YLDE - ClearBridge Energy MLP Strategy Q1 2024 Portfolio Manager Commentary
2024-04-27 11:00:00 ET
Summary
- ClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.
- A boost for cyclical sectors amid rising oil prices helped energy infrastructure stocks outperform equities in the first quarter.
- The trajectory of oil prices over the next year or so will likely be dictated by demand factors — not supply — and if global oil demand growth approaches roughly 1.0-1.5 million barrels per day in 2024, we see upside in oil prices.
- With no need for midstream companies to access capital markets for the foreseeable future, we increasingly expect excess cash flow (above and beyond capital spending and dividends/distributions) to be used for increasing share buybacks and further increasing dividends/distributions.
By Michael Clarfeld, CFA & Chris Eades
Cyclical Kick Helps Midstream Lead Equities
Market Overview and Outlook
A boost for cyclical sectors amid rising oil prices helped energy infrastructure stocks outperform equities in the first quarter. Winter storms dampening production across several U.S. oil fields, a weaker U.S. dollar and lower production levels by OPEC+ members conspired to help crude oil prices rise 16%, from $71.65 per barrel to $83.17, in the quarter. Prices were further supported by an improving economic outlook, as GDP growth remained strong and ISM Manufacturing PMI entered expansionary territory. The S&P 500 ( SP500 , SPX ) Index rose 10.56% for the quarter, while the Alerian MLP Index gained 13.91%....
ClearBridge Energy MLP Strategy Q1 2024 Portfolio Manager Commentary