www.hennessyfunds.com
Open in
urlscan Pro
104.130.180.91
Public Scan
Submitted URL: https://go.hennessyfunds.com/e/291422/ail-utm-campaign-weekly-sector/29b9zm9/1039814066?h=a2-jRwKJ-3bRVW9Gq8KPAB12ABCDEFGHIJK...
Effective URL: https://www.hennessyfunds.com/insights/call-recap-nat-gas-energy-2.16.22?utm_source=pardot&utm_medium=email&utm_campaign=weekl...
Submission: On April 28 via api from CH — Scanned from DE
Effective URL: https://www.hennessyfunds.com/insights/call-recap-nat-gas-energy-2.16.22?utm_source=pardot&utm_medium=email&utm_campaign=weekl...
Submission: On April 28 via api from CH — Scanned from DE
Form analysis 0 forms found in the DOM
Text Content
Skip to Content
MobileMenu
CloseIcon
* Funds DropdownArrow
* View All Funds
* Prices & Performance
* Distributions
* Fund Documents
* Shareholder Forms
* Tax Center
* Investment Guides
* Domestic Equity
* Cornerstone Growth Fund
* Focus Fund
* Cornerstone Mid Cap 30 Fund
* Cornerstone Large Growth Fund
* Cornerstone Value Fund
* Multi-Asset
* Total Return Fund
* Equity and Income Fund
* Balanced Fund
* Sector & Specialty
* Energy Transition Fund
* Midstream Fund
* Gas Utility Fund
* Japan Fund
* Japan Small Cap Fund
* Large Cap Financial Fund
* Small Cap Financial Fund
* Technology Fund
* Insights DropdownArrow
* Resource Type
* Portfolio Perspectives
* Sector Highlights
* Videos
* White Papers
* Investment Ideas
* Market Outlooks
* Conference Call Recaps
* Company Spotlights
* View All Insights
* View Investment Guides
* Topic
* Overall Market
* Domestic Equity
* Energy
* Financials
* Japan
* Multi Asset
* Technology
Featured Insights
25 Years of a Focused Approach
The Portfolio Managers discuss how the Focus Fund has rewarded investors over
25 years. They also share their current outlook.
Natural Gas and the Energy Transition
We believe natural gas plays a role as an essential bridge to a more
sustainable and reliable energy future and will help meet increased demand.
* People DropdownArrow
* Meet the Team
* Portfolio Management
* Chief Market Strategist
* Client Services
* Business Management
Meet Our Portfolio Managers
Our Managers average over 20 years of investing experience.
Meet Neil J. Hennessy
As Chief Market Strategist, Neil delivers powerful market and economic
insights.
Meet Masakazu Takeda
Based in Asia, Masa is a recognized expert on investing in Japan.
* About DropdownArrow
* Firm Overview
* Investment Philosophy
* Invest With Us
* Shareholder Forms
OUR HISTORY
Since our founding, our priority has been meeting shareholders' needs.
HOW WE INVEST
High-conviction strategies, managed for long-term results.
REQUEST AN INVESTMENT KIT
We look forward to the opportunity to work together.
* News DropdownArrow
* News & Press Center
* Media Coverage
* Press Releases
TD Ameritrade - "Energy Sector Funds: GASFX and HNRGX"
TD Ameritrade - "Stock Picks: CarMax (KMX), Restoration Hardware (RH)"
TD Ameritrade - "Forecasting 2022 Performance For Financials"
* Hennessy Advisors
* My Account
* Contact
* Search Search
Search Search
YOU ARE NOW LEAVING THE HENNESSY FUNDS SITE.
Continue
THE STATE OF U.S. ENERGY
Ryan Kelley, CFA, Portfolio Manager of the Hennessy Gas Utility Fund and Ben
Cook, CFA, Portfolio Manager of the Hennessy Energy Fund and Hennessy Midstream
Fund recently shared their insights on the natural gas and energy sectors.
February 2022
* Ryan C. Kelley, CFA
Chief Investment Officer and Portfolio Manager
* Ben Cook, CFA
Portfolio Manager
Listen to the Replay
Download the Transcript
KEY TAKEAWAYS
• Renewable energy is expected to be the fastest growing fuel category over
the next 10 years, and we see natural gas growing as a companion to renewables
due to its abundancy and varied use applications.
