Oil Prices, Production Volumes and MLP Investment Strategy
The most recent issue of Energy & Income Advisor, Dusting off the Crystal Ball, laid out our outlook for the stock market, the US economy and the prices of oil, natural gas and natural gas liquids (NGL) over the coming year. These views shape our strategy for investing in master limited partnerships (MLP) in the near term and for the long haul.
Outlook 2016: Energy Prices
Our calls on crude-oil prices over the past year have been spot on for the most part. Although our macro calls haven’t saved our Portfolios from the carnage, we have avoided many of the worst performers, used hedges to provide some upside protection and set ourselves up to profit from the down-cycle’s final chapters. Here’s what we see for the year ahead.
Strategy Update
Although many of our decisions in 2015 necessarily reflected our outlook for significant downside in crude-oil prices during the fall and winter turnaround seasons, investors should take a longer view when positioning their portfolios this year.
Outlook 2016: US Economy and Stock Market
Wall Street analysts’ consensus estimate for US economic growth appears overly optimistic, while technical indicators suggest that the risk of a bear-market correction in the S&P 500 remains elevated.
Doing the Breakdown: An In-Depth Look at the Biggest MLPs
In this issue, we delve into some of the biggest partnerships by market capitalization to evaluate the pressure points in their underlying businesses if energy prices remain lower for longer and their ability to meet near-term debt maturities and planned capital expenditures.
Taking the MLP Market’s Temperature
Our focus has always been on the quality of an MLP’s underlying assets and cash flow—the foundation for long-term wealth building. But in this environment, liquidity and cost of capital can also exert a profound influence on a partnership’s distribution policy, particularly for names with significant capital spending needs.
MLP Madness
The ongoing weakness in master limited partnerships (MLP) continues to weigh on many investors’ minds. We address some of the risks and fears, legitimate and otherwise.
Bringing Clarity to a Fuzzy Big Picture
We explain why most geopolitical events will hold less sway over global oil prices in coming years and tackle other big-picture questions.
Trimming Some of Our Hedges
We reassess the various hedges against lower oil prices that we’ve highlighted over the past two years.
Stock Market Outlook
Narrowing market leadership and other technical indicators suggest an increasing risk that US equities could suffer a sizable correction in the first half of 2016.
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Live Chat with
Elliott and Roger on May. 30, 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