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

Energy Stocks Pause: Business Results Ensure the Rally Will Resume

May 28, 2024|

› Please join us Thursday, May 30 starting at 2 pm for this month’s live webchat. Hope you’re having a great Memorial Day weekend and thanks for reading!—EG, RC. Oil prices have cooled off a bit over the past month. Both the global Brent and WTI Cushing now sell for a bit less than $80 a barrel. And though futures markets have moved up, the natural gas spot price at the Henry Hub went into Memorial Day weekend at just $2.22 per million BTU. All of our portfolio recommendations have reported Q1 results and updated guidance. And takeaway number one is they’re still thriving in a soft price environment. Six raised 2024 guidance and a seventh Chesapeake Energy (NYSE: CHK) boosted dividends 24.4 percent. That’s impressive. But it wasn’t enough to prevent a pause in energy stocks’ rally. The S&P 500 Energy Index is still ahead by 10.1 percent year to date including dividends. But a month ago, it was up 15.2 percent. And at the April 5 close, the gain was 18 percent. Last month’s 6.4 percent gain for the Philadelphia Oil Service Sector Index (OSX) has shrunk to just 1.65 percent. And since early April the index is...

Live Chat

with Elliott Gue and Roger Conrad

On 06/27/2024

Live Chat with Elliott Gue and Roger Conrad

Top Takeaways from Q1 Results and Guidance

By |May 28, 2024|

Last month, we highlighted Q1 earnings and guidance for eight of our Actively Managed Portfolio and High Yield Energy List stocks. This issue, the Portfolio discussion looks at the other 15. Here are the big picture takeaways. All of our recommended stocks had solid business momentum in Q1 that’s carrying over to the rest of the year. Six companies raised 2024 guidance after posting Q1 numbers that were better than management expected: Energy Transfer LP (NYSE: ET), Hess Corp (NYSE: HES), Hess Midstream (NYSE: HESM), Kinder Morgan Inc (NYSE: KMI), ONEOK Inc (NYSE: OKE) and Ovintiv (TSX: OVV, NYSE: OVV)....

Endangered Dividends List

By |May 28, 2024|

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 Our Picks Fared in Q1 and What That Means for Our Returns

By |May 28, 2024|

Last month, we highlighted Q1 earnings results and guidance updates for eight EIA Actively Managed Portfolio and High Yield Energy List recommended companies. They were: Field services companies Baker Hughes Co (NYSE: BKR) and SLB Ltd (Paris: SLB, NYSE: SLB), energy producers EQT Corp (NYSE: EQT) and Hess Corp (NYSE: HES), midstream companies Hess Midstream (NYSE: HESM) and Kinder Morgan Inc (NYSE: KMI), refiner Valero Energy (NYSE: VLO) and super major ExxonMobil (NYSE: XOM). About a week later, ExxonMobil closed its acquisition with Pioneer Natural Resources—winning anti-trust approval from the US Federal Trade Commission on the head-scratching condition Pioneer’s legendary...

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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