THIS MONTH’S ISSUE
Upcycling Energy: Strength in a Shaky Stock Market
It’s the year of natural gas. But oil’s future is bright—despite opening the year on the downside, and investor sentiment that’s become extremely negative. The bear case for prices this year basically boils down to worries about over-production and Chinese demand. And as we highlight in this month’s feature article, both are already proving well overblown—as US producers stick to shale discipline and the world’s biggest oil importer China stimulates its economy. High quality oil producers like EOG Resources (NYSE: EOG) currently offer solid value, though we like the natural gas story better this year. And that’s where our focus is now in the Energy and Income Advisor portfolio. Soft oil prices have also recently put the brakes on what had been torrid upside momentum for leading midstream stocks. That’s despite the fact sector growth is now heavily leveraged to natural gas infrastructure expansion, which is booming. And oil pipelines are mostly contracted on a capacity basis, so midstream owners get paid regardless of where oil prices are or how much is shipped. Midstream should return to the upside later this year. And in the meantime, investors should take advantage of any dips in our favored stocks to add to...
Live Chat
with Elliott Gue and Roger ConradOn 03/26/2025
It’s the Year of Gas, But There’s Value in Oil
More than 200 years ago, London-based financier Lord Rothschild said: “Buy to the sound of cannons, sell to the sound of trumpets.” The quote may well be apocryphal, but in our experience the sentiment holds true, particularly for commodity markets. The best time to buy a commodity like oil is when market participants are most fearful and the time to sell is when they’re cheering, confidently predicting ever-higher prices or hyping up the latest geopolitical narrative. Here at Energy and Income Advisor, we’ve seen, lived, and invested through multiple cycles in crude oil prices. A six-year long bear market in...
Beware the Siren Call of High Shipping Yields
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...
Our Picks are Looking Good in 2025
First to report Q4 earnings and update 2025 guidance were Baker Hughes (NYSE: BKR), ExxonMobil (NYSE: XOM), Hess Corp (NYSE: HES), Hess Midstream (NYSE: HESM), Kinder Morgan Inc (NYSE: KMI), SLB (NYSE: SLB) and Valero Energy (NYSE: VLO). Next up were Alliance Resource Partners (NSDQ: ARLP), Energy Transfer LP (NYSE: ET), Enterprise Products Partners (NYSE: EPD), MPLX LP (NYSE: MPLX), Plains GP Holdings (NYSE: PAGP) and TC Energy Corp (TSX: TRP, NYSE: TRP). Now results are all in for the rest of the portfolio holdings. Here’s the wrapup of the rest: • Black Stone Minerals (NYSE: BSM)—Buy<16 The natural gas weighted royalty production MLP’s value...
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.
