Energy Transfer’s (ET) acquisition of Crestwood (CEQP) highlights the shortcomings of the proposed merger of Oneok (OKE) with Magellan Midstream (MMP). Because ET and CEQP are both MLPs, combining the two entities doesn’t constitute a taxable event for unitholders. This contrasts with OKE/MMP where MMP unitholders will face the recapture of deferred income tax on […]
Government regulations play a big role in energy markets. Although concern about climate change is part of the political discourse in every democracy, consumers and businesses aren’t going to reduce their emissions without tax credits, incentives and rules to modify behavior. Sometimes policies can have unintended consequences. Take ships, which mostly use heavy, bunker fuel […]
Last week the Alerian MLP ETF (AMLP) announced a reduced quarterly distribution. Regular readers know that AMLP has been a rich source of material for this blog. Launched in 2010 when MLPs were synonymous with pipelines, it was designed to offer exposure to midstream energy infrastructure without the K1s that so many investors and their […]
Midstream earnings are in, and generally met expectations as has been the case for the past several quarters. Williams Companies (WMB) enjoyed record natural gas gathering volumes of 18 Billion Cubic Feet per Day (BCF/D). This drove 2Q23 adjusted EBITDA of $1,611MM, versus analyst expectations of $1,568MM. Liquefied Natural Gas (LNG) exporter Cheniere continued a […]
Midstream earnings have been reported for the most part and generally came in at or close to expectations. Cheniere once again surprised to the upside, with 2Q EBITDA of $1.86BN versus market expectations of $1.62BN. They modestly increased full year guidance, carried out planned maintenance on their Sabine Pass facility on schedule and for the […]
It doesn’t look like a bull market, but July was crude’s best month in more than a year with the Brent benchmark closing up almost $11 per barrel at over $84. After peaking in spring of last year following Russia’s invasion of Ukraine, crude oil has been sliding irregularly lower. Russia has found ways to […]
Criticizing the Fed is a self-indulgence afforded the rest of us unburdened with the need to actually set monetary policy. The FOMC usually provides a target-rich environment. The last couple of years have offered a sumptuous feast of mis-steps. Start with synchronization of accommodative monetary policy with Biden’s uber-stimulus following his inauguration in early 2021. […]
The market currently assigns barely 50/50 odds of the Oneok-Magellan (OKE-MMP) merger receiving shareholder approval from both companies. When the deal was announced in May approval was judged to be highly likely, but it soon receded as analysts offered only lukewarm approval. We offered our view (see Oneok Does A Deal Nobody Needs) within a […]
Exxon Mobil (XOM) is not typically associated with Liquefied Natural Gas (LNG) but they are planning to double the volumes they handle by 2030, to 40 million tonnes pa. This would be equivalent to around 5.3 Billion Cubic Feet per Day (BCF/D). The US currently exports around 12 BCF/D although that will grow as new […]
Life after Climate Change: Better than you think by Bjorn Lomberg was recently published in the National Review. Lomberg has published several books arguing that climate change isn’t the existential disaster often portrayed in the media. His most recent is False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to […]
