovery Continues
Last issue, we added two oil and gas producers to our Model Portfolio, EOG Resources (NYSE: EOG) and Pioneer Natural Resources (NYSE: PXD). Since then, they’re up more than 10 and 12 percent, respectively.
Fresh Money Buys for Increasingly Bullish Times
Since the end of October, North American benchmark oil prices are up by nearly $10 a barrel, a percentage gain of 26 percent. And for once, energy stocks performed even better, with the S&P 500 Energy Index returning nearly 30 percent.
The Portfolio section highlights winners in our Model Portfolio and High Yield Energy List during a November when even the weakest scored percentage gains of close to 20 percent. And there’s every indication of a lot more to come in a sector we believe is shaping up for one of the fastest returns to favor in memory.
We’re taking advantage by adding some fresh picks to the Model Portfolio. See the Feature article for more on these stocks to buy now.
New Picks for Big Gains
One of the simplest ways to monitor the health of the global oil market is to watch the shape of the oil futures curve. Since the end of October, we’ve seen one of the fastest and most dramatic shifts in the futures curve in the past 20 years.
11/30/20 Energy & Income Advisor Live Chat
Elliott Gue and Roger Conrad will host their monthly Live Chat for subscribers Monday, Nov. 30, 2020 at 2 PM Eastern time. We hope you’ll join us!
Feature: The Rest of the Results
In this issue of EIA, we focus our attention on the Model Portfolio and High Yield Energy List companies reporting Q3 results since our previous issue and that we did not review in the October 30 Alert “Raising Crestwood and ONEOK, Sticking with Energy Transfer.”
Portfolio: An Update on Strategy
Barring a recovery rally of unprecedented magnitude, it seems certain 2020 will go down as one of the worst years ever for oil and gas stocks, up and down the energy value chain.
Fallout from the pandemic temporarily knocked the bottom out of demand for refined products and fuels and turned a strategic retreat by producers into a full-on rout. And wild campaign rhetoric alleging an impending ban on hydraulic fracturing certainly didn’t help investors’ fear factor.
Live Chat with
Elliott and Roger on Jul. 27, 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