Portfolio: Earnings and Guidance
Its now just days before the start of Q1 earnings releases and guidance updates for energy companies. And the only thing that’s clear is the numbers will be considerably worse than what we saw in Q4.
Endangered Dividends List
Since the previous issue of EIA, six coverage universe members have announced distributions cuts. By the end of the month, 31 companies currently on our Endangered Dividends List will declare dividends. And we expect to see a sizeable number of them either cut or eliminate payouts in response to the recent drop in oil prices.
Feature Article Roundtable: Energy Stocks After the Rally.
What are the main reasons energy stocks rallied so dramatically the past few weeks? Will they go higher this year? As we outlined in the last issue of Energy & Income Advisor, “Energy’s Great Guidance Re-Set,” we’re bearish on oil prices in the short term, because the supply-demand balance is weak and will remain weak even after record-sized cuts promised by OPEC+ last week.
Oil’s Short, Intermediate and Long-Term Outlook
Considering oil’s historic sell-off in recent weeks, it’s worth stepping back to look at the big picture and offer a more detailed short, intermediate and long-term outlook for the commodity.
Endangered Dividends List
Eight companies in our coverage universe have announced distribution cuts since the previous issue of EIA. We expect to see at least a like number by the time the next issue goes to post, as more management teams adjust guidance to sub-$30 per barrel oil. And we’ve accordingly added to the table, which now lists 39 companies from our coverage universes.
Portfolio: Another Look at Energy Bonds
In the March 25 Energy Commentary “Energy Bonds are Ripe Again,” we highlighted an emerging fixed income opportunity in bonds of battered energy companies up and down the value chain.
Endangered Dividends List
Many companies have cut dividends since the previous issue of EIA. The sharp drop in the price of Western Canada Select (WCS) oil was the primary catalyst for cuts at ARC, Bonterra, Crescent Point, Vermilion and Whitecap.
Portfolio: More on High Grading
To call the High Yield Energy List we launched last May a disappointment so far would be the understatement of the year. The one thing that went right was that none of the initial 10 recommendations has cut its dividend, with the exception of EnLink Midstream (NYSE: ENLC).
High Grading Energy At A Time of Stress: Some Questions
We expect to see more pressure on energy stocks. So why shouldn’t someone just sell everything now and wait for a bottom? There are basically three reasons. First, market history teaches us that when energy does hit a final bottom, spotting it will be much more a matter of luck than insight or skill.
Six Picks
Some investors may raise an eyebrow at this recommendation, as well as our risk rating of the midstream MLP as “Conservative.” And Energy Transfer hasn’t held up well in the COVID-19-inspired energy sector selloff either, with the share price closing in on its lowest point in four years and the yield a distressed-looking 11 percent plus.
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