EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors.
Pipeline Companies Trim New Projects
Coming into 2020 the pipeline sector was in good shape. Spending on growth projects peaked in 2018, and lower growth capex combined with rising cashflow from existing assets were set to drive Free Cash Flow (FCF) higher. Across the companies that are in the American Energy Independence Index it was on course to more than […]
Natural Gas Demand Still Stable
Crude oil drew the headlines this week. Trump’s Wednesday tweet forecasting a 10 Million Barrel per Day (MMB/D) agreed supply reduction (“Could be as high as 15 Million Barrels”) caught markets off guard. The demand collapse is astonishing. The world was consuming around 100 MMB/D of crude oil and liquids before the coronavirus. Estimates are […]
Navigating the Collapsing Oil Market
To the list of previously inconceivable events, add Texas oil drillers asking for their regulator to impose production curbs. Pioneer Natural Resources (PXD) and Parsley Energy (PE) filed a request with the Texas Railroad Commission (RRC) to hold a hearing on the state’s oil and gas production. It’s over 40 years since they last considered […]
The Disappearing MLP Buyer
Approximately 80% of our investments in midstream energy infrastructure are corporations – we invest in MLPs selectively. There’s a big difference between investing in pipeline corporations with their wide investor base, and MLPs whose pool of natural buyers is withering. That’s why eight of the ten biggest names in the American Energy Independence Index (AEITR) […]
Update From Williams Companies
Yesterday Williams Companies (WMB) provided an investor update on their business. WMB isn’t directly involved in crude oil, and they’re best known for owning Transco, a natural gas pipeline network running down the eastern U.S. So far, natural gas demand is un-impacted, and slightly above historical norms. WMB provided some information on their overall sensitivity […]