We remain bullish on exploration and production companies with franchise assets, low production costs, strong balance sheets and high-quality management teams; these names stand to take market share in an environment where energy prices struggle to break out of their trading range. But investors need to buy at the right price.
The Wealth Builders Portfolio’s sole representative from the energy sector has given up only 10 percent of its value despite a 70 percent collapse in oil prices. We revisit our outlook for oil prices and explain why we see more upside to come for our lone energy pick, though investors should stay disciplined a resist the urge to overpay.
Relentless selling and fears of painful distribution cuts have made holding MLPs a painful experience this year—and several headwinds could drive further downside in the near term. But indiscriminate selling creates opportunities for discriminating investors.
Weakness in the prices of crude oil and natural gas liquids have ratcheted up the pressure on producers, prompting operators to scale back planned capital expenditures and, in some cases, slash their dividends. But the energy sector still houses some appealing options for income-seeking investors.
Despite unfavorable comparisons to America’s leading shale players, the West’s biggest oil companies remain a foundational holding in any energy portfolio for their time-tested resilience and potential upside from self-help measures.
Initial public offerings of master limited partnerships offer prospective investor a winning combination of growth and income—provided that you pick the right names. Here are two of our favorites to buy now.
Investors shouldn’t listen to claims that the world’s major oil companies have lost their luster. These lumbering giants still have a number of levers they can pull to drive upside--not to mention the resilience and financial firepower to survive the most challenging market conditions.
DISCLAIMER: Capitalist Times, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing Capitalist Times materials and websites, you agree to our Terms and Conditions of Use, available here including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.