Endangered Dividends List
Four more Energy and Income Advisor coverage universe companies have announced dividend cuts since our July 22 issue went to post. That’s actually less so far than we expected going into this season for Q2 earnings reporting and dividend declarations, though there’s still risk of multiple high profile cuts in the next few weeks.
Portfolio: Earnings and Guidance
Roughly one-third of the Model Portfolio and High Yield Energy List companies have now announced their Q2 results and updated guidance. As expected, the numbers weren’t pretty. And guidance wasn’t everything we could have hoped for either, with most companies expressing a generally cautious outlook.
Energy’s Best are Often its Biggest
This week, frac sand MLP-turned-C-Corp Hi-Crush Inc (OTC: HCRSQ) opened a new chapter in its long slide, filing for Chapter 11 bankruptcy.
It’s been literally years since this company was an Energy and Income Advisor recommendation—or since we’ve rated shares anything but a strong sell. But Hi-Crush’s now total demise does offer us several key lessons, as we build positions in best in class companies to capitalize on an energy sector recovery.
First, this bankruptcy is yet another demonstration that C-Corp conversions of MLPs are no antidote to financial and operating pressures.
Endangered Dividends List
There have been zero dividend cuts in our Energy and Income Advisor coverage universes since the June 18 issue. That could change quickly over the next several weeks, as the 45 companies in the Endangered Dividends List declare their dividends for the summer season.
Energy M&A Heats Up
What do super major oil company Chevron Corp (NYSE: CVX) and leading US rooftop solar installer Sunrun Inc (NSDQ: RUN) have in common? They’re on the leading edge of a building wave of energy mergers and acquisitions.
Don’t Sweat DAPL: There’s Still Life in Midstream Stocks
After a series of rulings rejecting federal permits for new pipelines, the US District Court for D.C. actually threw out one for an already operating one. The result: An order to immediately shut down the $3.8 billion Dakota Access Pipeline, which transports oil from the Bakken shale of the upper Midwest.
Endangered Dividends List
There have been zero dividend cuts in our Energy and Income Advisor coverage universes since the June 18 issue. That’s a merciful break in what has been non-stop action since early March. But it’s no reason to be complacent about dividend risk in the energy sector.
Q&A: What’s Ahead for Midstream and MLPs
The outlook for our recommendations and coverage universe in answers to five key questions.
Portfolio: Earnings and Guidance
Q2 earnings releases for Model Portfolio and High Yield Energy List recommendations are coming up fast. Here are expected and confirmed dates for announcements and guidance calls. We will update between issues if news requires actions, primarily with Alerts.
Dumping the Weak, Adding to the Strong
The rally in energy stocks from mid-March has taken a breather. On June 8, the S&P 500 Energy Sector Index reached its highest point since early February, up 97 percent from its March 18 low. A few days later, it was down more than 17 percent.
Other indexes have followed the same pattern. Super majors-focused NYSE Arca Oil Index (NYSE: XOI) returned better than 105 percent from mid-March to June 8, only to give back roughly 17 percent. And the midstream-heavy JP Morgan Alerian MLP Index ETN (NYSE: AMJ) retreated 16 percent, after running higher by 152 percent.
Live Chat with
Elliott and Roger on Jul. 20, 2020
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
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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