• Historically, when inflation and interest rates have risen, the Energy
sector has outperformed the broader market.
• As commodity prices rise, many hydrocarbon energy-producing companies
should generate rising levels of cash, offsetting the negative inflationary
impact on consumer purchasing power.
• Natural gas utilities’ earnings growth is expected to strengthen due to the
growing importance of natural gas and its usage, an increasingly accommodative
regulatory environment, and a large undertaking in pipeline replacement and
modernization.
• The projected annual earnings growth for natural gas utilities should
double from its historical 3%-5% to 6%-8%.
• We see the reopening of the economy driving a rise in energy demand of all
kinds, which should be beneficial for midstream pipeline companies and LNG
exporters.
HENNESSY GAS UTILITY FUND HIGHLIGHTS
• Since the Hennessy Gas Utility Fund’s inception over 30 years ago, there
has been no significant correlation between the Fund’s performance and the
direction in interest rates.
• Within the Fund, 45 out of 48 companies pay a dividend. The average
dividend yield of those companies is 3.55% as of 2/20/22,1 with a 4.2% average
3-year growth rate.
ENERGY COMPANIES APPEAR ATTRACTIVELY VALUED
• U.S. Exploration and Production (E&P) companies trade at a 65% discount to
the S&P 1500 on an EV/EBITDA basis, which is larger than the 5- and 10-year
average discount of 45% and 35%, respectively.
• Sector MLP valuation is currently trading at 8.1x on an EV/EBITDA basis
using 2023 figures, which is 14% below the average valuation range of 9.5x on a
5-year average historical basis.
* In this article:
* Energy
* Gas Utility Fund
* Energy Transition Fund
* Midstream Fund
[1] Current and future holds are subject to risk. [2] The 30-day SEC Yield for
the Hennessy Gas Utility Fund (GASFX) was 2.29% as of 1/31/22. [3] - Arithmetic
average dividend yield is calculated as the sum of all dividend yields divided
by the count of that series of numbers.
EBITDA is the acronym for earnings before interest, taxes, depreciation,
amortization.
Show More PlusInTables PlusInTables
* Share
* Facebook
* Twitter
* LinkedIn
* Email-Article
* * Print ArrowRight
* GET INSIGHTS AND NEWS DELIVERED TO YOU.
Sign Up
YOU MIGHT ALSO LIKE
* Portfolio Perspective
INTEREST RATES, INFLATION, AND ENERGY
Ben Cook, CFA
Portfolio Manager
L. Joshua Wein, CAIA
Portfolio Manager
Portfolio Manager Ben Cook, CFA discusses his thoughts on how higher prices
have affected the economy, the capital discipline of many energy companies,
renewable energy, and valuations.
Read the Commentary ArrowRight
* Portfolio Perspective
A POTENTIAL PIPELINE OF HEALTHY CASH FLOWS
Ben Cook, CFA
Portfolio Manager
L. Joshua Wein, CAIA
Portfolio Manager
The Portfolio Managers share their insights on the macroenvironment driving
midstream companies, as well as midstream companies’ advantages in an
inflationary environment, valuations, and payout levels.
Read the Commentary ArrowRight
* Portfolio Perspective
NATURAL GAS REMAINS A FUEL OF CHOICE
Ryan C. Kelley, CFA
Chief Investment Officer and Portfolio Manager
L. Joshua Wein, CAIA
Portfolio Manager
The Portfolio Managers of the Hennessy Gas Utility Fund discuss America’s
role as a global supplier of natural gas, the Fund’s alternative energy
exposure, earnings growth expectations, and how Utilities perform in a rising
rate environment.
Read the Commentary ArrowRight
GET INSIGHTS AND NEWS DELIVERED TO YOU.
Sign up for updates ArrowRight
LEARN HOW HENNESSY APPROACHES INVESTING.
Our Philosophy ArrowRight
LET'S WORK TOGETHER TO GET YOU ON YOUR WAY.
