Charles Mizrahi teased three oil and gas stocks in a recent (March 2023) ad, and he refers to one of them as his “no. 1 stock recommendation for getting through the energy crisis.”
The presentation is basically a sales pitch for his $47 Alpha Investor service, so the only way to find out for certain what his picks are would be to join that. But I looked into his clues to see what I could uncover, and I think I know what all three of his picks are.
So if you want to know what Mizrahi is teasing without joining Alpha Investor, read on. I will show you everything I learned about his oil and gas prediction and picks.
Charles Mizrahi’s “Energy Crisis” Prediction
Mizrahi’s oil and gas stock teaser is pretty long-winded…
But when you boil it all down, it’s actually quite simple, and his thesis is similar to numerous other presentations I’ve written about over the past 6-12 months.
In short, Mizrahi more or less argues that the transition to renewable energy in the U.S. is destined to fail and that it has caused what he calls a “massive energy crisis.”
Here’s a snippet from the presentation:
“Politicians in Washington … they turned their backs on fossil fuels … the very energy that powered America to greatness.”
“They cancelled coal, killed the Keystone pipeline and in bursts of brilliance … froze drilling permits for oil and gas..
“After choking off our domestic supply of fossil fuel … they went ahead and gambled $1 trillion, and our ENTIRE future, on ‘clean energy.'”
“A massive energy crisis isn’t just coming to America. It’s already here, knocking on our door.”Source: https://web.archive.org/web/20230322043016/https://pro.banyanhill.com/p/WMC-CMZENERGY23-003/LCMZZ349/Full
Why isn’t he bullish on renewables?
Basically, Mizrahi points out that the only way to make renewable energy work is with (lots of) batteries because solar and wind are too intermittent without them.
And according to Mizrahi, this is a “huge problem” for two reasons.
First, he claims there aren’t enough mines in the world to provide enough materials to actually make the batteries in the first place.
And second, even if there were enough raw materials available, he claims it would be “impossible” to actually produce enough batteries to power the U.S.
Here is the part of the teaser I’m talking about:
“And here’s the real kick in the pants…
“A 100% clean energy future is only a dream.
“And that’s because it’s literally impossible to make enough batteries.
“There aren’t enough mines in the world to provide enough materials. Research from Prager University shows that global mining would need to increase as much as 2,000% to meet battery demands.
“You can’t stick a pipe into the ground for oil without environmental regulations shutting the operation down…
“So, do you really think the U.S. is going to approve a 20-fold increase in mining operations to make all those batteries?”
“And even IF we could mine enough minerals for all those batteries, it would take FOREVER to make them…
“Case in point.
“Tesla built the world’s largest battery factory in Nevada…
“And as impressive as that is, it would still take that factory 500 years to make enough batteries to store just ONE day’s worth of America’s electricity use.
“Imagine how long it would take to make enough to power America for a week … or a month.
“That’s not speculation or opinion … it’s physics.”
Long story short, Mizrahi talked about how there will be a “massive spike in energy demand” in June (due to summer) and December of 2023 as winter takes hold in the U.S.
And he argued that the U.S. government, despite its plans for renewable energy, will have no choice but to embrace natural gas. Why? Because according to Mizrahi, it’s the “cleanest fossil fuel on the planet,” and North America is “swimming in it.”
“The next massive spike in energy demand is set to occur soon.
“That’s when winter will begin, and the next wave of winter storms will send energy consumption through the roof … overwhelm power supplies … and set the stage for large-scale rolling blackouts…
“And the quick, desperate need for energy will put one specific fossil fuel at the top of their list…
“It’s the cleanest fossil fuel on the planet…
“Data from the International Energy Agency shows that, since 2010, switching coal power plants over to natural gas has kept 500 million tons of CO2 from being released … the equivalent of putting 200 MILLION EVs on the road.
“And North America is swimming in it.
“At last count, the Energy Information Administration reported the U.S. alone has enough natural gas beneath its feet to last 100 years.
“Add in our neighbors to the north, Canada, and you’re looking at an absolute treasure trove of available natural gas … just what the West will need to get us through this unavoidable energy crisis.”
He then summed up his prediction by (more or less) saying that natural gas is the solution and that he’s found a company that’s “set to grow by leaps and bounds” should his prediction unfold.
“Real talk — natural gas is going to take center stage in America’s future.
“It’s the only realistic way to get ‘cleaner’, stronger, and we’re going to produce and A LOT MORE of it…
“And I have my eye on a company that’s set to grow by leaps and bounds as we do.”
The company Mizrahi is teasing here is detailed in a report he created called “Energy Fortunes,” which you can get by joining his Alpha Investor service.
But since he shared a whole bunch of clues about the company (and two other companies), I decided to see if I could solve this puzzle without reading the reports.
So with that said, let’s see what stocks he’s tracking.
Mizrahi’s 3 Oil & Gas Stock Picks Revealed
Company 1: “Energy Fortunes” (aka Mizrahi’s “No. 1 stock recommendation for getting through the energy crisis”)
Charles Mizrahi shared quite a few clues about his “Energy Fortunes” pick, but they were all vague enough to make solving this one quite the task!
Anyway, here’s a summary of the clues he shared in the teaser:
“It’s one of the top-five natural gas producers in all North America.
