Entries by Simon Lack

Nothing Ventured, Nothing Gained

SL Advisors Talks Markets
SL Advisors Talks Markets
Nothing Ventured, Nothing Gained



Loading





/

One source of recent volatility in midstream has come from a stock that wasn’t even listed – Venture Global (VG), the LNG exporter whose IPO priced on Thursday. The fundamentals could not be more positive. Trump has reversed the LNG export pause, wants US energy dominance and asked our trading partners to buy more American […]

The Energy Story’s Trifecta

SL Advisors Talks Markets
SL Advisors Talks Markets
The Energy Story’s Trifecta



Loading





/

I was chatting with an investor the other day, and he remarked that there are three powerful legs to the midstream story. They are demand growth for natural gas; attractive valuation; the incoming administration’s support for traditional energy. He felt that there’s too little appreciation of the underlying support from these three elements. Last year […]

More Gas Demand Is Coming

SL Advisors Talks Markets
SL Advisors Talks Markets
More Gas Demand Is Coming



Loading





/

Last week the Energy Information Administration (EIA) released their Short Term Energy Outlook (STEO). People are often surprised to learn that US power demand has remained the same for the past couple of decades – at around 4,000 Terrawatt Hours (TwHs). The economy and population keep growing but offsetting this is improving energy efficiency. Electricity […]

New Energy Policies Are Here

SL Advisors Talks Markets
SL Advisors Talks Markets
New Energy Policies Are Here



Loading





/

It’s now less than a week until Donald Trump takes over in the White House. The past couple of months have caused many to wonder why there’s such a long gap between the election and the inauguration. It’s a holdover from the eighteenth century when the time was required to allow messengers to travel to […]

Pipeline Earnings Or Cashflow?

SL Advisors Talks Markets
SL Advisors Talks Markets
Pipeline Earnings Or Cashflow?



Loading





/

Wells Fargo has recently suggested that the market may start paying more attention to the P/E ratios of midstream stocks. The sector has historically been valued using Free Cash Flow or Distributable Cash Flow (DCF), which is FCF less the maintenance capex necessary to preserve the value of existing assets. P/E hasn’t been used much […]

Energy Policies Are Moving Right

SL Advisors Talks Markets
SL Advisors Talks Markets
Energy Policies Are Moving Right



Loading





/

Data center demand for natural gas was the big energy story last year.  Wells Fargo referred to “a momentous year for midstream” with this as the biggest driver. It’s been consistently cited by JPMorgan and Morgan Stanley. Wells Fargo calculated that C-corps outperformed MLPs by 23%. This was a substantial difference and means that the […]

Last Year’s Favorite Blog Posts

SL Advisors Talks Markets
SL Advisors Talks Markets
Last Year’s Favorite Blog Posts



Loading





/

We enjoy the feedback from our blog readers, which along with the pageviews inform future topics. Looking back over last year’s posts, natural gas growth, the challenges facing renewables and obstructionist climate extremists were among the themes that resonated most. The most popular post was The Inflationary Energy Transition, which reviewed how US electricity prices […]

Economists Having Fun With Inflation

SL Advisors Talks Markets
SL Advisors Talks Markets
Economists Having Fun With Inflation



Loading





/

The other day I read a tweet complaining that since 1971 household family income had increased 5.5X (from $10K to $55K) while the median cost of a new car has gone up by 12X ($4K to $48K). It’s not quite correct. Median family income has risen to $101K, so has almost kept up. But it […]

The 8X Energy Transition

SL Advisors Talks Markets
SL Advisors Talks Markets
The 8X Energy Transition



Loading





/

Over the years I’ve developed a few soundbites to help investors remember why they should invest in midstream energy infrastructure. Once it became clear that climate extremists’ efforts to impede new pipeline construction were boosting free cash flow, I proclaimed that we should all hug our local climate protester and drive them to their next […]

English Christmas Traditions

SL Advisors Talks Markets
SL Advisors Talks Markets
English Christmas Traditions



Loading





/

Around this time of year, I’ve often indulged myself in writing about Christmas pudding (for more, watch this video). This English dessert is a rich, dark fruit cake best enjoyed heated with heavy cream. It is an acquired taste, and our children were each offered one brief opportunity to develop a taste for it. While […]

image_pdfimage_print