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Staying “Sharpe”
I’m often asked why I recommend a particular exchange-traded fund (ETF), tracking a specific niche of the bond or credit markets, over another. Dozens of factors come into play including portfolio composition and concentration, credit...
Midstream M&A’s Train Picks Up Steam
Too many small owners lacking critical scale and unprecedented roadblocks to new energy pipeline infrastructure: That’s what was at the core of the unprecedented wave of US oil and gas midstream dividend cuts and bankruptcies...
Q1 Earnings Roundtable Part 3
Editors’ Note: This is the third and final edition of a series of roundtable Q&A discussions focusing on Q1 results and guidance updates from management teams for 2021 and beyond. For more individual company analysis,...
Colonial Goes Down: What it Means for Pipeline Politics
There may come a day when US transportation is 100 percent electrified and homes are heated with blended hydrogen. But in the here and now, oil and gas pipelines are essential infrastructure. Exhibit A is...
Kinder Morgan’s Benefits to Continue Flowing
The first big winner from Texas’ Great February Freeze is now revealed: Kinder Morgan Inc (NYSE: KMI). While extreme conditions hobbled rivals, the company’s intrastate gas pipelines and storage network kept running. The result was...
Pioneer Natural Resources Acquires DoublePoint
Late last week, shale exploration and production (E&P) giant, Pioneer Natural Resources (NYSE: PXD) announced a deal to acquire privately held DoublePoint Energy (DPE) in a deal valued at approximately $6.4 billion. The reception on...
The Great Texas Power Crisis
Single digit temperatures, record snowfall, millions of utility customers without service, nearly one-third of the state’s power generating capacity shut down and spiking electricity prices: That’s the damage so far from the Great Texas Power...
Pipeline Politics: We’re Guardedly Optimistic
This week, the incoming Biden administration filled out much of its prospective energy and environment team. The highlight: Former Michigan Governor Granholm to lead the Energy Department, an administrator who was instrumental ushering in a...
Why Biden’s Heat Won’t Melt Midstream
In investing, economics always wins over politics. That’s worth remembering at a time when energy midstream and pipeline companies are unloved by investors, and many advisors and media personalities forecast sector doomsday. Midstream has been...
Kinder’s Q3: Charting a US Midstream Recovery
“We are not climate change deniers and we recognize the growing momentum of renewables in America’s energy mix. That said, there is a long runway for the products we handle, particularly natural gas.” That’s a...
Energy M&A Heats Up
What do super major oil company Chevron Corp (NYSE: CVX) and leading US rooftop solar installer Sunrun Inc (NSDQ: RUN) have in common? They’re on the leading edge of a building wave of energy mergers...
Don’t Sweat DAPL: There’s Still Life in Midstream Stocks
In August 2014, the Alerian MLP Index hit an all-time high of 540, a near quadruple from the previous bear market bottom. Since then, the North American oil and gas midstream company average has dropped...
Will Kayne Anderson Make a Comeback?
“Is there an ETF or mutual fund for the stocks you recommend?” We field that question almost every month during our Energy and Income Advisor online chats. Investors’ craving for simplicity and low costs is...
Total SA: Affirming the Super Major Business Model
For decades, super major oil stocks have enjoyed a well-earned reputation for reliability and safety. Over the past 40 years, oil prices have ranged from over $150 to less than $10 a barrel. But even...
More Pain Ahead for Smaller Midstream
It’s been a week since the most recent issue of Energy and Income Advisor went to post. And already 15 more energy companies have announced distribution cuts, bringing the total from early March to 36....
Kinder’s Dividend Decision: Prudence, Not Weakness
Back in 2017, financially recovering Kinder Morgan Inc (NYSE: KMI) promised investors three dividend increases: A boost of 60 percent for 2018, followed by 25 percent hikes in 2019 and 2020. Self-funding capital spending and...
Energy Bonds Are Ripe Again
Nothing incites investor panic like a fast-falling safe haven. And from March 5-19, the iShares iBoxx Investment Grade Corporate Bond ETF (NYSE: LQD) dropped more than 21 percent. That was actually worse than 17 percent...
What’s Going On With Midstream?
Saudi Arabia’s decision last weekend to crank up production was the last straw for oil prices, already depressed by demand concerns resulting from global reaction to the spread of COVID-19. After trading in the low...
Q4 Verdict: Our Midstream Distributions are Safe and Worth Buying
A handful of North American midstream companies have yet to release Q4 results. But three key takeaways are already clear: The midstream sector stress test is well underway, with reduced oil and gas producer capital...
The Wuhan Coronavirus: Don’t Make Simplistic Comparisons to SARS
Crude oil prices and the broader stock market started out 2020 with a bang – the S&P 500 reached an all-time closing high of 3,329.62 on January 17th while West Texas Intermediate (WTI) oil prices jumped...
TRENDING TOPICS
Update – Summer Volatility: Oil, Gas and our Top E&P Recommendations
Front-month natural gas prices have endured a significant decline since late June and that’s hit shares of our favorite producers. Meanwhile, there’s been significant market...
Hess Corp and Chevron Merge: Our Thoughts
EIA Actively Managed Portfolio recommendation Hess Corp (NYSE: HES) has now officially merged with Chevron Corp (NYSE: CVX). As a result, our 40 shares of...
Natural Gas: A Summer Buying Opportunity
The front-month futures price of natural gas is down from over $4.50/MMBtu back in early March to under $3.25/MMBtu today. And, on a shorter-term basis,...
Sell Occidental, Buy Permian Resources
Last year, the value trade in energy was natural gas. NYMEX natural gas prices averaged around $2.27/MMBtu and front-month gas prices dipped well below $2.00...