Although he has been maintaining a cautious stance on the refining group, energy sector expert Elliott Gue is now boosting the rating on Valero Energy (NYSE: VLO).

In his The Energy Strategist, the advisor explains, "Valero is now attractive for three reasons: superior geographic exposure, refinery complexity and a new focus on profitability."

"Our caution on the refining group was due to expectations that crack spreads would be weak through the spring, a period during which spreads tend to widen. Overall, this call was correct: Refiners have underperformed the energy patch since mid-March.

"And longer term, I have some concerns about new refining capacity expansions due to come online over the next few years. As this supply comes online, it could put downside pressure on margins.

"But over the next six to nine months, the refiners look like a compelling play. Gasoline inventories are now back in line with seasonal norms; it's likely gasoline prices will now rally further relative to crude oil. In fact, we're already seeing an obvious spike in crack spreads.

Electric utility Duke Energy Corporation (NYSE: DUK) is getting ready for a December road show to help institutional investors understand the upcoming spin-off of its regulated operations and the creation of a master limited partnership.

While seemingly complex at first glance, Elliott Gue, editor of The Energy Strategist, gives investors a heads-up on what to expect. Indeed, he sees opportunity for those willing to buy the shares now, as he expects the sum of the parts will be worth more than the current whole.

Duke offers electricity services to 5.5 million customers across the Carolinas, Ohio, Kentucky and Indiana. But, notes Gue, it is "a good deal more than just a utility company." The firm also owns some 17,500 miles of natural gas and natural gas liquids pipelines, making it one of the largest gas pipeline, storage and processing firms in the U.S.

Duke will be separating its business into two parts: