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.
International Update
After poring over second-quarter results, we’ve updated our comments on the more than 80 Canadian and Australian energy stocks in our International Coverage Universe. Here are some of our key takeaways from this process.
LNG Update
During our most recent Live Chat, we received a number of questions about liquefied natural gas (LNG) and shipping companies that specialize in transporting this commodity. Here’s our updated view on this market and our favorite names.
MLP Portfolio: Staying the Course
The midstream master limited partnerships in our model Portfolios generally posted solid second-quarter results and appear to be headed in the right direction.
The Wide World of Midstream MLPs
Second-quarter earnings season is done and dusted for most master limited partnerships. Here are our updated take and buy targets for all the midstream names in our ratings table.
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Live Chat with
Elliott and Roger on Sep. 26, 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