EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES AND INFLATION HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors..
Natural Gas Profits Remain Elusive
Coal is by any measure an environmental and climate disaster. The world relies on coal in various forms for 27% of its primary energy, and it’s responsible for 40% of its CO2 emissions from fuels. Although it possesses lower energy density than oil or natural gas, coal is relatively easy to transport and store which […]
Elections Usually Boost Earnings
It’s a year until the next presidential election. The S&P500 is making new highs, reflecting the persistence of fund flows into equities. Quarterly earnings have been coming in ahead of expectations, but still down 1% year-on-year. Down less than expected counts as up for traders. It’s also worth noting that expectations are for a 10% […]
Tallgrass Responds to Critics, Missing the Point
Earnings season for pipeline companies has provided few surprises, offering little to offset fund outflows, which continue to weigh on performance. Therefore, the Tallgrass (TGE) call last Wednesday promised to be more interesting than most. Blackstone’s (BX) offer to take private the 56% of TGE it doesn’t already own has focused attention on a sideletter […]
California’s Altruistic Carbon Policy
Wildfire season began abruptly in California last week. Bankrupt utility PG&E’s planned widespread power outages are a response to last year’s fires, which were blamed on high winds and faulty transmission lines. Having friends in affected areas, as many of us do, certainly brings home the tragedy and fear that comes when you might lose […]
Drilling Down on Shale Depletion Rates
The Shale Revolution has substantially increased America’s output of oil, natural gas and natural gas liquids. We often use the chart below to highlight this exponential growth. Those exponential curves are going to flatten, not only because nothing can rise that fast indefinitely, but also because of the high initial depletion rates of fracked wells. […]