Endangered Dividends List

Three companies on our Endangered Dividends List slashed their payouts since the previous issue went to post. None of these moves was unexpected, but only Energy Transfer’s (NYSE: ET) 50 percent reduction was enough for the company to escape the EDL. Still a member of our High Yield Energy List, the company’s generally positive Q3 results and guidance are highlighted in the Feature article.

So far, only a small fraction of energy companies have announced Q3 results and updated guidance for the rest of the year. A much larger number, however, have declared their dividends for the current quarter. And the vast majority is sticking to the same amount they paid this summer.

New Hope Corp (ASX: NHC, OTC: NHPEF) is the only Energy and Income Advisor coverage universe company to announce a dividend cut since the previous issue went to post. That brings the total number to 71 since early March.

Whitehaven Coal (ASX: WHC, OTC: WHITF) is the only Energy and Income Advisor coverage universe company to announce a dividend cut since the previous issue went to post. That brings the total number to 70 since early March.

Four more Energy and Income Advisor coverage universe companies have announced dividend cuts since our July 22 issue went to post. Two are super majors BP Plc (London: BP, NYSE: BP) and Eni SpA (Italy: ENI, NYSE: E). We remain convinced that the majors’ business model will stand the test of time going forward as it has in the past.

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.

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.

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.

Just one energy company in our coverage universe has cut its dividend since the May 31 issue of Energy and Income Advisor went to post. Helmerich & Payne’s (NYSE: HP) reduction to 25 cents per share from 71 cents the previous quarter follows what’s been an all-too-familiar pattern for contract drillers and energy services firms this year. As oil and gas producers have reined in drilling activity, cash flows have dropped sharply.

The entire EIA coverage universe has now announced their distributions for calendar Q2. Two more companies reduced their payouts since the previous issue: Halliburton Company (NYSE: HAL) and PBF Logistics LP (NYSE: PBFX).