Upstream Takeover Targets
Some of the biggest winners from mergers and acquisitions activity in the US upstream space have been the acquirers. Deal flow will continue to focus on assets and private-equity outfits monetizing their investments. We prefer names with solid balance sheets and exposure to franchise assets with low production costs; these names will continue to take market share, outperform their and grow their inventories of potential drilling locations.
The Shipping News: LNG Overview
The market for LNG tankers looks oversupplied for at least the next two years. Nevertheless, the space offers some attractive opportunities for discriminating investors.
Global LNG: Near-Term and Long-Term Outlook
We examine the root causes of the recent drop in Asian and European LNG projects, assess the implications of this recent retrenchment and highlight some key themes for investors.
Ship Shape: Floating Pipelines
The marine-transport segment of the MLP universe offers robust yields for conservative and aggressive investors alike. Here are two of our favorites.
New MLPs on the Seas
The latest batch of master limited partnerships to complete their initial public offerings include two names that specialize in marine assets: Transocean Partners LLC and Hoegh LNG Partners LP.
3 Reasons Why US Natural-Gas Prices Will Remain Low
Unless we stand on the cusp of a new ice age, investors shouldn’t expect a sustainable rally in US natural-gas prices.
More CAPEX, More Problems: A Survey of Big Oil
When casual investors think of the energy stocks, one of the Seven Sisters—BP (NYSE: BP) NYSE: BP), Chevron Corp (NYSE: CVX), Eni (NYSE: E), Exxon Mobil Corp (NYSE: XOM), Royal Dutch Shell (NYSE: RDS B), Statoil (NYSE: STO) and Total (NYSE: TOT)—likely springs to mind.
But these Western energy giants have come in for a great deal of criticism over the past several years, as investors lose patience with the industry’s massive capital investments and limited production growth.
GasLog Partners LP: A Virtuous Cycle
The creation of GasLog Partners LP provides GasLog with a cost-effective means of recycling capital to fund additional growth opportunities. This virtuous cycle involves GasLog selling LNG carriers in its fleet to GasLog Partners at prices that are accretive to the MLP’s distributable cash flow. The parent then redeploys some of the proceeds into ordering or acquiring new vessels that can be dropped down to the MLP once they obtain longer-term contracts.
Canada’s LNG Potential
Investors looking to profit from Canadian LNG exports today should curb their expectations and focus on names that offer near-term upside, as well as exposure to this longer-term opportunity.
Betting on US Energy Exports
Given the expenses, uncertainties and extended timelines associated with building liquefaction infrastructure, our inclination is to steer clear of pure plays on LNG exports. We prefer names that offer exposure to this trend but also stand to benefit from other upside drivers in the near term.
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Live Chat with
Elliott and Roger on Aug. 29, 2017
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Coverage Universe
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLP Ratings
Our assessment of every energy-related master limited partnership.
International Coverage Universe
Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Experts
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Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
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Peter Staas
Managing Editor: Capitalist Times and Energy & Income Advisor