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May 2025 Capitalist Times Live Chat
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AvatarRoger Conrad
5:49
Continuing with Arthur's question, we track Chord and Keyera Facilities in the Canada and Australia coverage universe on the EIA website. Keyera is a buy at USD30 or less for steadily growing dividend tied to asset expansion. But i think the end game is probably a takeover. Ensign Energy Services is a hold and also tracked in the Canada coverage universe. We see services as a later bloomer in this cycle and at this point are sticking to the best of the biggest BKR and SLB.
Randy D
5:52
I  ran across an online article the other day where they were comparing Energy Transfer ET to Plains PAA/PAGP.
I was especially intrigued by PAGP because it does not issue a K-1 and I could hold it in an IRA account. However, when I look at my brokerage account's technicals page, they said these things about PAGP:  

PAGP appears to be rallying within a longer-term bearish trend

Momentum for PAGP is strongly bearish

The On Balance Volume indicator (OBV) is bearish

The technicals page for Energy Transfer didn't have anything bad to say about them. 

Do you put much credence in technical analysis? And do you think that Energy Transfer would be the better buy here even though the distribution is over a point higher with PAGP?
AvatarElliott Gue
5:52
I use technical analysis frequently, but I don't put much stock in these automatic or Artificial Intelligence (AI) driven technical narratives you see on brokerage websites and various other places online. I also don't use many indicators like OBV in my technical work. We like both names fundamentally however we rate PAGP as Aggressive and ETF as Conservative; generally, you'll see riskier/more aggressive MLPs offer a higher yield than more conservative/steady names like ET.
Dan E
6:00
Hi Roger, concerning AES, is the stock price of $9 getting close to what the three utilities are worth? Could they do a spin out of utilities to enhance shareholder values?  Thanks for your thoughts Dan
AvatarRoger Conrad
6:00
Hi Dan. AES is actually back up over $10 today. But yes, I think the stock is quite cheap at 4.6 times the mid-point of 2025 earnings per share guidance that was reaffirmed earlier this month. They did recently sell a 30% interest in AES Ohio to a Canadian pension fund, which will now co-fund utility capital spending. I doubt they'll sell more of that utility unit or the utility in Indiana, which has the same pension fund as a 30% financial partner. They might sell a share of their contracted renewable energy generation business that they continue to expand.

I think until there's clarity on wind and solar tax credits in the US that there will be a cloud hanging over the stock. And the prospect of a global recession appears to be another concern. But as I've said before, this is not the AES of 20 or even 10 years ago. And so far at least, they're sticking to guidance growth that's at the top of the industry and backing it with real numbers and orders.
AvatarRoger Conrad
6:45
OK. Well that looks like all we have in the queue for this month. We'd like to once again thank everyone who joined us today for their comments and questions. If your question was not completely answered, please drop us a line at service@capitalisttimes.com and we'll get to it as soon as we can.
6:46
We will be sending you a link to a transcript of the complete Q&A tomorrow morning. And it will also be posted on the CUI and EIA websites as well.
We do appreciate your business and we look forward to chatting with you again next month! Have a great evening.
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