Utility Roundup

What we learn from sector-wide trends is not just key to investing in Kinder Morgan Inc (NYSE: KMI), but to the entire North American energy midstream sector.

How many companies can one private capital firm successfully take on all at once? Paul Singer’s Elliott Management seems determined to find out.

The strong US dollar, worries about slowing global growth and disruption from uncertain politics and trade policy: That trio of entrenched trends continues to fuel investor appetites to “buy American,” dividend-paying stocks of US-based companies that generate all or mostly all of their sales within our borders.

Despite good news, several essential services companies have seen a 10% drop so far in 2019. The reason: politics. Our view for some of them is investors are over-estimating risks and underpricing their strengths.

A baker’s dozen Portfolio companies hadn’t reported second quarter earnings when the August CUI issue went to post. In this special report, I wrap up their highlights, outlooks and what to do now.

Wall Street consensus is the U.S. Federal Reserve will officially close the book on three-and-a-half years of monetary tightening next week, by cutting its benchmark Federal Funds interest rate. But our focus needs to be on earnings and guidance, not headlines.

It seems California Governor Gavin Newsom will not preside over a utility collapse as former Governor Gray Davis did almost 20 years ago, thanks to a legislative fix to state utilities’ bottomless liability for wildfire damages.

Almost 20 years ago, dysfunctional rules for California’s unregulated power market drove the state’s two biggest electric utilities into bankruptcy and impacted the entire sector. This year, the "inverse condemnation" rule has triggered one bankruptcy filing and may push the state's other electric utilities' ratings toward junk.

Get big or go home: The "Big Four" will likely soon become the "Big Three."

First quarter results are in for US Telecom’s Big Two. The most important takeaway by far: Both companies remain on track with financial results, long-term strategy and building long-term shareholder value.