Q. You’ve pointed out that many midstream companies and MLPs have doubled and even tripled off their late March lows. But even companies you’ve called best in class like Enterprise Products Partners (NYSE: EPD) are still down more than 30 percent from where they started the year. And they’re at a fraction of where they were in mid-2014 when oil was over $100 a barrel. When can we expect a full recovery or has the situation changed forever?
A. Back in summer mid-2014, energy midstream companies and MLPs were sold to investors as being practically as safe as regulated utilities, with earnings and dividends virtually unaffected by oil and gas price volatility. We never promoted that line. But neither did we expect to see it proven as spectacularly wrong as it has been the past six years or so, or that midstream companies and especially MLPs would sustain such reputational damage.
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.
Elliott and Roger on Oct. 28, 2021
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.