Start Investing ArrowRight
* Meet Our Team ArrowRight
* View Fund Performance ArrowRight
* Check My Account ArrowRight
Footer_Final
* Fund Prices & Performance
* Distributions
* Fund Documents
* Shareholder Forms
* Tax Center
* All Insights
* Portfolio Perspectives
* Sector Highlights
* Videos
* White Papers
* Investment Ideas
* Market Outlooks
* Portfolio Updates
* Conference Call Recaps
* Company Spotlights
* Our Team
* Portfolio Management
* Chief Market Strategist
* Client Services
* Business Management
* About Hennessy
* Investment Philosophy
* Invest with Us
* News
* Media Coverage
* Press Releases
Contact Us
* Phone 800.966.4354
* Email 2 fundsinfo@hennessyfunds.com
Hennessy Funds
7250 Redwood Boulevard, Suite 200
Novato, CA 94945
Follow Us
* LinkedIn
* Twitter
The Funds' investment objectives, risks, charges, and expenses must be
considered carefully before investing. The prospectus contains this and other
important information about the investment company. Please read it carefully
before investing. A hard copy of the prospectus can be requested by calling
1-800-966-4354.
Performance data quoted represents past performance; past performance does not
guarantee future results. The investment return and principal value of an
investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance of the Fund may
be lower or higher than the performance quoted and can be found here. Neither
forward earnings nor earnings growth is a measure of a fund’s future
performance.
Mutual fund investing involves risk. Principal loss is possible. Small and
medium-sized companies may have more limited liquidity and greater price
volatility than larger companies. Investments in foreign securities may involve
political, economic, and currency risks, greater volatility, and differences in
accounting methods. The Focus, Total Return, Balanced, Large Cap Financial,
Small Cap Financial, and Midstream Funds are considered non-diversified funds. A
non-diversified fund, which may concentrate its assets in fewer individual
holdings than a diversified fund, is more exposed to individual stock volatility
than a diversified fund. A fund that concentrates its investments within one
country, one sector, or a small group of industries, such as Japan, Technology,
Financials, or Energy, may be subject to a higher degree of market risk.
Investments in debt securities typically decrease in value when interest rates
rise. The risk is greater for longer-term debt securities. Investments in
lower-rated and non-rated securities present a greater risk of loss to principal
and interest than higher-rated securities. Mortgage- and asset-backed securities
are subject to prepayment risk, which is the risk that the borrower will prepay
some or all of the principal owed to the issuer. Funds that invest in pooled
investment vehicles (including ETFs) may experience higher fees. The
formula-based strategy employed by some Funds may cause those Funds to buy or
sell securities at times when it may not be advantageous.
Master Limited Partnerships (MLPs) and MLP investments have unique
characteristics. A Fund does not receive the same tax benefits as a direct
investment in an MLP.
The prices of MLP units may fluctuate abruptly and trading volume may be low,
making it difficult for a Fund to sell its units at a favorable price. MLP
general partners have the power to take actions that adversely affect the
interests of unit holders. Most MLPs do not pay U.S. federal income tax at the
partnership level, but an adverse change in tax laws could result in MLPs being
treated as corporations for federal income tax purposes, which could reduce or
eliminate distributions paid by MLPs to the Fund. If the Energy Transition
Fund’s MLP investments exceed 25% of its assets, it may not qualify for
treatment as a regulated investment company (“RIC”) under the Internal Revenue
Code (“Code”), and the Fund would be taxed as an ordinary corporation, which
could substantially reduce its net assets and its distributions to shareholders.
The Midstream Fund is treated as a regular corporation, or “C” corporation, for
U.S. federal income tax purposes, and therefore, is subject to U.S. federal
income tax on its taxable income at the graduated rates applicable to
corporations (currently a maximum rate of 21%) as well as state and local income
taxes. The Midstream Fund will not benefit from current favorable federal income
tax rates on long-term capital gains, and Fund income and losses will not be
passed on to shareholders. The Midstream Fund accrues deferred income taxes for
future tax liabilities associated with the portion of MLP distributions
considered to be a tax-deferred return of capital and for any net operating
gains as well as capital appreciation of its investments. This deferred tax
liability is reflected in the daily NAV, and as a result, the Fund’s after-tax
performance could differ significantly from the underlying assets even if the
pre-tax performance is closely tracked.
Glossary of Terms contains definitions and additional information.
