Author Archive for: Simon Lack
Entries by Simon Lack
British Shale Revolution Crushed: America’s Unique Ownership of Oil and Gas
A Cuadrilla is the matador’s supporting cast. Before the bullfighter takes on his next victim, the bull is tormented and weakened by a gang (a “Cuadrilla”) of toreadors and picadors. Of course, the bull always loses, because it’s a spectacle not a sport. Cuadrilla is therefore an oddly antagonistic name for a UK company using […]
Bond Investors Agree With the Fed…For Now
The Federal Reserve has brought transparency to their decisions. The famous “blue dots” which show visually each FOMC voting member’s forecast for rates provides insight into their thinking, even if it doesn’t attach names to each dot. We’ve come a long way from Alan Greenspan’s Senate testimony, “Since becoming a central banker, I have learned […]
Another MLP Jumps Ship
Last week Antero Midstream (AM) became the latest MLP to simplify their structure. This is further evidence of the declining opportunity set for MLP-dedicated funds, and cause for investors to seek exposure to energy infrastructure that goes beyond MLPs to include corporations (see The Uncertain Future of MLP-Dedicated Funds). Like many MLPs before them, Antero […]
Rising Rates Reflect Strong Pipeline Fundamentals
Will rising interest rates hurt pipeline company stocks? Ten year treasury yields are at 3.25%, a seven year high. The bond market is commanding the attention of equity investors once more. The high yields on MLPs have long attracted income-seeking investors. A common valuation metric is to compare the sector’s yield with the ten year […]
Can Anyone Catch America in Plastics?
Ethane prices recently hit a four year high. Although this garnered far less attention than the crude oil rally, increasing supplies of ethane is an unappreciated element of the Shale Revolution. “Dry” natural gas consists of methane, most commonly supplied to residential gas stoves but also increasingly used by power plants to produce electricity. “Wet” […]
Saudi America: Why the Shale Revolution is Real
Bethany McLean didn’t intend her latest book, Saudi America: The Truth About Fracking and How It’s Changing the World, to be a booster of the Shale Revolution. The New York Times got it all wrong when they titled her promotional op-ed, The Next Financial Crisis Lurks Underground. Before reading her book, I therefore assumed that […]
Pipeline Stocks Chart a Higher Path
Technical analysis shows that the outlook for pipeline stocks is bullish. We rarely write on technicals, since we’re relentlessly focused on the fundamentals. But fundamental news has been light, with prices drifting irregularly lower. Investors are overwhelmingly frustrated with the failure of pipeline company stocks to reflect growing throughput volumes. The U.S. just claimed World’s […]
U.S. Oil and Gas Exports: A New Weapon
Start with Iran. In May, Trump withdrew from the Nuclear Accord over strong opposition from foreign allies and domestic policy experts. America announced it would unilaterally impose sanctions on Iran from November 1. Critics said this would be ineffective. Since then, Iranian oil exports are down 25% and likely to fall further. Any company trading […]
