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.
Building Away From Iran
Since the Iran War began at the end of February, the price of European LNG and a composite of three US LNG exporters (Cheniere, Venture Global and NextDecade) have tracked each other fairly reliably. At the outbreak of hostilities, LNG investors were slow to realize the opportunity, but after a month of conflict both were […]
Fairly Valued and Still Valuable
We’ve been providing sector updates to a number of clients recently. Midstream had a good 1Q but stalled during 2Q. The resumption of hostilities last week pushed stocks higher, but even without that we think valuations remain attractive. Enterprise Value/EBITDA at 11.1X is close to the ten-year average, a period which includes the 2020 pandemic […]
America’s Semiquincentennial
Around this time of year people ask me if we Brits celebrate July 4th. I have devised a variety of ripostes to this friendly goading. School history classes never even reached 1776 – interminable hours were dedicated to prior centuries. Perhaps English historians concluded nothing much important happened 250 years ago… Of course, we do […]
Awash In Oil
Apparently, the senior executives of Exxon and Chevron weren’t the only ones worried about inadequate oil inventories causing prices to spike (see Is Crude At A Tipping Point?). The White House heard the message, and ships are once again moving freely through the Strait of Hormuz. The world is suddenly awash with oil, which by […]
Still Bullish After The Truce
Last week we were in Tampa and Orlando meeting with investors. It’s always a pleasure to see clients that have been with us for several years, because they’ve invariably had a positive experience. On the drive from Tampa to Orlando on I-4 we passed the exit for DisneyWorld, although sadly didn’t have time on this […]