THIS MONTH’S ISSUE
Oil and Gas Drive Growth, But NGLs are Turbo-Charged
Editors’ Note: Here’s your September issue of Energy and Income Advisor. This month, we focus on opportunities in the overlooked but rapidly growing natural gas liquids sector. Please join us for our monthly webchat Tuesday afternoon, September 26 starting at 2 pm ET. It’s the ideal time to ask us anything.—E.G., R.C. Since we posted the August issue of EIA, benchmark crude oil prices are up roughly $10 per barrel. That’s helped push the producer heavy S&P 500 Energy Index well into the black for the year. But it’s the midstream heavy Alerian MLP Index stealing the show, riding another solid month to a year-to-date return of almost 20 percent. Best in class midstream companies like Enterprise Products Partners (NYSE: EPD) still sell for far less than when the previous cycle peaked in 2014. And in Enterprise’s case, that’s despite a 40 percent increase in dividends. We don’t expect midstream companies to really make their move until this energy price up cycle matures considerably. But all the positive trends we highlighted a month ago appear strong as ever. That includes shareholder friendly M&A, starting with the now closed merger of the former Magellan Midstream Partners and ONEOK Inc (NYSE: OKE)....
Live Chat
with Elliott Gue and Roger ConradOn 09/26/2023
NGLs: America’s Forgotten Energy is Driving Growth
Since the end of 2009, US oil production has jumped by more than 130 percent from 5.5 million bbl/day to about 12.9 million thanks primarily to the rapid development of several onshore shale oil fields, particularly the Permian Basin of Texas and New Mexico. And, of course, the US is the largest producer of natural gas in the world thanks to shale plays such as the Marcellus in Appalachia, the Haynesville in Louisiana and associated natural gas production from oil-focused regions like the Permian. Over the past few years, we’ve written extensively about the boom in US exports of natural...
Endangered Dividends List
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...
When to Expect Q3 Results and What We Expect From Them
Last month, we highlighted the generally positive Q2 results and upbeat guidance for our Energy and Income Advisor portfolio recommendations. Here’s when to expect Q3 results, with the first date for earnings and the second the expected date of the next dividend declaration: Baker Hughes Co (NYSE: BKR)—Oct 25, Oct 26 Black Stone Minerals LP (NYSE: BSM)—Oct 31 (expected), Oct 18 Cameco Corp (TSX: CCO, NYSE: CCJ)—Oct 31, Oct 27 Chesapeake Energy (NYSE: CHK)—Nov 1 (expected), Nov 1 Crestwood Equity Prt(NSDQ: CEQP)—Nov 2 (expected), Oct 19 CrossAmerica Part LP (NYSE: CAPL)—Nov 7 (expected), Oct 20 Energy Transfer LP(NYSE: ET)—Nov 1 (expected),...
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.
