For energy investors, 2021 will go down as one of the best ever. Benchmark North American crude oil started the year priced well under $50 a barrel but finished at around $77, after spending much of it over $80. Natural gas went from under $2.50 per million BTUs to nearly $6.50, before settling at $3.76.
More than anything else, the commodities’ strength was responsible for lifting the S&P 500 Energy Index and Alerian MLP Index to memorable gains of 53.6 and 39.1 percent, respectively. And as we highlight throughout this issue, a well-chosen portfolio of individual energy stocks did even better. Wise stock picking in energy mattered just as much in 2021 with the cycle turning higher as it has the past several years when the downside prevailed. And the same will be true in 2022 as the cycle enters its next phase.
Even in 2021, there were ways to lose money in energy stocks. Buying companies that later cut dividends was one. And it remains the single biggest danger to the unwary in 2022, with Sprague Resources LP (NYSE: SRLP) back on the Endangered Dividends List just two months after cutting its payout by more than a third.
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 May. 25, 2022
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.