THIS MONTH’S ISSUE
The New Energy Architecture: That Means Natural Gas
The temporary noise in global energy markets from the Israel/Iran conflict has died down. And it’s just another example why energy investors must take headline-grabbing geopolitics with a big grain of salt, and keep our focus on supply and demand. Over the past month, we’ve sent you two alerts. The first on June 26th concerned a change in the Activity Managed Model Portfolio. We swapped out Occidental Petroleum (NYSE: OXY) for faster growth and higher yielding Permian Resources (NYSE: PR). In the second, we highlighted our view that natural gas prices’ late spring/early summer swoon is another great entry point to bet on the long-term energy upcycle, which recently passed its fifth birthday. Our favorite ways to play are the most gas-weighted producers in the Portfolio, EQT Corp (NYSE: EQT) and Expand Energy (NYSE: EXE). This month, we’re taking a higher yielding bet on an oil and gas price recovery in the High Yield Energy Target List, buying royalty producer Dorchester Minerals (NYSE: DMLP). It’s ideal for risk tolerant investors who want rising commodity prices to flow directly into higher quarterly dividends. We’re making these moves now because—negative investor sentiment notwithstanding—underlying supply and demand drivers for oil and gas are...
Live Chat
with Elliott Gue and Roger ConradOn 07/29/2025
Three New Members
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...
Fresh Horses
So long as energy is in a long-term up-cycle, most sector stocks will make money. But you’ll maximize gains by buying and selling occasionally. So this summer, we’ve added some fresh horses. In June, we added rapidly growing LNG export facility operator Venture Global Inc (NYSE: VG) to the Actively Managed Model Portfolio. Since then, the company announced an expanded agreement with Securing Energy for Europe, adding 0.75 million tons per year of LNG to a 20-year deal for a total of 3 million tons annually. That should keep Venture on track to meet full-year guidance, which management is expected...
Give Your Energy Portfolio a Dividend Checkup
Dividend cuts in the energy sector have been relatively rare the past few years—other than for companies with payouts directly tied to energy prices and those attempting to dramatically cut debt. That’s to be expected in the middle of an energy upcycle that’s now passed its fifth birthday with a long way still to climb. Nor are companies in our coverage universe by and large taking the kind of risks now that could come back to hurt them in tougher times. North American shale discipline reigns supreme. Producers continue to tie output and CAPEX decisions to commodity price signals. Midstream...
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.
