Episode 17: Developing Countries Must Fight Harder on Climate Change
In this week’s podcast, Simon Lack comments on developing countries inaction on climate change
Sources mentioned in podcast:
Episode 16: Celebrity Climate Change Shaming
In this week’s podcast, Simon Lack complains about celebrities lecturing us on climate change
Sources mentioned in podcast:
Julia Roberts, James Cameron and Al Gore
If you missed our webinar last week, titled “Volumes, Cashflow and ESG”, here’s a link to a replay.
Episode 15: Climate Extremists and Falling US CO2
In this week’s podcast, Simon Lack talks about climate extremists and good news on US CO2 emissions
Sources mentioned in podcast:
Greta Thunberg in the Economist
New York Post on where CO2 emissions are growing
Extinction Rebellion video protesting on top of commuter train
Episode 14: The Misdirection of Extinction Rebellion
The Misdirection of Extinction Rebellion
In this week’s podcast, Simon Lack talks about Extinction Rebellion’s misguided objectives
Episode 13: Review of Russell Gold’s Superpower
Review of Russell Gold’s Superpower
In this week’s podcast, Simon Lack talks about his conclusions after reading Russell Gold’s recent book, Superpower
Episode 12: Greta’s Grandstanding
Greta’s Grandstanding
In this week’s podcast, Simon Lack talks about Greta Thunberg’s UN speech and long term projections for energy use
Episode 11: Iran Teaches Dems Geopolitics
Iran Promotes Fracking
In this week’s podcast, Simon Lack is going to talk about the lesson we should take from the attack on Saudi Arabia’s oil infrastructure
Episode 10: Political Promises on Climate Change
Political Promises on Climate Change
In this week’s podcast, Simon Lack talks about the impractical promises from Democrat presidential candidates on climate change, and adds an update on the Blackstone-Tallgrass deal (6 minute mark).
Episode 9: Blackstone and Tallgrass
In this week’s podcast, Simon Lack is going to talk about the ethical gulf revealed by Blackstone’s offer to take Tallgrass private.
Links:
Private Equity Sees Value in Unloved Pipelines
https://sl-advisors.com/private-equity-sees-value-in-unloved-pipelines
Blackstone and Tallgrass Further Discredit the MLP Model
https://sl-advisors.com/blackstone-and-tallgrass-discredit-mlp-model
Episode 8: Private Equity Buyers
In this week’s podcast, Simon Lack talks about the difference in value seen by private and public market investors.
Show Notes:
Energy remains out of favor (:46)
Recently dropped to 4.5% of S&P500 (:48)
FT wrote about Why US energy investors are experiencing a crisis of faith (1:01)
Being an energy investor requires religious conviction (1:12)
Attractive dividend yields (1:22)
Growing cashflows (1:23)
Malaise caused by reinvesting too much cash (1:36)
Poor expense control (1:46)
Fears of global warming (1:49)
Blackstone bought 56% of Tallgrass they didn’t already own (2:00)
GS estimates $250BN in private capital for infrastructure and natural resources (2:20)
Ultra low bond yields + tremendous demands for stable, long term flows (3:11)
Pension funds are part of the demand. US pensions 28% in fixed income, up 3% (3:19)
Blackstone paying 36% premium (4:06)
All good news, lifted the sector (4:20)
Except seems a bit of bait and switch (4:30)
Blackstone bought 44% earlier this year (4:40)
But buying 56% costs less than buying 44% earlier this year (4:52)
Questions asked about why they hadn’t bought whole company (4:55)
Meanwhile stock has slid over uncertainty about capex, recontracting on pipelines (5:04)
Blackstone took opportunity to bid for 56% they didn’t own at $19.50, 35% premium (5:15)
Management team gets to sell their shares at $26.25, 35% above deal price (5:33)
Good to see private equity buying another pipeline company (6:27)
Finding value in sector (6:32)
Disappointing to see another management team structuring transaction with superior rights for themselves compared with other investors (6:37)
Links:
Why US energy investors are experiencing a crisis of faith
https://www.ft.com/content/71655bca-c8c2-11e9-a1f4-3669401ba76f