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  • Roger S. Conrad

Voting Machine or Weighing Machine?

By Elliott H. Gue on Jul. 6, 2019

Two of the biggest challenges facing energy investors so far this year have been extreme volatility in oil prices and the historic disconnect between the path of oil prices and the performance of energy stocks.

In this issue we take a closer look at both issues.

In particular, we’ll review some of the fundamental factors and narratives that have catalyzed major speculative inflows and outflows in the oil market so far in 2019 and our latest assessment of the outlook for oil in the second half of this year.

Short term gyrations aside, oil prices are up about 27% over the past two years; yet, the price of the SPDR Oil & Gas Exploration and Production ETF, a popular fund tracking E&P stocks, is down more than 13%. That represents a historic breakdown in what’s traditionally been a powerful correlation.

We’ll examine some of the reasons E&P stocks have lagged oil since the recovery began more than two years ago. And, we’ll also pinpoint the key trend we’re watching that we believe could catalyze a major re-rating for select exploration and production (E&P) stocks into the first half of 2020 even if oil prices largely march in place.

Energy & Income Advisor

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.

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  • Live Chat with

    Elliott and Roger on Aug. 27, 2019

  • 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

    • Elliott H. Gue

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Roger S. Conrad

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor