International Coverage Universe: Key Takeaways from Third-Quarter Earnings
Here are our key takeaways after reviewing third-quarter results and conference calls from the more than 90 stocks in our International Coverage Universe.
Top Energy Stocks for 2017
Elliott Gue and Roger Conrad highlight their top 10 energy stocks for 2017, with an emphasis on the names that offer the best risk-reward propositions.
New Additions
After attending the DUG Midcontinent conference and reviewing third-quarter results, we have added two midstream operators to the MLP Portfolio’s aggressive sleeve.
Quarterly Check-Up
A number of our Model Portfolio holdings have reported third-quarter results. We look at how they fared and analyze their future growth prospects.
Midstream Takeover Targets
The midstream segment appears ripe for consolidation, as well-heeled utilities seek to leverage their low cost of capital and pull on the demand side to add exposure to gas pipelines.
Upstream Takeover Targets
Some of the biggest winners from mergers and acquisitions activity in the US upstream space have been the acquirers. Deal flow will continue to focus on assets and private-equity outfits monetizing their investments. We prefer names with solid balance sheets and exposure to franchise assets with low production costs; these names will continue to take market share, outperform their and grow their inventories of potential drilling locations.
Gas-Levered E&P: Buy the Dips and Sell the Rips
The inherent volatility in natural-gas prices creates trading opportunities in upstream operators that primarily produce this thermal fuel.
Natural Gas: Impressive Rally, But Wait for the Production Response
Much of the recent upside in natural-gas prices reflects the unusually hot summer weather, expectations for a cold winter and modest supply growth, as oil and gas producers have curbed their drilling and completion activity in prolific US shale plays. However, our intermediate- to long-term outlooks for gas supply and demand remain unchanged: Expect the price of the thermal fuel to continue two fluctuate primarily with winter demand. And don’t bet on a sustainable breakout unless a new Ice Age (not another installment of the children’s movie franchise) cometh.
Natural-Gas Pipelines: Pump up the Volumes
The best-positioned natural-gas pipelines have benefited from surging production in the Marcellus Shale as well as growing demand for the thermal fuel among utilities, thanks to ultra-low prices and the retirement of coal-fired power plants. This tailwind looks set to continue in coming years, which helps to explain the accelerating pace of merger and acquisition activity targeting these assets. But not all pipelines are created equal. We highlight some of our favorite midstream operators.
E&P Update
We highlight five high-quality exploration and production stocks for investors to buy on a pullback as well as on speculative play on a 2017 recovery in oil prices.
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Live Chat with
Elliott and Roger on Jul. 27, 2017
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