THIS MONTH’S ISSUE
We Have the Energy Stocks for 2025 Whether it’s Boom or Bust
Happy Holidays everyone! Please join us for our end of the year live webchat Monday afternoon, December 30 starting at 2 pm. Thanks for reading!—EG, RC. Boom or bust? When it comes to energy, many investors seem undecided with a little less than two weeks to go in 2024. The commodities look soft. Benchmark North American oil prices are again cutting under the $70 per barrel benchmark. And while continuous futures for natural gas are now over $3 per million BTU, they’re still at less than half their level of a couple years ago. Energy price weakness tracks similar softness in other commodities. And we think it reflects an investor expectation for weaker Asian demand in 2025, with China’s stimulus failing to meet expectations. Should that scenario play out, we’d see an expanding a global glut of oil as well as LNG. That would likely drive prices lower still and hold them there for a while, though sub-$70 oil already reflects that expectation to some extent. On the other hand, energy stocks are still well in the black for this year. For example, the natural gas-weighted producers we’ve emphasized lately—particularly EQT Corp (NYSE: EQT) and Expand Energy Corp (NYSE: EXE)—are...
Live Chat
with Elliott Gue and Roger ConradOn 12/30/2024
Lack of Growth Can Indicate Risk
Endangered Dividends List companies are vulnerable for one or more of the following reasons: Cash flow coverage of distributions is inadequate. Elevated debt levels with imminent refinancing needs. Revenue pressure triggered by weakness for at least one key asset. Inability to access the equity market on favorable terms to fund capital spending, forcing management to utilize more internally generated cash flow. Exposure to volatility in commodity margins from either rising or falling prices of raw materials. Aggressive general partners anxious to buy in limited partners’ cash flows at discounted prices. Regulatory reversals. Expiring contracts with little hope for renewals at...
Portfolio Strategy: A Strong 2024 with Plenty Left in the Tank
Uncertainty about global growth, interest rates, inflation and Trump administration policies’ effect on certain industries may spoil a Santa Claus rally for many stocks. But barring an historic collapse in the next two weeks, 2024 will still go down as another great one to build positions in best in class energy stocks. That’s what we have here in the Energy and Income Advisor model portfolio. And top quality is the hallmark of the High Yield Energy List as well, though royalty companies Alliance Resource Partners (NSDQ: ARLP) and Black Stone Minerals (NYSE: BSM) offer more direct commodity price exposure for...
Natural Gas’ AI Opportunity
In March 2009, the Georgia Public Service Commission gave its final approval for Southern Company (NYSE: SO) to start building two new nuclear reactors at the Vogtle site. That capped a multi-year review process. But the utility’s challenges were just beginning, as the second of the AP1000s only started generating electricity 15 years later! Now they’re actually running, the new Vogtle units will produce clean, reliable power 24-7 at a rock steady cost for decades to come. But in taking 2 to 3 times as long to complete as initially anticipated, the all-in cost more than doubled. And only the...
Meet Our Editors
Elliott H. Gue
Founder and Chief Analyst
Since earning his bachelor’s and master’s degrees from the University of London, Elliott has dedicated himself to learning the ins and outs of this dynamic sector, scouring trade magazines, attending industry conferences, touring facilities and meeting with management teams.
Roger S. Conrad
Founder and Chief Analyst
Roger S. Conrad has successfully advised income investors since the 1980s, with a nationally acclaimed sector specialty in utilities, telecommunications and energy. He’s a managing partner of Capitalist Times author of Power Hungry, independent director of NYSE-listed Miller Howard High Income Equity Fund and contributing editor to Forbes.com.
