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.
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.
Energy is a large complex sector that accounts for just over 5% 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.
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.
Portfolio Managers Toby Loftin and Ben Cook discuss growth prospects and the outlook for distribution and dividend growth for midstream companies. They also outline how the Fund’s holdings are poised to benefit from rising global energy demand.
In the following commentary, Portfolio Manager Ryan Kelley discusses the drivers behind the strong growth in the natural gas market in 2018, how tight inventories might cause more volatility in the gas price and the outlook for continued growth in natural gas exports.
Portfolio Managers Toby Loftin and Tim Dumois discuss the Fund’s correlation to oil prices, how energy companies are responding to shareholder preferences, and the outlook for energy markets.
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.