There were several positive news stories last week that helped propel the American Energy Infrastructure Index (AEITR) to +7% YTD, well ahead of the S&P500 which is +1%. Kinder Morgan’s (KMI) earnings unusually beat expectations. Moreover, their increased backlog of projects didn’t scare investors as much as it should given their perennially low Return On […]
In The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution, author Greg Zuckerman explains how today’s traders spend most of their time doing research. At Renaissance, the hedge fund Zuckerman chronicles, and other quantitative funds, traders spend much of their time looking for market anomalies that are likely to repeat and […]
More than most times, the energy market is moving on macro developments. President Trump is for low oil prices. He wants energy dominance which means ample supply. Although the White House is a big fan of the US energy sector, volumes trump profits. Trump’s first term was not a good one for energy investors. Oil […]
Energy was a laggard in 2025, and within that Liquefied Natural Gas (LNG) stocks were especially weak. The S&P Energy Index was +9.1%, 8.8% behind the S&P500. The American Energy Independence Index (AEITR) was +1.7%. The five-year annual trailing return on the AEITR is well ahead of the broader market (23.6% vs 15.3%). Over the […]
Regular readers know that around this time of the year my thoughts briefly stray from midstream energy to Christmas. My love of Christmas pudding has been well documented here (see English Christmas Traditions, Merry Christmas and Happy Holidays! and watch The Joy of Christmas Pudding). We all fondly remember the Christmas of our childhood. My […]
2025 has been frustrating for those who must explain short term performance in midstream energy stocks – which is to say your blogger, along with many financial advisors whose clients are invested in the sector. It hasn’t been an especially newsworthy year. In 2024, the realization that natural gas would benefit from the growth of […]
Hydrogen has long been thought to be a viable form of carbon-free energy. When burned, it produces water vapor. But hydrogen isn’t very energy-dense (about two thirds less than gasoline), is expensive to produce and hard to handle. An interesting fact is that H2 molecules are so tiny they can gradually leak through a steel […]
Renewables’ advocates are fond of linking solar and wind with the power needs of data centers. Superficially, the marriage of new technology and new energy seems inevitable. Bloomberg New Energy Finance (BNEF) is just one example of media outlets that are telling this story (see Power Hungry Data Centers Are Driving Green Energy Demand). Inconveniently, […]
Midstream is mercifully removed from all the angst and excitement of AI stocks and crypto – although in a modern version of selling pickaxes to goldminers, natural gas and its infrastructure enable much of this activity. You have to admire the response of MicroStrategy CEO Michael Saylor to the bitcoin collapse which has crushed his […]
To be a climate scientist means to live with a dour outlook. The news is never good. We’re always at a tipping point beyond which irreversible damage to the planet will result. Humanity may die out. Therefore, it was cheering to find some good news in the International Energy Agency’s (IEA) World Outlook 2025, albeit […]
