Portfolio Manager Ben Cook, CFA, shares his insights on the current state of the energy market, discusses valuations and yields for midstream companies, and details the factors that set these companies apart.
On a recent conference call, Portfolio Managers Ryan Kelley of the Hennessy Gas Utility Fund and Ben Cook of the Hennessy BP Energy Fund and Hennessy BP Midstream Fund shared their insights on the impact of the current economy on supply and demand dynamics and commodity prices for the oil and natural gas industries.
Portfolio Managers of the Hennessy Gas Utility Fund discuss how the COVID-19 outbreak affected natural gas demand, how low oil prices may benefit natural gas, valuations of Utility stocks, and the Fund’s performance and current level of dividends.
Energy is a large complex sector that accounts for just over 4% of the S&P 500 Index. The sector’s broad sub-industries can be divided into a “value chain,” each segment of which has different characteristics and offers different investment opportunities.
Hennessy Gas Utility Fund Portfolio Managers Ryan Kelley and Josh Wein discuss the growth in production and consumption of natural gas and explain why the U.S is on pace to become the world's largest exporter. They describe how infrastructure spending can drive earnings and how portfolio companies have grown their dividend over time.
Over the past decade, U.S. natural gas utility and pipeline companies have significantly increased investment in their infrastructure networks. We believe higher investment is a positive catalyst driving earnings growth for many natural gas distribution companies operating under rate of return (ROR) regulation.
In the following commentary, the Portfolio Managers of the Hennessy Gas Utility Fund discuss record levels of production and consumption of natural gas, the increase in demand for natural gas for both exportation and power generation, and the Hennessy Gas Utility Fund.
Portfolio Managers Toby Loftin and Ben Cookdiscuss the year-to-date volatility in oil prices, consolidation activity in the Energy sector, and catalysts for midstream companies. They also discuss recent portfolio changes.
Over the last five years, a difficult operating environment has hampered midstream energy companies and contributed to declines in distributions and stock prices. However, we believe that today midstream companies are at an important inflection point, poised to resume distribution growth that should attract favorable investor attention.
Natural gas has become one of America’s most important domestic energy solutions. Over the past 10 years*, U.S. consumption of natural gas has risen 28%, even though overall energy consumption declined slightly.