Ben Cook, CFA, Portfolio Manager, Provides an Energy Sector Update

By BP Capital Investment Team - February 23, 2021

Year to date gains across the energy sector reflect an improvement in fundamentals and portend well for further gains supported by both cyclical and secular drivers that should persist through the remainder of the year.

Key highlights from the sector update include: 

  • Covid-19 vaccination is picking up pace, and we see that building confidence to gradually normalize economic activity. U.S. GDP should show considerable expansion during 2021.
  • OPEC market stabilization efforts combined with measured activity improvements in the U.S. should set the stage for stable and rising commodity prices during 2021, a cyclical commodity rebound is underway.
  • Renewables represent a rapidly growing segment of the energy sector that will continue to flourish under the Biden administration. We see secular growth underpinning the performance of a variety of renewable sub-sectors in 2021.
  • Corporate governance across the energy sector has steadily improved in recent years. We believe and enhanced focus in generating total shareholder return will direct much of the energy sectors rebound to the hands of energy investors in the coming year.
BP_Capital_Energy_Sector_Update_2021_02

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Contacts: Toby Loftin tloftin@bpcfunds.com 214.405.8278 (m) 

Disclaimer:

The information provided does not constitute investment advice and is not an offering of or a solicitation to buy or sell any security, product, service or fund, including any fund that may be advertised.

All information provided herein is for informational purposes only and should not be relied upon to make an investment decision.

Any charts, tables, and graphs contained in this document are not intended to be used to assist the reader in determining which securities to buy or sell or when to buy or sell securities.  Any projections or other information in this blog post regarding the likelihood of various future outcomes are hypothetical in nature and do not guarantee any particular future results.  Additional information is available upon request.  Unless otherwise noted, the source of information for any charts, graphs, and other materials contained here is BPCFA.

This document may contain forward-looking statements and projections that are based on our current beliefs and assumptions and on information currently available that we believe to be reasonable; however, such statements necessarily involve risks, uncertainties and assumptions, and prospective investors may not put undue reliance on any of these statements.

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