Entries by Simon Lack

Pipeline Stocks Are Quietly Recovering

“Horrific. Terrible. Abysmal. The worst. Those are terms equity analysts are using to describe investors’ attitude toward energy stocks.” This is from a recent Wall Street Journal article (see Energy Stocks Fall Faster Than Oil Prices). Sentiment in the energy patch is poor. Too much spending with too little returned to shareholders is the main […]

Pipeline Earnings in a Market Focused Elsewhere

Earnings season for midstream energy infrastructure kicks off with Kinder Morgan (KMI) on Wednesday. In April we identified growing free cash flow (see The Coming Pipeline Cash Gusher) as the most important catalyst for higher security prices. We’ll be reviewing quarterly earnings for evidence that the sector remains on track to generate increasing amounts of […]

Criticizing MLPs Helps Them

Wednesday’s blog, Energy Transfer’s Weak Governance Costs Them drew a record number of pageviews within a few hours of being posted. It’s not just because Energy Transfer (ET) is a large, widely held MLP. Much of the writing in the sector is from cheerleaders who don’t criticize the companies they follow, because it’ll hurt their […]

Review Of Russell Gold’s Superpower

Five years ago Russell Gold published The Boom: How Fracking Ignited the American Energy Revolution and Changed the World, one of several books that chronicled the Shale Revolution. Gold provided first-hand descriptions of fracking after persuading Marathon Oil to let him visit a site in North Dakota. He offers a fascinating description of the process […]

The Complex Politics of Climate Change

Greta Thunberg’s speech at the United Nations may have grabbed the climate change headlines. But for those who find policy prescriptions from someone not yet out of high school a publicity stunt, the Energy Information Administration’s (EIA) 2019 International Energy Outlook was more interesting. The UN’s Intergovernmental Panel on Climate Change (IPCC) wants the world […]

Another Gripping Episode of Brexit

For constitutional observers, each weekly Brexit installment leaves viewers on the edge of their seats, pondering what further twists in the drama remain. Most recently, England’s Supreme Court ruled against Conservative Prime Minister Boris Johnson’s suspension of Parliament. Intended to stifle parliamentary debate during the run-up to Britain’s next Brexit deadline of October 31, the […]

Pipelines Correlations Are More Pleasant

Clients often want to discuss the correlation between returns on midstream energy infrastructure and crude oil prices. Prior to 2014, investors learned that pipelines were like toll roads, more concerned with the volumes passing through than its value. The 2014-16 crude oil collapse drove down the energy sector. Alerian’s index shed 58.2% over eighteen months, […]