"As partnerships, MLPs pass through the majority of their income to investors in the form of regular distributions; the average MLP currently yields about 6 percent," observes eneergy sector expert Elliott Gue.
The editor of The Energy Strategist explains, "QR Energy LP (QRE) debuted as a publicly traded master limited partnership on Dec. 17, 2010.
"QR Energy owns upstream assets from which it produces oil and natural gas. Oil and natural gas liquids account for about 70 percent of the outfit's reserves (29.7 million barrels of oil equivalent) and production (5,184 barrels of oil equivalent per day).
gas stocks posts
FeedQR Energy (QRE): A New Buy Among MLPs
National Grid (NGG): Defensive Income
"National Grid (NGG), an electricity and natural gas transmission and distribution utility, is a low-risk, income-generating idea," suggests income expert Carla Pasternak.
The editor of High Yield International explains, "Based in London, the company's largest market is still the UK, and it holds a virtual monopoly on the electricity transmission grid in England and Wales.
"Its primary business is to balance the supply and demand of electricity and natural gas and transmit that power from producers to customers across its network of high-voltage transmission wires and natural gas pipelines.
Natural Gas Service (NGS): Gas Field Gains
"I am getting more interested in natural gas; we all realize that crude oil production is peaking and that new discoveries are deep, dangerous to exploit, and bottom line expensive," says resource expert Curtis Hesler.
The editor of Professional Timing Service explains, "Investors can consider Natural Gas Service Group (NGS), a natural gas field equipment provider that I am adding to our recommended list.
"While technology is improving in wind and hydroelectric generation, perhaps the greatest technical strides are being seen in natural gas production.
Top Picks 2011: MDU Resources (MDU)
This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.
"Even among great companies, one year's leader is often the next's laggard and vice versa; MDU Resources (MDU) is one under-performer that looks increasingly likely to get it's legs back in 2011," says utility stock specialist Roger Conrad.
The editor of The Utility Forecaster explains, "The company is best thought of as a financially conservative resource company, whose cash flows are anchored by solid regulated energy assets.
Top Picks 2011: Range Resources (RRC)
This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.
"Our top pick for 2011 is natural gas producer (RRC), which is on our recommended buy list," says Geoffrey Seiler.
The editor of BullMarket.com explains, "With natural gas prices depressed, we think now is the time to buy low, and Range is one of the best-positioned companies in the natural gas sector, both in terms of growth, assets, and being a low-cost producer.
Ferrellgas LP (FGP): Propane Partnership
"Ferrelgas Partners LP (FGP) is a propane distributor whose dividend history and underlying business seem to offer the promise of a secure income stream," notes Marvin Appel and Josh Mandelbaum.
In Systems & Startegies, the advisors explain, "Ferrellgas is the second largest retailer of propane in the U.S. and the largest tank exchange company. The partnership has a 16-year history of paying $2.00/share. This represents a yield of 8.2%.
Gas gains with Nabor's (NBR)
"The US natural gas storage cycle is fairly straightforward: More gas is consumed in winter than in summer because natural gas is a key source of heat," explains Elliott Gue.
In his industry-leading The Energy Strategist, the energy sector specialist makes a bullish case for natural gas as well as contract driller Nabor's Industries (NYSE: NBR).
"The year started off with gas storage levels falling in line with the average. In late February or early March that all changed: Storage levels jumped and eventually broke to a new five-year high.
TransCanada (TRO): Natural gas is a 'screaming buy'
"Our focus this summer remains on building positions in the bombed-out natural gas market; there's no other commodity this depressed, this unwanted and trading at such distressed levels," says resource expert Eric Roseman.
In his industry-leading, The Commodity Trend Alert, he explains, "Indeed, the bombed-out natural gas sector is screaming 'buy'." Here, he looks at TransCanada Corp. (NYSE: TRP).
"The way prices have been heading over the last several months you'd think the world doesn't use this clean-burning fossil fuel anymore.
"Natural gas prices remain 70% off their 52-week high and more than 75% below their all-time highs almost four years ago when Hurricane Katrina smashed the Gulf of Mexico.
Continue reading TransCanada (TRO): Natural gas is a 'screaming buy'
Turnaround for Williams (WMB): Pipeline profits
"Despite coming close to bankruptcy in 2002, Williams Co. (NYSE: WMB) has some of the premier assets in each of its business segments: exploration & production, mid-stream and pipelines," says turnaround expert George Putnam.
In his The Turnaround Letter, he explains, "The company now has the financial strength not only to survive the current downturn but to grow and prosper."
"Begun in 1908 as a pipeline construction company, Williams is now a major, integrated natural gas company; it produces, gathers, processes and transports natural gas throughout the United States.
Continue reading Turnaround for Williams (WMB): Pipeline profits
Kennametal (KMT): A 'Kenneth Fisher' guru play
In his Validea newsletter, John Reese selects stocks using the investment strategies of the market's leading gurus, such as Benjamin Graham, John Neff, Warren Buffett, David Dreman, and Peter Lynch.
