THIS MONTH’S ISSUE
Oil Turns Bullish, Energy Stocks Stay Strong
We invite you to join us at the Orlando MoneyShow, where we’re presenting on Thursday October 17. Hope to see many of you there in person! Thanks for reading.—EG, RC. Oil and natural gas prices remained under pressure the last month. Benchmark crude oil futures dipped under $70 a barrel earlier this month, for the first time since last December. Equivalent natural gas is still well off its spring lows, when the fuel’s price dipped briefly under $1.50 per million BTU. But we’ve yet to see a sustained break above the $3 mark, a minimum level for many producers to consider ramping up output. We think the bottom is in for now for both commodities. And we look for a sustained uptrend to resume this year. One reason is simply that expectations could scarcely be lower. We note that futures speculators’ net position in oil was recently more bearish than it was in 2020, at the height of the pandemic year impact on demand. That’s a tacit forecast for global demand to collapse over the next 6 to 12 months, with China’s disappointing growth and election year jitters no doubt looming large. But to our eyes, it’s a pretty clear...
Live Chat
with Elliott Gue and Roger ConradOn 10/29/2024
TC’s South Bow Spinoff: Stick With Both Pieces
It’s been roughly three weeks since TC Energy Corp (TSX: TRP, NYSE: TRP) spun off its oil and liquids pipeline operations as a new company, South Bow Corp (TSX: SOBO, NYSE: SOBO). TC shareholders of record on September 25 received 0.2 shares of South Bow for every one TRP previously owned. Management of both companies has announced they intend to release Q3 results and declare dividends on November 7. And they’ve pledged the combined payout will be “at least equal” to the TC’s pre-spin 96 cents Canadian, which will be paid October 31 to shareholders of record September 27. Our...
Talking Top Energy Stocks: Oil, Gas, Uranium and Coal Breakdown
I sat down yesterday with Steve Barton of In It To Win It for a deep dive on the energy sector. We talked about major trends in oil, natural gas, uranium, and coal, with insights into how these commodities are shaping up for the rest of 2024 and into 2025.
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...
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.
