In recent years climate extremists have become adept at weaponizing the legal system in pursuit of their dystopian aims. The Mountain Valley Pipeline (MVP), which was built to move natural gas from West Virginia to Virginia, faced extensive delays with only a few miles left, because climate activists were able to persuade a judge to vacate a previously issued permit. Billions had been spent, relying on the permanence of approvals issued by government agencies.

Nothing chills the appetite for construction projects more than the prospect of a legal fight of unknown duration. Eventually in 2023 Senator Joe Manchin from West Virginia, where the pipeline started, insisted that a bill to raise the debt ceiling include language stating completing MVP was in the national interest.

The pipeline was completed. But the extended project timeline helped limit the midstream energy infrastructure sector’s appetite for big projects, furthering the goals of the environmental extremists who had opposed it. However, several years ago we concluded that it also helped boost dividends and buybacks (see Pipeline Opponents Help Free Cash Flow).

Therefore, it’s appropriate that a $660 million jury award against Greenpeace USA in North Dakota seems likely to put them out of business. Energy Transfer (ET), who sued Greenpeace over damaging protests during the construction of the Dakota Access oil pipeline, doesn’t shy away from conflict. Their pugnacious chairman Kelcy Warren has a long history of falling out with regulators and even his own investors as we noted nine years ago during a dispute over preferred securities issued only to management (see Will Energy Transfer Act with Integrity?).

That dispute was also settled in court, in ET’s favor.

Greenpeace has pursued disruptive stunts such as illegally boarding oil rigs. They share the same ethos with Extinction Rebellion and probably inspired their acts to disrupt civil society, which include defacing works of art and walking on busy highways to prevent people from driving.

Greenpeace and their motley crew are experiencing the consequences of overreach. America will not miss their US affiliate.

The pendulum is swinging back.

Last year another group of climate extremists found a compliant judge to vacate a permit on which NextDecade (NEXT) was relying to build their Rio Grande LNG terminal on the Brownsville ship channel (see Sierra Club Shoots Itself In The Foot). The ensuing uncertainty about the project’s completion hurt the stock, raising NEXT’s cost of capital.

Last week the U.S. Court of Appeals for the D.C. Circuit revised its earlier ruling. NEXT duly rose, and we continue to think it’s an attractive investment.

In another positive development, the US Department of Energy approved Venture Global’s expansion of its Calcasieu Pass LNG terminal (CP2). Energy Secretary Chris Wright said, “The benefits of expanding U.S. LNG exports have never been more clear, and I am proud to be taking action to support the American people and our allies abroad with more affordable, reliable, secure American energy,”

Let’s just say we like his philosophy.

CP2 could export as much as 28 Million Tons per Annum (MTPA) of LNG, or about 3.7 Billion Cubic Feet per Day (BCF/D). For context,  feedstock to US LNG export terminals recently hit 16.6 BCF/D, a record.

VG’s stock duly rose on the permit approval. We think it remains attractively priced.

In Canada the CEOs of their biggest energy companies pushed for improved regulation with speedier approvals which will draw investment and increase production. Canada has long struggled to get its oil and gas to market and needs to diversify its trade links away from the US.

Last week saw a lot of positive news for President Trump’s favorite sector. But our high point was lunch with long-term investor Glenn Hamilton and his lovely wife Ruth, who visited us in Naples from Miami. Theirs is a wonderful American success story. From humble beginnings in Ohio, Glenn became what he describes as a serial entrepreneur, having founded and sold several companies.

Today Glenn runs Amerimet, a full-service metals processor, distributor and exporter of aluminum coil & flat sheet based in Miami. He recently transferred ownership to his employees via an ESOP, which he preferred over a sale to private equity even if it meant passing up on a higher valuation.

Glenn hasn’t only had good timing in business. He increased his investment in midstream energy during the pandemic when crude oil prices briefly turned negative. He figured they couldn’t go much lower. We enjoyed a most convivial lunch discussing energy and Republican politics at Campiello, a popular Naples restaurant. My wife and I look forward to seeing Glenn and Ruth again before too long.

We have two have funds that seek to profit from this environment:

Energy Mutual Fund

Energy ETF

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