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..
Buffett Finds Value in Shale
Warren Buffett likes the Permian Basin. This was clear from Berkshire’s (BRK) proposed $10BN preferred investment in Occidental (OXY) should they buy Anadarko (APC). Berkshire’s annual shareholder meeting was followed as usual with a Becky Quick interview on CNBC. The 8% dividend on the preferred OXY will issue to finance their acquisition could be inducement […]
Pipeline Earnings Good; Investors Skeptical
We’re in the middle of earnings season, and last week several companies provided 1Q reports. The energy sector continues to struggle to excite investors. Although pipelines stocks delivered very strong performance through March, in recent weeks investors have started to question the rally’s resilience. As a result, sentiment could use a boost from strong earnings. […]
A Reactive Federal Reserve
The other morning a CNBC guest was able to share an insight not normally found on TV. The need for ten-second ideas greatly limits the ability of otherwise intelligent people to share much wisdom. R.J. Gallo, whose Christian names are apparently only initials, trades municipal bonds for Federated Investors. He suggested that rates can rise […]
The Coming Pipeline Cash Gusher
Pipeline company earnings are being scrutinized for capital investment plans. The energy sector’s pursuit of growth has been well covered. Investors would prefer less excitement and more return on capital through dividends and buybacks. Company management teams are for the most part grudgingly co-operating. Targa (TRGP) CEO Joe Bob Perkins defiantly described growth projects as […]
Investors Look Warily at the Persian Gulf
The Shale Revolution has certainly provided America with more geopolitical freedom. The 1973 Arab oil embargo punished the U.S. for supporting Israel, as it fought Egypt and Syria. Shortages of gasoline visibly demonstrated the limits to U.S. actions. As a result, every president since Nixon has called for energy independence. Swaggering energy dominance is the […]