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AvatarRoger Conrad
9:10
Q. Roger:  I enjoyed the video you posted on your EEI trip.  As you were
going through the company names on your list you skipped Fortis.  If
there is any substantive update on this name please include the
information in the upcoming live chat.  I bought FTS on your
recommendation several years back at about 26. Also holding Algonquin and AES successfully--thanks.

While not on the CUI list of companies, could you comment on Diamond back Energy (NSDQ: FANG). I am holding this over from the Energen days and thought it might be a good hold but now it seems to be circling the drain.  Could you post a recommendation for holders during the live chat?
Best.--Jimmy C
9:11
A. Jimmy, sorry for leaving out Fortis. I did answer a question on the company earlier in the chat and the stock has crossed under my buy target of 40, at least for the time being. I think they’re a solid value proposition with a lot of places to grow (solar, high voltage transmission, Canadian midstream) and are on track for mid to upper single digit dividend growth off the current yield of 3.6 percent—a solid value proposition.

I still own Diamondback as well, also from the Energen days. I still think the merger was a great outcome for us. But obviously, concerns about Permian Basin oil drilling economics have taken a bite out of the share price, along with the fact that this company doesn’t expect to be free cash flow positive until next year. At that point, free cash flow will cover the payout by roughly 5-to-1, providing cash to start paying back debt. And there’s been no dimming of the prospects for the company’s properties and drilling success, despite neighboring well interference from other
companies that affected Q3. I will be watching to see what happens between now and when fourth quarter results are announced in mid-February. But at this point, I’m hanging in there.
9:12
OK. Well that's all I have in the queue as well as from emails I received prior to the chat. So I guess that's a rap for this time.
9:23
Before I sign off, a couple of notes.

First, there were many questions on energy stocks. That’s 200 percent understandable given the carnage we’ve seen, especially the past couple months.

But while I was happy to answer anything thrown at me, I really do encourage all of you interested in energy and energy stocks to join us on Tuesday afternoon at 2 pm for the Energy and Income Advisor live chat. I’ll be joined on that one by my partner Elliott Gue and I think the answers you’ll receive will be that much more complete and comprehensive.

Second, I noticed a lot of interest in the non-utility names in our CUI Plus Portfolio. This is a separate service from both Conrad’s Utility Investor and Energy and Income Advisor.
It’s not for everyone. But if you would like to see my high-income favorites in sectors outside of energy and essential services utilities, I’d really encourage you to check it out, by giving my good friend and our customer service director Sherry Roberts a call at 877-302-0749, 9-5 pm ET, Monday through Friday.

Finally, if for some reason you feel I didn’t answer your question thoroughly, please drop me a line at service@capitalisttimes.com

Thanks again everyone for participating in this chat, whether you typed in a question, listened in, or you’re just reading the transcript now. Your feedback is invaluable to my efforts to make Conrad’s Utility Investor the best advisory it can be.

Have a great holiday season!
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