Feature Article
De-Risked Kinder Morgan Is Ripe for Purchase
By
Roger S. Conrad on
Jun. 11, 2018
Successful big pipeline projects move the profit meter in the energy midstream business. But when they go wrong, they can quickly diminish a developer’s growth and financial health.
That was the growing risk to Kinder Morgan Inc (NYSE: KMI) before it sold its Trans Mountain pipeline and expansion project to the Canadian government. Now management has CAD6.4 billion in saved capital expenditures as well as CAD4.5 billion in sales proceeds to invest in a wide range of potential projects. And that’s in addition to $12.7 billion of backlog already in development, targeted to produce $1.7 billion of additional EBITDA by 2021.
This Blue Chip Is Back in Range
By
Roger S. Conrad on
Jun. 11, 2018
Sempra Energy (NYSE: SRE) is the latest blue chip utility on our long-term target list to slip back to a buying range. This month, we’re adding the stock to the Conservative Holdings.
Sempra’s business strengths are legion. On March 9, the company succeeded where Warren Buffett failed, closing on the former Texas Utilities’ regulated electricity transmission and distribution assets. The deal brought its regulated global utility customer base to over 43 million, including San Diego G&E, Southern California Gas and 6 million users in Chile and Peru.
Strategy: The Art of Buying Low
By
Roger S. Conrad on
Jun. 11, 2018
Everyone wants to buy low and sell high. But in practice many investors do the opposite, particularly with daily stock market trading dominated by exchange traded funds and algorithmic investment strategies.
For us, this means opportunity. Specifically, we’re able to buy high quality essential services companies at the lowest valuations in many months.
Enbridge Eats Its Young
By
Roger S. Conrad on
Jun. 11, 2018
Enbridge Inc (TSX: ENB, NYSE: ENB) is buying the remaining common units of the two US MLPs it controls: Enbridge Energy Partners (NYSE: EEP) and Spectra Energy Partners (NYSE: SEP).
It’s a good deal for the acquirer, which is buying these assets for barely 7 times cash flow. Absorbing the regulated natural gas and oil pipelines should dodge a possible Federal Energy Regulatory Commission-mandated rate cut. And management has affirmed three-year earnings guidance while promising faster growth after 2020.
Utility M&A Heats Up: 3 Ways to Bet
By
Roger S. Conrad on
Jun. 11, 2018
Mergers and acquisitions have been part of the landscape for as long as utilities and essential services have been around. And remarkably, not one deal has failed to create a stronger company.
A Rare 9 Percent Yield With Safety Credentials
By
Roger S. Conrad on
May. 6, 2018
For the first year since 2005, propane distributor Amerigas Partners (NYSE: APU) didn’t raise its quarterly distribution. Rather than a sign of weakness, however, management’s decision secures the already generous 9 percent plus yield and may have set the stage for shares to break out of an 8-years plus trading range.
Canada’s Communications Champion Going Cheap
By
Roger S. Conrad on
May. 6, 2018
BCE Inc (TSX: BCE, NYSE: BCE) shares have touched a new 52-week low this month. Fortunately, the weakness is due to interest rate worries and a slide in the Canadian dollar as the core business remains strong. And the result is a buying opportunity for this Conservative Holding.
Compelling Opportunities For Dangerous Times
By
Roger S. Conrad on
May. 6, 2018
Depending on what you own, this might not feel like much of a rally. But the Dow Jones Utility Average closed this week up nearly 10 percent from its early February lows. And while the Average is still nearly -10 percent below the all-time high reached in mid-November, at three months and counting the uptrend is getting investors’ attention.
Telecom Values and Value Traps
By
Roger S. Conrad on
May. 6, 2018
Strong business fundamentals, low measures of standard valuation and a generally weak technical picture: Those are the basic traits of a “value” stock, known in some circles as a contrarian bet.
Moving Closer to the Edge
By
Roger S. Conrad on
May. 6, 2018
SCANA Corp (NYSE: SCG) won’t declare its June dividend until “closer to record date”. That’s the closest Conrad’s Utility Investor coverage universe companies have come to a payout cut this earnings season. But several are definitely on the edge.
MODEL PORTFOLIOS & RATINGS
Aggressive Income Portfolio
Roger's favorite utilities for investors seeking superior price appreciation by taking calculated risks.
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Harness the tried and true wealth-building power of rising dividends.
Top 10 DRIPs
Nothing compounds wealth like reinvesting a rising stream of dividends.
Endangered Dividends List
Warning: Falling Dividends.
Utility Report Card
Roger's current take and vital statistics on more than 200 essential-services stocks.
Conrad's Utility Investor
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