Roundtable: Energy and the Stock Market
Roger Conrad: A month ago, we talked about the super majors as really a breed apart in the energy business, particularly for anything to do with long-term business resiliency. A lot of that has to do with balance sheets.
I mean there are plenty of sovereign governments that can’t match the Aaa credit rating ExxonMobil (NYSE: XOM) draws from Moody’s.
Endangered Dividends List
Endangered Dividends List companies are vulnerable for different reasons like cash flow, elevated debt levels, revenue pressure etc. This edition of the EDL table is expanded by five names since the previous issue of EIA.
The Outlook for Gas
Since the end of 2011, the average weekly closing price for front-month US natural gas futures is roughly $3.15/MMBtu, in-line with the current price of $3.12/MMBtu. In the short term, US gas storage levels are at the lowest levels in 15 years, supply growth is constrained and demand remains robust. That could lead to a spike in NYMEX gas futures to $4/MMBtu or higher this winter.
Endangered Dividends List
Endangered Dividends List companies are vulnerable for different reasons like cash flow, elevated debt levels, revenue pressure etc.
Endangered Dividends List
Ferrellgas Partners (NYSE: FGP) has exhausted a $50 million reserve for paying distributions. Under its debt covenants, the propane distributor MLP will have to suspend its distribution entirely, until the consolidated fixed charge coverage ratio recovers.
Roundtable: Our Views On Super Majors
Talking Point #1: What’s your general view of the super major oils at this time?
• Roger Conrad (RC): I became a shareholder of Chevron Corp (NYSE: CVX) when it acquired the former Texaco, which I believe was actually the first stock I ever bought. I was fresh out of business school and made an investment in Texaco’s dividend reinvestment plan, and I’m happy to report that I literally make more in dividends every year than my original investment.
Model Portfolios: Simplifying our Strategy
Starting in September, we’re taking a giant step to simplify our Energy and Income Advisor Portfolio strategy.
Our 3 Model Portfolios are divided into “Conservative” and “Aggressive” Holdings. The Conservative stocks are intended to be bedrock positions, where our objective is long-term capital appreciation and in most cases a rising stream of income. The Aggressive stocks carry more risk but also more upside potential and often very high yields to reward your wait.
Roundtable: Our Views on Q2 Earnings, Picking Permian Basin Targets, MLP Corporate Conversion, 2018 Political Risks and More
Talking Point #1: The Permian Basin of West Texas and New Mexico
– Roger Conrad (RC): Elliott, a lot has happened in the energy sector since the Roundtable discussion you and I had following MLP & Energy Infrastructure Conference. But the most striking development to me is how, despite what seems to be an endless legion of skeptics, the action in the Permian Basin just keeps heating up.
A 30,000 Foot View of the Global Energy Industry Today
Oil services giants Halliburton (NYSE: HAL) and Schlumberger (NYSE: SLB) are two of the most important energy companies to watch during quarterly earnings season.
That’s not because they’re the biggest companies in the energy patch; after all, super oil Exxon Mobil (NYSE: XOM) is nearly 4 times the size of Schlumberger by market capitalization. However, no companies have more insight into trends in the global energy industry, new technologies gaining traction in the field and producer activity levels than these two firms.
No Surprises: Earnings Reporting Season Brings Distribution Cuts
Our EIA Endangered Dividends List highlights companies in our coverage universe where dividends are at elevated risk of being cut for one or more of the following reasons:
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Live Chat with
Elliott and Roger on Aug. 27, 2019
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