InvestmentNews’ Post

The Energy Sector Allocation Why I Don’t Load Up on Energy In a recent post I talked about our current investments in BDCs and REITs. Anyone who has read my posts for some time probably notices that I don’t invest many dollars in energy, utilities, communication services, airlines, or precious metals. At one time I did own shares of energy companies VLO, MPC, OXY, and PSX. But I prefer to avoid individual energy or energy-related companies with a few exceptions. One reader, Matt M., asked the following question on my post about BDCs and REITs: “There are also good yields to be had in energy- I’m relatively new to the blog so I don’t know if you’ve addressed this before, but why are you not so high on that sector?” Here is my answer… #proverbs27flocks #investing101 #investing #investingtips #investingstrategy #investingforbeginners #dividendinvesting #dividendstocks #dividendgrowth #retirementincome #stocks #energy #reits

Kinder Morgan, Inc./ Liberty Energy/ SLB Q3 Conference Calls Lead Us to Open a new #naturalgas Spread Trade: A Few Key Sector Takes... Link to website: https://lnkd.in/gvmnk3xf #capitalmarkets October 19, 2024 Last week, Q3 earnings season kicked off. Since we don’t just focus on one #Energy sub-sector (like our Sell-Side counterparts) we believe we have a unique angle in identifying both ongoing and developing themes in the sector on a more streamlined basis. We believe our ‘V^2 > P’ Thesis remains in full effect for the sector after listening to KMI/ LBRT/ SLB earnings calls. Recall this is our proprietary sector theme that prefers owning: 1) Volatility; and 2) Volume over Price. This was initially just a natural gas call, but is rapidly spilling over into the crude oil & NGL side of the equation. From a positioning perspective, this remains a de-facto call of preferring 1) #Midstream and #Energy Infrastructure over 2) #Upstream. We still like select Upstream equities in pair trade scenarios (see Model Portfolio). Also, we do not believe a large-scale (performance) catch-up trade for MLPs (vs. C-Corps) is likely, or at least to the extent some are expecting it. We still see a lot of value in MLPs fundamentally. On the #commodity side we now have a natural gas spread trade on: Short NOV-24 (expires Oct-28) vs long FEB-25, with heavier sizing on the latter. Full details within. We are looking for some long nat gas exposure given our less draconian view on 1H’25 gas prices. We like low cost producers . However, our own internal pushback is: ‘If gas prices go higher, why not just own the marginal (high cost) Barnett or Haynesville player, as an example.’ This is more so from a trading perspective vs. a fundamental view. See within for full details. Timm

KYN: A Better Pipeline Summary Kayne Anderson Energy Infrastructure Fund has underperformed in the past, but its current portfolio and 15% discount to NAV are promising. Consensus estimates point to a 20% total return potential. The portfolio's 7% dividend yield is well-supported by EBITDA and reasonable leverage. KYN may be a solid beneficiary of the Fed easing cycle. Conclusion I rate KYN a BUY. From a past performance view, I would be more inclined to rate this fund a sell given performance vs. peers. However, the current portfolio seems attractive and on consensus estimates could deliver a high dividend yield (7%) and capital appreciation of 14%. While the consensus price target seems high, I assume analysts are factoring in a multiple expansion on lower rates as well as reduced debt cost that may boost EPS and DPS. This sector should benefit more than most from an easing cycle. In addition, the fund's 15% discount to NAV and leverage may add further upside. https://lnkd.in/ezttKgiM

Investing in the Canadian oil and gas sector means investing in energy companies that can and should be the suppliers of the energy demanded by our power-hungry world. Learn more: https://bit.ly/47UtmaL

"Energy Investors: Focus on Value, Not Politics!" 🛢️ Morningstar says it loud and clear—political shifts don't determine energy stock success! 📊 The key drivers are market forces and company performance. Whether it's Trump or Harris, energy growth will rely on efficiency and capital discipline, not election outcomes. 🏛️ Stay informed on what really matters for your investments. 🌍 https://lnkd.in/gg39mGAg \#EnergyInvesting \#OilAndGas \#MarketTrends \#CapitalDiscipline \#PoliticalOutlook \#InvestorTips \#Rigzone \#Morningstar

U.S. natural gas asserts its enduring affordability, underlined by historical prices achieving an unprecedented low when adjusted for inflation. The pivotal query transcends the extent of its decline; it pivots on the astute timing of a prospective resurgence. For the discerning, an investigation extends into the nuanced landscape of hedge fund activity, specifically delving into the covered positions. In the financial labyrinth, the age-old maxim echoes: 'The money which is nowhere must be somewhere.' The elusive trail beckons exploration — where did the capital, once embedded here, find its newfound sanctuary? #naturalgas #gas #commodities #energy #futures #hedgefund #markets

How do we navigate energy investing with heightened geopolitical risk and the building momentum towards the #EnergyTransition? Is North American Midstream energy the answer? 👉 https://lnkd.in/eSmBWyW2 Insights by USCF Investments' John R. Cusick, CFA and Adam Fackler, CFA.

Strong dividend trends for Midstream/MLPs continued in 1Q24, with growing payouts enhancing already attractive yields for the energy infrastructure space. Read our recap of 1Q24 midstream/MLP dividends to learn more about the positive momentum for payouts this year and beyond. Follow VettaFi for more insights! #midstream #MLPs #dividends #distributions #yields #indexinvesting #ETFs

As geopolitical tensions rise and the energy transition lingers, how are oil and gas companies planning their next moves? Find out in our latest Edge article for expert insights on capital allocation in 2025 and beyond. Read now.

BREAKING! Our Second Quarter Financials are Live!   Major highlights include: 🦋 Grew 3rd party processing volumes at Caroline, up 40% from Q1 2024 🦋 Continued to reduce field and facility operating cost structure 🦋 Produced 30,861 boe/d (85% natural gas) “Pieridae’s robust commodity hedge portfolio resulted in $19.8 million of gains, offsetting the significant challenge created by extremely low AECO natural gas prices during the second quarter. Management has also shut-in approximately 25% of the Company’s production to protect cash flow and preserve reserve value for our shareholders, until we see gas prices recover in a meaningful way.” – Darcy Reding, CEO The full release is on our website, link in comments! #PieridaeEnergy #Q2 #Financials #AlbertaEnergy