Feature Article

Q1 earnings reporting and guidance updates are now all in for our EIA Model Portfolio and High Yield Energy List recommendations. Here are the key takeaways for each of them.

Note that we’ve broken our analysis into three sections for easier reference: MLPs and Midstream, Services and Producers.

Investment in new oil and natural gas production and supporting infrastructure continues to badly lag the level of previous cycles. That promises to keep supply in catch up mode to demand for years to come. And we expect both commodity prices and energy stocks to push out to new heights, well above even the highs achieved in the previous cycle.

Seven months ago, we highlighted five reasons for patient energy investors to take positions in best in class Canadian energy companies.

To capitalize, we recommended two producers and three midstream companies. Two have been Model Portfolio stocks for many years: Pembina Pipeline (TSX: PPL, NYSE: PBA) and TC Energy (TSX: TRP, NYSE: TRP).

Per usual, Kinder Morgan Inc (NYSE: KMI) will lead off for our midstream energy companies later this week. New addition Baker Hughes (NYSE: BKR) will precede Schlumberger Ltd (NYSE: SLB) by a couple of days for services companies. And checking in for the refiners a few days later will be Valero Energy (NYSE: VLO).

Part three of our feature article series on Q4 earnings and guidance for our recommended Portfolio and High Yield Energy List companies. This edition covers the last seven reporters.

Even the best investment ideas occasionally have to take a breather. And it’s such a time for a couple of the hottest oil-focused producer stocks in our Model Portfolio: Occidental Petroleum (NYSE: OXY) and Pioneer Natural Resources (NYSE: PXD).

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.