Endangered Dividends List
There have been no dividend cuts announced in our energy stock coverage universes since the previous issue of Energy and Income Advisor. Three companies, however, halted what had been consistent quarterly distribution growth.
MLP Conversions and Rollup Q&A
Is the Hess Midstream Partners (NYSE: HESM) transaction a good deal for unitholders, or should we take this opportunity to cut and run before there’s real damage? We think the positives outweigh the negatives of this deal. With Hess Midstream converting to a corporation, those who hold it outside of an IRA will probably pay higher taxes on distributions going forward.
Endangered Dividends List
Dynagas LNG Partners (NYSE: DLNG) has arranged a new $675 million credit facility with lenders to refinance a $470 million term loan and $250 million in senior notes maturing in November. The new debt deal should enable the company to continue its recovery, with six LNG tankers operating under multi-year charters.
Endangered Dividends List
Since our previous issue of Energy and Income Advisor, there have been no distribution cuts in our various coverage universes. That’s likely to have changed by mid-October, following the next round of dividend declarations by Endangered Dividends List companies.
Energy Tech Roundtable
What are some of the new technologies North American shale producers are using to drive their costs lower? What’s their potential? Most people don’t think of electricity as a cost of operating energy infrastructure.
Endangered Dividends List
In addition to Antero Midstream Corp (NYSE: AM) discussed above, we’re also adding Dynagas LNG Partners (NYSE: DLNG) and Summit Midstream Partners (NYSE: SMLP), less than a year after they came off the EDL following deep dividend cuts.
Energy Strategy Roundtable
Talking Point #1: What’s the risk of recession and a demand led collapse in oil prices over the next 12 months?
EG: I continue to believe fears of recession are overblown in the US. In fact, I’m seeing some tentative signs the US economy is stabilizing and we may see some improvement in data over the next few months.
Energy Outlook Post Q2 Earnings
Talking Point #1: How much should we worry about the possibility of stalling or even falling production growth in North America for producers, drillers, midstream and downstream companies we own?
EG: Ironically, I think falling US production would be a huge positive for most of the upstream (producers) and services companies we recommend.
Endangered Dividends List
As we pointed out in our August 14 Energy Commentary “The Hammer Falls on Sanchez: Who’s Next,” Sanchez Midstream Partners (NYSE: SNMP) has eliminated its quarterly dividend. We now believe there’s a better than even chance it may have to follow its general partner Sanchez Energy (OTC: SNECQ) into bankruptcy.
Endangered Dividends List
There have been no dividend cuts in our Energy and Income Advisor coverage universe in the brief time since the previous issue went to post. Rather, the majority of EDL members have elected to maintain the same payout rates for at least another quarter.
Live Chat with
Elliott and Roger on Jun. 30, 2020
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