THE AI REVOLUTION NEEDS ENERGY
US natural gas demand is growing to supply data centers and LNG exports. We believe midstream energy infrastructure offers predictable cash flows to investors.
Oil Markets Price In Higher For Longer
Since the Iran War began at the end of February, oil analysts and industry professionals have been warning that the price of crude was increasingly likely to move sharply higher. Storage is depleted. Tanker traffic through the Strait of Hormuz fluctuates with the success of Iranian attacks. Spot crude was recently back at the highs […]
The World Keeps Buying More American Energy
An investor asked me the other day what’s the most interesting theme across our portfolios. It has to be the export story. This blog often chronicles the outlook for US exports of hydrocarbons. Prospects improved with the war on Iran, and the protracted closure of the Strait of Hormuz is adding to the appeal of […]
It’s Not Inflation, For Now
Inflation fears are the widely held explanation for the continued rise in bond yields. This strikes us as an inadequate response that doesn’t correspond with the facts. Inflation expectations are not budging – either as reflected in the TIPS market or in survey data. Real yields are at their highest since the Great Financial Crisis, […]
Higher Yields Reflect Positivity
Midstream had a tough month in September, with the American Energy Infrastructure Index (AEITR) -8.3%, its second worst month in the past five years. Rising treasury yields pressured sectors traditionally owned for their income. The S&P Utilities ETF (XLU) was –5.9% for the month and is now –5.7% YTD through the third quarter. The Vanguard […]
Venture Global Moves More Than Needed
Market making in Venture Global (VG) must be a profitable business. More than most stocks, its price often follows a manic-depressive ride turning on the plausibility of presidential comments about negotiation with Iran. Following each dip as traders quickly conclude Trump’s tweets on Truth Social are based more on hope than substance, the stock rebounds. […]