Whole-company takeovers in the energy sector peaked in 2011, when companies completed almost $192 billion worth of deals.
Mergers and acquisitions activity in the energy patch has slowed in subsequent years, declining by 41 percent last year; however, the premiums paid in these deals have steadily increased in recent years–a boon for investors who own these names.
Over the years, we’ve amassed a solid track record of identifying takeover targets, including mining equipment producer Bucyrus International, Bakken operator GeoResources and artificial-lift specialist Lufkin Industries.
More recently, Energy XXI (NSDQ: EXXI) offered to purchase Model Portfolio holding EPL Oil & Gas (NYSE: EPL) for a premium of 33.4 percent.
Our Secret: Focusing on high-quality names that trade at reasonable valuations. Holding a name that can’t stand and grow on its own in the hope of a takeover isn’t a winning strategy.
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 Sep. 30, 2020
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.