MLPs: Mind the Balance Sheet
Master limited partnerships issued significant amounts of debt and equity to build pipelines and other infrastructure needed to support the shale oil and gas revolution. The midstream construction boom has started to wind down, ushering in a period of consolidation when management teams focus on strengthening their balance sheets.
Why We’re Still Bearish on Offshore Contract Drillers
Weak demand, a wave of contract expirations and excessive leverage are all reasons to remain bearish on offshore contract drillers. Investors should continue to avoid these value traps.
MLP Equity Issuance: Past and Present
Overall equity issued by energy-focused master limited partnerships (MLP) declined by 58 percent last year; we expect this trend to continue in 2016.
Head Fakes, Oil Inventories and Hedges
Our near-term outlook for crude-oil and natural-gas prices hasn’t changed, though investors should consider taking profits on demand-oriented names that tend to thrive when oil prices dive.
The Upstream Cash Flow Crunch
The severe downdraft in the prices of crude oil, natural gas and natural gas liquids has pressured producers’ cash flow and outpaced reductions to service costs and capital expenditures. Accordingly, the cash flow shortfalls that predominated in the salad years have continued in the lean years, setting the stage for further spending cuts in 2016.
Huge Bet Against Crude Oil Creates Potential for Short Squeeze
Data from the Commodity Futures Trading Commission indicates that hedge funds and other institutional investors have shorted the equivalent of 160 million barrels of West Texas Intermediate via futures contracts.
Rig Count Rundown
The US-oil-directed rig count ticked up last week, but investors shouldn’t overlook the reduction in international drilling activity.
MLP Musings
With the exception of upstream operators, master limited partnerships have held up reasonably well relative to other groups in the energy sector. We survey some of the risks and opportunities.
Refiners: One of the Few Bright Spots in a Dark Period for the Energy Patch
Shares of US refiners have outperformed since oil prices swooned. Here’s why and what’s to come.
Gas-Directed Drilling Activity Provides Insight into US Producers’ Response to Lower Oil Prices
How US producers responded to plummeting natural-gas prices provides useful insight into how names with an oil-weighted output mix will contend with lower oil prices.
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Live Chat with
Elliott and Roger on Sep. 26, 2016
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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Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Peter Staas
Managing Editor: Capitalist Times and Energy & Income Advisor