Energy is a large and complex sector. 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.
For investors looking to position their portfolio to counter rising inflation, midstream energy companies may offer a number of key advantages.
For more than a 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.
The Portfolio Managers of the Hennessy Gas Utility Fund discuss the role of natural gas during the recent extreme cold weather event, the demand dynamics of natural gas since the pandemic started, infrastructure and modernization programs, and the growth of the global liquefied natural gas (LNG) market.
Portfolio Manager Ben Cook, CFA discusses his thoughts on the Energy sector in 2021, the effect of a Biden administration on the industry, renewable energy, and midstream companies’ valuations.
Portfolio Manager Ryan Kelley, and American Gas Association (AGA) executives Gary Gardner, Vice President of Corporate Affairs, and Richard Meyer, Managing Director, Energy Markets, shared their insights on the natural gas industry as well as investment opportunities.
Over the last decade, strong growth in production has allowed the U.S. to become a net exporter of natural gas. Both liquefied natural gas (LNG) exports and pipeline exports to Mexico have been growing rapidly, and significant further growth is forecast.
Midstream energy companies have long been attractive to yield-seeking investors. With historically low valuations and the potential for stock buybacks and rising payouts, now may be an extremely opportune time to consider adding exposure to the sector.
The Portfolio Managers of the Hennessy Gas Utility Fund discuss natural gas and electricity demand dynamics, the increased interest in renewable energy, and why utilities, with growing dividends and earnings, present an attractive investment opportunity.
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.