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  • Roger S. Conrad

Energy in 2020: By the Sectors

By Roger S. Conrad on Dec. 28, 2019

We’re coming to the end of 2019. The good news is, in stark contrast to a year ago, the wind is very much at our back for our energy stocks.

Performance of our Actively Managed Portfolio holdings wasn’t universally positive this year. But as we report in this issue’s Portfolio discussion, the winners appear to have more than offset the notable losers. And despite launching our High Yield Energy List with remarkably poor timing, even the most damaged companies over the year’s first 11 months appear to be finishing strong, with the expectation of better times in 2020.

This is the second of three issues this month highlighting our outlook for what we believe will be a very strong year for energy in 2020. The focus of the first was on the macro, under the title “Oil: Our 2020 Outlook.

We strongly encourage everyone to read that feature article first, as it explains what we see happening for the commodity and thereby sets the table for what comes next. The feature piece this time is in a discussion format where we highlight our sector-by-sector view for energy stocks, from producers and midstreams to service companies and refiners.

The final issue of this year focuses on individual recommendations and our portfolio strategy. It’s our “game plan” for taking advantage of what we believe will be a strong year for energy stocks in general, but with timing of rallies likely to vary sharply by sector.

At the end of the day, we believe investors can do quite well just by buying good stocks across sectors at today’s low prices. But in our experience, all too many investors will be tempted to jump out of initial laggards for fear of missing out on the energy rally entirely.

As a result, they’ll chase some stocks after they’ve already made the majority of their moves. And they’ll miss the rallies in other stocks that don’t get off the mark fast enough to suit.

The feature piece this month discusses our game plan at length. December’s third issue highlights the specifics of the strategy.

Note that we’ve made some changes to the coverage universes presented on the Energy and Income Advisor website. That includes adding a handful of producers and a change in our risk ratings to indicate whether stocks in our coverage universes are best suited for “conservative,” “aggressive” or “speculative” investors.

We’re also eliminated the column for “comments.” From now on, when we have a comment on a company, we’ll be including it in the text of a regular issue.

Readers also have the opportunity to ask questions about any company in our coverage universes during our monthly subscribers-only online chats. Our next one falls on New Year’s Eve, December 31. Please put it on your calendar.

Energy & Income Advisor

Your complete guide to energy investing, from growth stocks to high-yielders.

In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.

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  • 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

    • Elliott H. Gue

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Roger S. Conrad

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor