Endangered Dividends List
American Midstream Partners (NYSE: AMID) will eliminate its distribution this month. That follows a 75 percent cut announced in July, which was preceded by a more modest 12.7 percent trimming two years earlier.
The immediate catalyst is a restated credit agreement, which based on expected fourth quarter financials would preclude management’s ability to pay a distribution.
12/28/18 Time for Some Year-End Moves
We still smell investor panic in the air. But the trading action of the past couple days is nonetheless encouraging, as the stock market has reversed big intra-day selloffs to finish higher.
Oil: It’s Not 2014
Crude oil prices accelerated their recent downtrend this week. West Texas Intermediate Crude at Cushing Oklahoma, the North American benchmark, has now dropped from high 70s to mid 40s in less than three months.
Prices in more transportation-constrained basins have fared worse. Edmonton Mixed Sweet, for example, is now trading for less than $40 a barrel. WTI Midland is as well, $7 a barrel less than WTI Cushing as swelling Permian Basin output has swamped available pipeline capacity.
Given the pounding we’d already seen in many energy stocks before this selloff, investors can be forgiven for thinking the sector is headed for another 2014-16 crash. This issue is devoted to those concerns.
Our feature article focuses on both the supply side and the demand side, with comparisons to two periods of steeply falling oil prices:
• The Financial Crisis of 2008, a period when global demand fell off a cliff.
• The 2014-16 oil crash, when Saudi Arabia and other traditional producers tried to flush out US shale producers by dramatically increasing output to flood supply and drive down prices.
Endangered Dividends List
Altagas Ltd (TSX: ALA, OTC: ATGFF) cut its monthly dividend to 8 cents Canadian from the previous 18.25 cents, starting with the January 15 payment. We highlight the move as part of a strategic reset by management in the December 13 Alert “Altagas Resets for a Hostile Capital Market.” Kinder Morgan Canada (TSX: KML, OTC: KMLGF) announced its 2019 financial projections, which reflect the now closed sale of the Trans Mountain pipeline system to the Canadian government.
Focus on MLPs: Questions and Answers
How have MLPs recommended in Energy and Income Advisor fared year-to-date? Is there any reason to expect a better performance in 2019?
The table “EIA Energy MLP Performance” highlights master limited partnerships recommended in three places: Our Actively Managed Portfolio, the Focus List and the “legacy” portfolios that we continue to track on the EIA website.
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Live Chat with
Elliott and Roger on Jan. 29, 2019
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Coverage Universe
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLP Ratings
Our assessment of every energy-related master limited partnership.
International Coverage Universe
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