Endangered Dividends List
We’re still waiting for our first Energy and Income Advisor coverage universe dividend cut for 2022. That compares starkly to the 93 companies that reduced payouts at least once during 2020 and 2021.
Portfolio: Getting Ready for Q2 Earnings and Guidance
Benchmark North American oil prices began Q2 2022 around $100 a barrel. They closed at slightly less than $106, after trading as high as $120 plus and as low as $93. That compares with a mid-60s to mid-70s price in the year earlier Q2.
A Recession Won’t Repeal the Energy Cycle
Let’s be clear. Neither oil and gas prices nor energy stocks will be immune if the global economy slides into recession later this year. And damage to prices would be compounded if Russian, Iranian and/or Venezuelan oil re-enters the market in a meaningful way.
But that said, what the Federal Reserve and other central banks are attempting now to quell inflation will not end the energy up-cycle that began in spring 2020. Neither would a return to the market of supply from what are currently pariah countries.
In fact, any energy sector retreat we see in coming months is far more likely to result in the long-term cycle being both longer and stronger. And means much higher prices for favored stocks than we saw at the top of the up-cycle that ended in 2014.
Endangered Dividends List
Zero dividend cuts so far for 2022 in the Energy and Income Advisor coverage universe. That compares to 93 companies that reduced payouts at least once during 2020 and 2021.
Endangered Dividends List
We’re still waiting on our first 2022 dividend cut in the Energy and Income Advisor coverage universe, versus 93 companies that reduced payouts at least once during 2020 and 2021. That’s thanks to the immensely favorable combination of industry-wide financial conservatism since mid-2019 and the upturn in the energy cycle.
Energy’s Expanding Winners’ Circle
We’re now roughly two years into the energy upcycle—which began with North American benchmark oil prices actually in negative territory.
For most of that time, it’s paid to focus solely on the very best in class. They were the only energy stocks that were still profitable at the bottom. They were first to adjust to the current environment. And they were able to build market share during the downturn, even while less adept rivals were slashing dividends and filing for bankruptcy.
Endangered Dividends List
The number of 2022 dividend cuts in the Energy and Income Advisor coverage universe is still zero. That remains welcome news indeed versus the 93 companies that reduced their dividends at least once during 2020 and 2021. And it’s thanks to both the industry-wide financial conservatism since mid-2019 and the upturn in the energy cycle.
Endangered Dividends List
Earlier this month, global oil prices hit a 13-year high of nearly $140 a barrel. This week, they’ve backed off substantially. As this issue of Energy and Income Advisor goes to post, Brent crude has dropped back to a level just north of $100. And West Texas Intermediate Crude at the Cushing hub has come back to the mid-$90s.
Talking China: There’s a Big Opportunity in Energy
The eyes of the world are on fallout from Russia’s invasion of Ukraine. But energy investors would do well to instead check out my key takeaways from this week’s “U.S.-China Regional Dialogue Series: Forum on Innovation in Energy, the Environment and Sustainability.”
Feature: All About Earnings
This article is part two of a three part series in which we look inside the Q4 earnings and guidance of our recommended portfolio companies. Our purpose is to shed light on the all-important macro environment, as well as to project returns for recommended companies.
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