Energy Investing

Top 5 Midstream Companies for This Energy Crisis

Top 5 Midstream Companies for This Energy Crisis

From the 1980s until crude oil crashed in 2015, the master limited partnership (MLP) structure dominated energy midstream—your gathering, pipeline, processing, and storage companies. Midstream revenues come from committed fee structures and are very predictable and MLPs pay tax-advantaged distributions, so the structure can be very profitable for the sponsor/general partner/owner. But many investors don’t […]

Beat the Market with These 5 “Stock Cannibals”

Beat the Market with These 5 “Stock Cannibals”

In 2016, renowned value investor Monish Pabrai developed a simple concept called “Uber Cannibals.” He suggested that buying a five-stock portfolio of companies that were buying back large amounts of their own stock, that were cheap based on undefined valuation multiples, and that fit his definition of quality, would outperform the market.I have discussed many […]

A lot of cash US dollars.

Why I love Dividends – and Stock Buybacks, Too

Like everybody else, I love dividends. Always have and always will. I am also a big fan of stock buybacks. I get a kick out of the endless debate about stock buybacks. They are neither good nor bad in and of themselves. Stock buybacks are fantastic at low valuations with funds generated by the business. […]

pipeline connection  from crude oil field

The #1 Stock for the World’s Energy Crisis

There has been a series of flawed assumptions followed by lousy planning from the governments of the world as they have continued their push to reduce carbon emissions by replacing current energy sources with renewables, primarily wind and solar. This discussion will not take the path you may be imagining. The enormous and wrong assumption […]

Oil Dividends Gusher Continues

Oil Dividends Gusher Continues

On August 24, we had confirmation of what I’ve been saying for a while now: energy is the place to invest if you’re looking for dividends, specifically oil dividends. As Reuters reports: “Energy companies reaping record profits from soaring oil and gas prices have helped global dividend payments to shareholders soar above pre-pandemic levels and […]

The Best Play on the Shrinking MLP Universe

The Best Play on the Shrinking MLP Universe

The DCP Midstream (DCP) buyout offer earlier this month marked another master limited partnership (MLP) coming off the board. Over the last eight years, the number of publicly traded midstream MLPs declined by 74%. Here’s what that means for investors, especially those who like the tax-advantaged, high-yield income from MLPs… On August 18, Phillips 66 […]

What’s The Reasoning Behind This Massive Energy Trade?

What’s The Reasoning Behind This Massive Energy Trade?

Unusual options activity placed Energy Select Sector SPDR ETF (XLE) into the spotlight last week. It turns out a massive options trade of 150,000 contracts traded in a spread, with about $16 million of capital required. This one trade accounted for nearly half the options traded on the day. It appears the position may be […]

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This Shale Pioneer Refocusing on Natural Gas

Forget oil—the real money is in natural gas. Or at least that’s the message coming from a pioneer of the U.S. shale revolution, Chesapeake Energy (CHK). From Prince to Pauper to Prince Again? Once upon a time—when its stock was valued at more than $35 billion and its CEO, Aubrey McClendon, had the biggest pay […]

Oil Service Companies’ Gusher

Oil Service Companies’ Gusher

I continue to love the sector Wall Street seems to hate: energy. Analysts are saying oil has peaked and bad times are directly ahead for the sector. I believe that oil markets are more fragile than the recent price decline might signal. The same factors that sent energy prices higher over the past year remain […]