THIS MONTH’S ISSUE
Energy Earnings Ever More Bullish and The Cycle is Young
Editors’ Note: Happy Thanksgiving everyone! This month, we’re splitting the issue into two. This part focuses on our recommendations in the Portfolio and High Yield Energy List, with analysis of Q3 results and updated guidance. Part two will feature our big picture Roundtable and will post next week. Please make plans to join us for our post-holiday webchat Thursday afternoon, November 30 starting at 2 pm ET. Thanks for reading! —E.G., R.C. The producer heavy S&P 500 Energy Index is now in the red year to date by -1.1 percent. The Philadelphia Stock Exchange Oil Service Sector Index (OSX) is slightly in the green at 0.8 percent. And the midstream-focused Alerian MLP Index (AMZ) is in the black by 24.4 percent. We highlight performance of each of our recommended energy stocks in the Portfolio discussion. Taken together, our portfolio recommendations are up 16.1 percent year to date through the close November 21. Actual Model Portfolio performance including weightings and several decisions to take profits was somewhat better. Breaking it down, all of our sub-sector groups are either well ahead or in line with averages. Our pair of downstream energy companies have returned 11.7 percent year to date. Our two energy...
Live Chat
with Elliott Gue and Roger ConradOn 12/28/2023
Roundtable coming next week
Part two will feature our big picture Roundtable and will post next week.
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...
How We Fared in Q3
All of our Energy and Income Advisor portfolio companies have now released their calendar Q3 results and updated guidance. Here’s how they fared and what we expect to see as this energy upcycle unfolds. Note that the former Crestwood Equity Partners has now merged with Energy Transfer LP (NYSE: ET). At this point, investors should have received 2.07 ET units per unit of CEQP previously held. And we’ve added the ET units received to our position in the company. We highlighted Kinder Morgan Inc’s (NYSE: KMI) results in the October 20 issue of Energy and Income Advisor. And in 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.
