Energy M&A Questions and Answers
After a long hiatus, energy M&A has heated up this year, first with Chevron Corp’s (NYSE: CVX) takeover offer for Noble Energy (NYSE: NBL) and now the proposed merger of equals between Devon Energy (NYSE: DVN) and WPX Energy (NYSE: WPX). Here are our thoughts for long overdue sector consolidation.
Endangered Dividends List
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.
Portfolio: What to Watch in Q3 Numbers
Calendar Q3 earnings reporting season is coming up fast. Here are confirmed and expected dates for EIA Portfolio and High Yield Energy List companies’ releases and analyst calls.
Another Winter of Disappointment for NatGas
US natural gas prices enjoyed quite a run this summer, jumping more than 91% from a 25-year low on June 26th of $1.432/MMBtu to a late-August high of $2.743/MMBtu. While that’s impressive, we’d caution about getting bullish on gas this year as we see little chance for sustained upside in US natural gas prices above the $2.75-$3.00/MMBtu range this winter. We continue to see a retest of this summer’s lows in gas, or even worse, as more likely.
Endangered Dividends List
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.
Portfolio: Resilient Businesses and Lagging Stocks
We’re in between earnings seasons. So, news flow from recommended Portfolio companies has been relatively sparse compared with a month or so ago. The important thing is what we have seen continues to demonstrate the business resilience of our positions.
Feature article: The Summer of Growth
There’s no doubt it’s been a disappointing summer for energy stocks. Energy stocks were the best-performing group in the S&P 500 from the March 23rd lows through the June 8th peak, soaring 96.5%. However, from June 8th through the present date, energy reversed course, falling about 22.9% compared to a return of just under 9% in the S&P 500.
Portfolio: Earnings and Guidance
Q2 results and guidance updates are all in for Model Portfolio and High Yield Energy List recommendations. The bottom line is in the worst quarter for the US economy in at least 90 years, all defended their strong balance sheets and stayed on track for long-term growth.
Endangered Dividends List
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.
Roundtable: What We’ve Learned So Far from Q2 Results
Q2 numbers were always going to be weak. And that was bound to be the case whether we were talking about dominant companies like Enterprise Products Partners (NYSE: EPD) and Kinder Morgan Inc (NYSE: KMI), or the biggest basket cases on our Endangered Dividends List.
Live Chat with
Elliott and Roger on Mar. 25, 2021
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Producers and Drillers
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLPs and Midstream
Our assessment of every energy-related master limited partnership.
International Coverage
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