Gas “Consumer Problem,” Diesel “Economic Problem:” Adam Lampe on Energy Headwinds

stocks. Bitcoin is rallying as well 85,000 c Let's bring Mollie back into the conversation and turn our attention to trgy market with Adam Lamp CEO of Wealth Manage Adam, thank you so much for your time this afternoon. So let's just take a look at the enerket, particularly the performance over the last quarter. I mean, energy stocks are up about 40% this year. They very much erform. In fact, the single best performer of the third quarter here. I'm just wondering in light of all ofhat, what you are telling clients right now. I end of the day, we like energy. You know, in your headline, you know, we talked about diesel and diesels, where it's all at right now. You know, it's kind of interesting rightne dropped below 100 million. And thatirst time that's happened since 2003. And tout that perspective, some of these refineries that are, you know, in 2003, their net profit went up about 375%. And a lot of these companies are up 150%. And so we can all worry about, you know, what's going in in this world. And one of my favorite mentors told me a time ago, about 25 years ago, we can worry, but in the meantime, we're go make some money. And, you know, things are changing quickly.But, corporate profit growths are 29%. A but we do have to watch diesel. That's going to control a l things. So Adam, let's talk about diesel because there's a disconnect he when itomes to diesel. I mean, the U.S. producing about 14 million barrels oil day. But Texas has declared a statewide disaster over diesel prices. How do you explain the disconnect thate have here with the record crude production and also a se the fuel that the economy actually needs? I mean, I think going to deliver. And, you know, our governor, you know, he's made some com And I think it's a political season and I won't go down that path. But gasoline is a consumer problem. Diesel is a economy problem. And, you know, at the end of the whenever the prices do go up, it provides, you know, diesel provides moves for whether it's our trains, our tractors, our construction, you kn ultimately, everybody is a lot of times focused on oil,bn the actual diesel. I m we'r in a tough time. I will say that harvest is underway. The heating season is underway, but inventories have hit a 20ara money making opportuIf we back to history in 2003, you know, refinery companies their net profits went up 375% quarter over quarter in a year. So, you know, we'll b able to sell more at home. And that's great andthing. B my biggest worry is the policy risk that we have. You know, if we put any bans on, you know, policy, you know, the energy secretary himself said warned ban could raise prices on both coasts. And, you know, theast Coast and the West Coast depends on imports. And so I really worried about the policy more t anything. Other countries could retaliate and global prices co climb higher. So I'm hoping, you know, the leaders out there are listening to the smart folks out there, the nerdy folks out there that, you know, for investors, the biggest policy, the biggest risk is, you k policy risk. And they, they shouldn't do any bans right That would be the biggest, the biggest problem that I would see. How are you thinking about that sort of on a global scale then, e obviously we woke up to headlines around reports suggesting that the US was basically pressuring France and Germany to release their diesel stocks. We also saw a bit of a pick up in oil prices off the back ofna, reportedly stopping some refiners from exporting those fuel products as well. I mean, how is that factoring in t what we're seeing here in the U.S. Well, I mean, the fed has already raised rates since September. And, you know, it's the first time since 2023 that they've done that. And you know what, what you know, they mightntinuef diesel keeps on climbing. But again, I think the backdrop that we have to rely on is, you know, corporate profit growth is 29%. And j put that in perspective, last year we're talking it was only 12%. So with AI and a lot of things coming into play, thatt's thing , there's companies out there that are on both sides, you kn they're, they're, you know, they're, they're, they're, they're doing their cash flow, their dividends, and they're properly hedged, like Chevron and Exxon and some of those companies like the refiners out there, EOG, I love it's trading only attimes earnings. I mean that's that's that's on sale. I get excited things are on sale. All right so let's talk about diesel. We've got diesel right now about 638. What does $6 dl. Let's take an export ban off the table. Just look at our setup we have right now. We've got this $6 plus diesel. What does this mean Adam foror farmers, for trucking companies. I mean you said this p America and ultimately the price that consumers are going to pay for food and other goods if we stay at these elevated levels. Well, I mean, I think right now we do ha focus on the bottleneck. And that is the refinery. You know, the dieselrack spread right now is, is is hit a record and it's 106 in September. That's what roughly two and a half, you know, two and a half dollars a gallon in gross margin. So there's, you know, the farmers, you kno hopefully they're properly hedged. And, you know, that's why do you know, you have business interests and, you know, the at the end of the day, you know, this is a money making opportunity. The farmers are in a tough spot,ut we're already seeing like the Straits of Hormuz, they're, you know, that there's a blockade there, but a lot of people aren't talking about how they're finding alternative ways. But yeah, diesel is controlseverythe time, we have to embrace the opportunities. And, you know, hopefully those farmers also buy companies EOG. You know, some of the I know some gomers out there and they're successful and they're, they're hard working. And sometimes things go through cycles, but you have to look at history. 2003ed opportunity, you know, and, you know, we can also invest in conservative companies like, like Chevron that does the refining. They're on both sides of the deal. But, you know, I think we have to be pat Everything goes through cycles. This reminds me a lot of 2003. Yeah. I mean, if we are in an energy bull market now mean, driven by a number of factors and you're telling your clients that they should own energy companies and not oil futures. With what we're seeing in the price of oil, what we're seeing in the price diese LNG for that matter, as well, given some of the disruptions we've seen there across the energy spectrum, not toon the crack spreads, as you say, then what are you telling clients about b diversified across this sector? Well, I mean, for investors, you know, we own businesses, not futures. Futures are to protect a business interest. And, you know, we also have to be careful chasing what has already doubled. You know, I like companies like Chevron. You know, those are companies that, you know, they, they pump it and they refine it. And those are companies that have proven to, toake it in tough environments. But if you want, you know, pure refining, I like Phillips 66. It's a more divers company. It's midstream, it's got chemicals too. Just know that some of these refineries, y kno they made a big move. So they've gotten a little, you know, expensive. But if history tells us anything, in 2003, their net profits went up 375%. So know, like EOG and all these companies I've mentioned, we have tombrace volatility. That's probably my best advice to people is embracet. It's f our life. But you know, own companies t are, you know, that have like companies like Chevron that have, you know, Guana. And that's a major oil asset in this world. So we have to, you know, there's going to be turmoil. There's the Russian ban that we have to deal with rig. It's not going to expire until October 31st. But again, whatare meantime? Are we going to worry? Are we going to maey? And let's focus on making money, leave, try to leave the politics out of it and understand that these companies are properly hedged. And, you know, it's the end of the day. What matters most is your portfolioding up. And as much as I like any one stock, I always tell I only like it up to 1 to 3%. Adam, really apte you taking the time to be with us today. We're going to hav