You are viewing the chat in desktop mode. Click here to switch to mobile view.
X
Return toCapitalist Times
April 2025 Capitalist Times Live Chat
powered byJotCast
Prev Page View Full Chat
AvatarRoger Conrad
5:44
Good questions Dan.
Gary Simmons
5:54
You mentioned earlier that you expect additional US nuclear plant shutdowns.  How is that possible?  We don't have enough as it is.
AvatarRoger Conrad
5:54
Hi Gary. The US fleet of nuclear power plants is aging. Consolidation of ownership has improved operating rates and sharply reduced outage times--as lessons at one plant can be applied at another. And plants that once range at 60-65% of capacity now run at 95% and up. But the cost to keep them running continues to rise--replacing equipment, increasingly scarce labor, etc. So on a straight up basis, it's increasingly cheaper to replace them with a combination of new natural gas, solar, wind and battery storage. CMS Energy, for example, was able to cut customer bills in Michigan substantially by not renewing a power purchase agreement with the Palisades plant earlier in the decade.

To keep plants open, states now pay facilities "zero emission credits." And the 2022 IRA granted billions of annual subsidy. As a result, people are talking about reopening plants instead of shutting operating ones. But it's safe to say that without tax credits more owners would elect to shut facilities to avoid losses.
AvatarRoger Conrad
5:56
Continuing with Gary--my view is subsidy will be extended for operating nuclear power plants, as well for re-opening old ones. And it certainly looks like there's a consensus between Democrats and Republicans in the US to invest in new nuclear including SMRs--despite the current lack of a commercially proven model. But US nuclear needs subsidy, probably as much as the nascent hydrogen and carbon capture projects do.
Don C.
6:01
Roger—would this be a good time to add to my modest holdings in Dominion Energy (D)? I have larger holdings in NEE and DUK. Thanks to you and Elliott for holding these helpful chats.
AvatarRoger Conrad
6:01
Hi Don. Thank you for participating today. At this time, Dominion is a strong recommendation as well as personal holding. The company is expected to announce Q1 earnings and update guidance in the next few days. The safest course would be to wait until then to add to holdings--or otherwise to add in increments.
Susan P
6:09
You're both like encyclopedias with your knowledge. Thanks for sharing it via the chat and through your various services.  As you've both said, ET's drop in price has made it an appealing holding for additional investment. I also own EPD, KMI, DTM and MPLX. The later has held up relatively well compared to its peers. Any thoughts for MPLX's relative resiliency? Thanks again for your hard work.
AvatarRoger Conrad
6:09
Thanks Susan, and thank you for your questions today. MPLX is heavily owned by its parent Marathon--so that's tended at least recently to support the stock. The core business is also very stable and tied to Marathon's and the yield is still quite high relative to other midstreams including MLPs, which I think also keeps people from selling on bad days. I'm very interested in earnings that have been confirmed for May 6. Maybe we'll see an opportunity to buy under 50 as we did earlier this month.
Jon B
6:13
Hi, on the chance you are still going, how insulated is PAA/PAGP from the impacts of low oil prices and perhaps reduced drilling in the Permian? Thanks.
AvatarRoger Conrad
6:13
Hi Jon. Plains is one of the more volumes sensitive midstream companies, which is why we've talked about it as being a more aggressive investment than say Enterprise Products Partners. I think the dividend is at far less risk than it was, for example, in early 2020 or mid-2017--mainly because Plains has been cutting debt and focusing its CAPEX on places like the Permian Basin where low costs and consolidated ownership have kept production levels steady. And I expect a pretty steady report for Q1 and updated guidance May 9. But so far as being "insulated" from a real Permian Basin slowdown--which I would still consider unlikely at this time--Enterprise is much better protected by virtue of long-term contracts with a who's who of energy companies--and leverage to exports.
AvatarRoger Conrad
6:15
Ok. Well that looks like all we have today in the queue as well as from emails we received prior to the chat. If for any reason your question was not fully answered, please drop us a line at service@capitalisttimes.com and we'll get back to you as soon as we can.
6:16
As always, we'll be sending you a link to a transcript of the complete Q&A tomorrow morning. And it will also be posted on the Energy and Income Advisor and Conrad's Utility Investor websites.
6:18
Speaking on behalf of all of us at Capitalist Times, we truly appreciate you joining us today, and especially your business. And we look forward to chatting with you again next month.
RBB
6:18
Thanks for an informative afternoon. Take care.
AvatarRoger Conrad
6:18
Same to you! Thank you!
AvatarRoger Conrad
6:19
Have a great evening everyone!
Connecting…