To view the top 10 holdings of a Fund, please click the Fund name: Cornerstone
Growth, Focus, Cornerstone Mid Cap 30, Cornerstone Large Growth, Cornerstone
Value, Total Return, Equity and Income, Balanced, Energy Transition, Midstream,
Gas Utility, Japan, Japan Small Cap, Large Cap Financial, Small Cap Financial,
Technology. Fund holdings are subject to change and not recommendations to buy
or sell any security.
Opinions expressed are subject to change at any time, are not guaranteed, and
should not be considered investment advice.
News and Media Page:
To view the Morningstar ratings for the Japan Fund, please click here. (Media -
TD Ameritrade)
To view the Morningstar ratings for the Focus Fund, please click here. (Media -
CNBC-B. Macualey).
1 USD = 105.36 Yen as of 07/27/2020 (Media - Ticker - M. Takeda)
Tom White is a TD Ameritrade Network contributor and is not affiliated with the
Hennessy Funds. Content is not investment advice, or a recommendation of any
security, strategy, or account type. Options involve risks and are not suitable
for all investors as the special risks inherent to options trading may expose
investors to potentially rapid and substantial losses.(Media - TD
Ameritrade-Rothberg)
To view the Morningstar ratings, please click here.
The Hennessy Funds are offered only to United States residents, and information
on this web site is intended only for such persons. Nothing on this web site
should be considered a solicitation to buy or an offer to sell shares of any
Hennessy Fund in any jurisdiction where the offer or solicitation would be
unlawful under the securities laws of such jurisdiction.
Quasar Distributors, LLC, Distributor.
Show More PlusInTables PlusInTables
* Privacy Policy
* Social Media Terms
* Proxy Voting
SUBSCRIBE FOR UPDATES
*Required Fields
CloseIcon
* Funds DropdownArrow
* View All Funds
* Prices & Performance
* Distributions
* Fund Documents
* Shareholder Forms
* Tax Center
* Investment Guides
* Domestic Equity
* Cornerstone Growth Fund
* Focus Fund
* Cornerstone Mid Cap 30 Fund
* Cornerstone Large Growth Fund
* Cornerstone Value Fund
* Multi-Asset
* Total Return Fund
* Equity and Income Fund
* Balanced Fund
* Sector & Specialty
* Energy Transition Fund
* Midstream Fund
* Gas Utility Fund
* Japan Fund
* Japan Small Cap Fund
* Large Cap Financial Fund
* Small Cap Financial Fund
* Technology Fund
* Insights DropdownArrow
* Resource Type
* Portfolio Perspectives
* Sector Highlights
* Videos
* White Papers
* Investment Ideas
* Market Outlooks
* Conference Call Recaps
* Company Spotlights
* View All Insights
* View Investment Guides
* Topic
* Overall Market
* Domestic Equity
* Energy
* Financials
* Japan
* Multi Asset
* Technology
Featured Insights
25 Years of a Focused Approach
The Portfolio Managers discuss how the Focus Fund has rewarded investors over
25 years. They also share their current outlook.
Natural Gas and the Energy Transition
We believe natural gas plays a role as an essential bridge to a more
sustainable and reliable energy future and will help meet increased demand.
* People DropdownArrow
* Meet the Team
* Portfolio Management
* Chief Market Strategist
* Client Services
* Business Management
Meet Our Portfolio Managers
Our Managers average over 20 years of investing experience.
Meet Neil J. Hennessy
As Chief Market Strategist, Neil delivers powerful market and economic
insights.
Meet Masakazu Takeda
Based in Asia, Masa is a recognized expert on investing in Japan.
* About DropdownArrow
* Firm Overview
* Investment Philosophy
* Invest With Us
* Shareholder Forms
OUR HISTORY
Since our founding, our priority has been meeting shareholders' needs.
HOW WE INVEST
High-conviction strategies, managed for long-term results.
REQUEST AN INVESTMENT KIT
We look forward to the opportunity to work together.
* News DropdownArrow
* News & Press Center
* Media Coverage
* Press Releases
TD Ameritrade - "Energy Sector Funds: GASFX and HNRGX"
TD Ameritrade - "Stock Picks: CarMax (KMX), Restoration Hardware (RH)"
TD Ameritrade - "Forecasting 2022 Performance For Financials"
* Hennessy Advisors
* My Account
* Contact
* Search Search
Search Search
YOU ARE NOW LEAVING THE HENNESSY FUNDS SITE.
Continue