67 WALL STREET, New York - July 10, 2013 - The Wall Street Transcript has just published its 2013 Oil & Gas Review. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Low Treasury Yields and MLP Dividends
Companies include: Walt Disney Co. (DIS), American Tower Corp. (AMT), Boeing Co. (BA), Chesapeake Energy Corporation (CHK), Devon Energy Corporation (DVN), Union Pacific Corp. (UNP) and many others.
In the following excerpt from the 2013 Oil & Gas Review, Ian Mausner, a Co-Founder, Chief Executive Officer and Senior Portfolio Manager for J.S. Oliver Capital Management reveals his investment methodology and top picks:
...that, combined with extremely low interest rates, with very reasonable valuations, with increasing dividends, with increasing mergers and acquisitions, with increasing stock buybacks and the best corporate balance sheets that we've seen in our lifetimes, and significant underinvestment on the part of both institutions and individuals and a healthy dose of skepticism everywhere - it's really almost as good an environment as you can imagine, in our opinion. We see the next five or 10 years as being perhaps another "golden era" for the United States. The thing we probably like the most about that is we're in a real minority, a very, very small minority of people that have such a positive outlook at this point in time.
TWST: To what extent, then, are you incorporating energy-related investments in your funds and portfolios?
Mr. Mausner: The main focus that we have energywise is on natural gas, and the reason for that is that it's at 25-year lows. It has bounced recently about 50%, 60%, but it's come down very, very dramatically because technology has enabled vast discoveries of natural gas both here and abroad. The supply exploded over the last couple of years, and even though demand also increased, it didn't keep track at all with supply, and so the price got absolutely annihilated.
We think now is an extremely attractive time. We think the time horizon's anywhere from two years to five years, because it does take a while for people to convert, whether it be vehicles or homes or trucks or railroads, etc. But the conversion is happening, because gas is so much cheaper than oil, number one; number two, it's much, much more clean-burning; and number three, we have the largest reserves in the world in the United States. Those are three very compelling reasons for both companies and individuals to make that conversion, and it's happening.
You read about it almost every day. Union Pacific (UNP) just announced that they are going to convert most, if not all, of their engines from coal burning to natural gas...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Utility Industry
- Natural Gas Liquids
- Chesapeake Energy Corporation