With the S&P 500 flirting with a new all-time high in recent trading sessions, investors are sitting on some impressive profits. However, not every name within the energy patch have participated in the rally.
Many oil and gas royalty trusts remain snake-bitten, with a massive downward revision to Chesapeake Granite Wash Trust’s (NYSE: CHKR) discounted net present value representing the latest blow to investor confidence in this security class.
At the same time, formerly red-hot names that provide marine seismic services have taken a breather after rallying considerably in the past few years. We take a closer look at the near-term catalysts for this highly cyclical industry and evaluate whether the recent retrenchment in share prices represents an inflection point before another rally or a precursor to more downside.
In This Issue
1. Disappointing well results from Chesapeake Granite Wash Trust (NYSE: CHKR) have shaken investors’ confidence in the structure, leading to selling pressure in units of other oil and gas trusts. See Royalty Trusts and the Affective Fallacy.
2. Shares of our favorite provider of marine seismic services have taken a breather after a solid run. A number of near-term upside catalysts could help the stock break through later this year. See Making Waves.
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. 29, 2020
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