The advisor, and author of the just-published The Guru Investor, recently ran a screen based on the investment strategy of Kenneth Fisher to find his latest buy recommendation -- Kennametal (NYSE: KMT).
Reese explains, "For decades, the price-to-earnings ratio has been the most widely used valuation measure for stock investors, and a key tool in the arsenals of many of the gurus I follow. ut in 1984, Kenneth Fisher sent a shockwave through the P/E-conscious investment world.
Continue reading Kennametal (KMT): A 'Kenneth Fisher' guru play
Top Stock Picks '09: ProShares Ultra Oil & Gas (DIG)
This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"ProShares Ultra Oil and Gas (NYSE: DIG), my top idea for 2009, is an exchange-traded fund that positions itself with the performance of the United States' top oil and gas companies," says growth stock specialist Paul Tracy.
In his StreetAuthority Market Advisor, he explains, "The 'ultra' part of its name means that the fund uses leverage, which magnifies returns by a factor of two relative to the Dow Jones U.S. Oil & Gas Index."
The advisor continues, "DIG is a leveraged ETF. In short, for every 1% the U.S. Oil & Gas Index rises, DIG should rise 2%. That means the performance of DIG is dictated by the moves of the largest industry heavyweights like ExxonMobil, ConocoPhillips, and Chevron.
"In addition to integrated oil companies, DIG is also exposed to major oilfield service companies like Schlumberger and Halliburton and gas-industry leaders like Apache.
"The world simply cannot, in its current form, live without fossil fuels. Global demand for petroleum is roughly 85 million barrels of oil a day, which means the activity in the oilfields simply never stops.
Continue reading Top Stock Picks '09: ProShares Ultra Oil & Gas (DIG)
Top Stock Picks '09: Fortis (FTS.TO)
This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"If you're looking for a low-risk stock that's held up well in this dizzying market spiral, here it is: Fortis Inc. (TSE: FTS), my top pick for 2009," says Gordon Pape in The Canada Report.
"Fortis is trading at about the same level now in Canadian dollar terms as it was in early September. How many companies can say that?
"Don't confuse this with the troubled European financial giant of the same name. This Fortis is the largest investor-owned gas and electric distribution utility in Canada. Its regulated holdings include a natural gas utility in British Columbia and electric utilities in five Canadian provinces and three Caribbean countries.
"Third-quarter financial results were very strong and beat analysts' forecasts. Fortis reported net income of $49 million ($0.31 per share) compared to $31 million ($0.20 per share) in the same period of 2007 (figures in Canadian dollars). Year-to-date earnings were $169 million ($1.08 per share) compared to $114 million ($0.86 a share) for the first nine months of 2007.
W&T Offshore (WTI): Drilling with David Dreman
"We are moving headlong into oil," notes John Reese, who analyzes stocks based on the criteria used by "legendary" investors such as Buffett, Graham and Lynch.
In his Validea newsletter, he says, "My fundamental models indicate that the oil industry is where the best values in the market are." Here's a look at W&T Offshore (NYSE: WTI), which is based on the criteria used by contrarian David Dreman.
"The economy and stock market have gone through a legitimate crisis because of the credit woes, and it takes time for something like that to work itself out.
"But the important thing to remember is that we've been through financial crises before -- even bad-debt financial crises like this one -- and the market has always stabilized and then pushed higher.
"And history has shown that those who can stick with the stock market through down times like these will be rewarded.
"David Dreman -- one of the gurus I base my strategies on -- notes in his recent Forbes column, 'If you pack up now, chances are you'll miss a good part of the next bull market. A large part of the gains are always made in the first few months of one, when market-timing investors are still on the sidelines.'
Continue reading W&T Offshore (WTI): Drilling with David Dreman
Helix Energy Solutions (HLX): A 'Best Buy' in energy
"First recommended in September 2004, Helix Energy Solutions (NYSE: HLX) is the oldest holding on our Buy List - and the biggest winner, gaining 133%," notes Richard Moroney.
Here, the editor of Upside explain, "Considering its bright profit-growth prospects, reasonable valuation, and impressive Quadrix scores, Helix remains among our very best ideas and a top pick in the oil patch."
"Helix serves energy producers worldwide, providing such contract services (36% of total revenue for the nine months ended September) as deepwater pipe-laying, well operations, robotics, and reservoir services.
"The shelf-contracting business (34%) consists of 59%-owned Cal Dive International (NYSE: DVR), a provider of dive-related and shallow-water construction services.
"The fast-growing oil and natural gas production business (30%) focuses on marginal, mature, and smaller fields - properties no longer significant or viable for large energy companies. Fueled partly by high energy prices, petroleum companies are increasingly targeting mature and small reservoirs.
Continue reading Helix Energy Solutions (HLX): A 'Best Buy' in energy
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