Elliott Gue and Roger Conrad’s Complete Guide to

Energy & Income Investing

Over 50 years of combined experience in analyzing the energy markets!

THIS MONTH’S ISSUE

Ignore the Weather and Headlines: This is the Year of Natural Gas

February 4, 2025|

So far, 2025 has been anything but a quiet year for energy investors. But unlike for much of the stock market—including suddenly wobbly Big Tech—that hasn’t been a bad thing. Seven of our Portfolio recommendations have so far announced Q4 earnings and updated guidance. And as we highlight in this issue, the numbers are solid and the outlook strong. The oilfield services sector, for example, remains generally constrained by producer discipline—refusal to commit to higher CAPEX until there are clear price signals to do so. But our recommendation Baker Hughes (NYSE: BKR) nonetheless posted record earnings and free cash flow, raising its dividend 10 percent. And its stock is up close to 13 percent in a month. Other stocks are also already well in the green, despite not having reported results. Shares of midstream recommendation MPLX LP (NYSE: MPLX), for example, have broken over $50 ahead of its earnings. Coal and natural gas company Alliance Resource Partners (NYSE: ARLP) is pushing towards 30. And despite some ups and downs, both the Alerian MLP Index and Energy SPDR ETF are ahead of the broad market. As always, we’ll take our cue as investors from what our picks report. But at this...

Live Chat

with Elliott Gue and Roger Conrad

On 02/27/2025

Live Chat with Elliott Gue and Roger Conrad

Forget the Weather

By |February 4, 2025|

I know it’s cold outside. Just over a week ago the city of New Orleans, Louisiana, received 8 inches of snow in a single day, easily passing the prior record of 2.3 inches. Pensacola and Milton, Florida received 7.6 and 10 inches respectively, the highest totals since at least the late 19th century. Nationally, January 2025 is shaping up to be colder than normal. I track US weather conditions using Heating Degree Days (HDDs), a measure of average temperatures compared to a 65-degree Fahrenheit baseline – the more HDDs the colder the weather. According to my calculations based on data...

Endangered Dividends List: A Look at Westlake

By |February 4, 2025|

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...

Strong Portents from Q4 Numbers and Guidance

By |February 4, 2025|

Companies’ annual regulatory filings are far more complex than quarterly updates. For investors, the tradeoff is the additional information comes at the price of a longer wait time to see how underlying businesses are faring—which prolongs the decision making season as well. We’re nearly a month into 2025. And just seven EIA Portfolio holdings have thus far reported their results: Baker Hughes (NYSE: BKR), ExxonMobil (NYSE: XOM), Hess Corp (NYSE: HES), Hess Midstream (NYSE: HESM), Kinder Morgan Inc (NYSE: KMI), SLB (NYSE: SLB) and Valero Energy (NYSE: VLO). Each is a dominant player in its respective sector. That makes their...

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.

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