“The CEO got his start with Shell and has been in the industry for more than 40 years.
“Its free cash flow has been climbing through the roof…
“That means it has plenty of money to both grow its operations … AND to reward investors through share buybacks and dividends.
“They have by far, the largest future inventory of natural gas in North America. They also have over 75 years’ worth of current drilling inventory … more than enough to help get us through a long-lasting crisis.
“And it has the best greenhouse gas emissions score out of any of its peers … by a mile.
“To top it all off, this company signed a deal to supply gas to the largest natural gas producer in the United States … for the next 15 years.”
“During the last big crisis we faced, the pandemic, shares of this company shot up as high as 1,400% from 2020 to 2022.”
It looks like Mizrahi is teasing Tourmaline Oil Corp (TOU).
Why do I think that?
Well, after looking into each of Mizrahi’s clues (above), and coming up with several close matches, the clue that finally led me to Tourmaline was the one about how the company has “over 75 years’ worth of current drilling inventory.”
This clue led me to an article on Seeking Alpha, which says: “Tourmaline estimates that it has a substantial 75-year drilling inventory.”
From there, I looked into the other clues Mizrahi shared, and that’s when I came to the conclusion that Tourmaline is the closest match.
Here’s a quick overview of why I say that:
- According to Wikipedia, Tourmaline was the fifth largest natural gas producer in North America as of October 2021.
- The company’s CEO, Michael Rose, has around 40 years of industry experience and once worked as an engineer at Shell Canada Ltd.
- I don’t know what the company’s “greenhouse gas emissions score” is, but the company site suggests that they are very focused on sustainability.
- Tourmaline has signed a “15-year contract with Cheniere Energy,” according to oilprice.com. And according to the Cheniere’s website, it is the “leading producer and exporter” of liquified natural gas (LNG) in the U.S.
- The company’s stock chart matches very closely with what Charles Mizrahi showed in the presentation (once you convert Canadian dollars into U.S. dollars)…
I don’t know if it’s a “good” stock or not because, unlike Charles Mizrahi, I’m not a stock-picker. But Tourmaline appears to be the “no. 1 stock recommendation for getting through the energy crisis” that he teased in the presentation.
So if you agree, at least now you don’t have to fork out $47 to find out what it is. And if you want to know more about the company, you might find this Motley Fool article helpful.
Company 2: “Oil 2.0”
This pick was much easier to solve.
Here are Mizrahi’s clues:
“There’s also another opportunity I want to share with you…
“An oil investment.”
“It’s a company that has oil and gas operations in not just one or two, but FIVE of America’s richest shale formations.”
“It’s been named the ‘World’s Fastest-Growing Oil and Gas Brand.'”
“And, as icing on the cake, it pays shareholders a 9% dividend.”
Mizrahi also shared a couple of images in the presentation, one of a stock chart and another of the company’s oil project locations.
And after digging through all of that, I think his second pick is an Oklahoma-based oil and gas company named Devon Energy Corp (DVN).
What led me to this one was Mizrahi’s clue about how the company was named the world’s fastest-growing oil and gas brand.
And from there, I found that the clues about the company’s project locations line up, and the stock price and dividend clues are a close match as well (taking into account that the presentation was likely recorded somewhere in February/early March 2023).
Company 3: “Pipeline Profits”
Lastly, here are the hints Mizrahi shared about his “pipeline profits” pick:
“Energy is only as plentiful as your ability to get it to where it’s needed…
“And that’s what makes my third stock recommendation an absolute must-have for your portfolio…
- This company is one of the most well-positioned pipeline operators in the country.
- It has one of the largest and most diversified networks, with pipelines servicing ALL of America’s major oil- and gas-producing shale basins.
- They move crude oil, raw natural gas, refined oil, and refined natural gas from fields to transport hubs and refineries.
- And they even supply water to fracking sites … which the oil drillers need to pump into the ground to force oil out.
“Pipelines are the arteries and veins of America. Without them, no energy.
“At the end of the day, it’s next to impossible for anyone else to replicate this company’s footprint.
“And its network is growing larger by the moment…
“In fact, Washington had quietly given them approval to put another new pipeline in service. It will move natural gas from the Haynesville shale basin to terminals and refineries along the Gulf Coast.
“Plus, they recently signed a huge deal to lock in 20 years of liquified natural gas sales.
“This company also pays a big dividend of close to 9%.”
And as with the previous two picks, Mizrahi shared some charts of the company’s stock price, which indicate that it was trading at around $12 a share when he recorded the pitch.
So, long story short, I think the third company is most likely Energy Transfer LP (ET), a Dallas-based oil and gas pipeline company.
Recommended: Go here to see my #1 rated stock advisory of 2023
Without reading all three reports Mizrahi has put together, it’s impossible to know for certain what his stock picks are, but the above are my best guesses.
I joined Alpha Investor a few months back, so I could go read those reports to find out what he’s pitching. But because Alpha Investor is a paid service, I make a point of not doing that before writing these posts and instead use only info he’s shared publicly.
As for whether or not his service is worth it, I would recommend checking out my review of Alpha Investor, as I break down how his model portfolio has performed.
So with that said, I hope you enjoyed the post and thanks for reading!