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.
The Coming Fight Over Powering AI
US natural gas and its related infrastructure isn’t the only beneficiary of the AI-driven boom in power demand. Utility stocks have been rising, as investors assess growing power demand will boost earnings. The S&P Utilities Index is several per cent ahead of the S&P500 this year. Operators of data centers well understand the challenges they […]
Sierra Club Shoots Itself In The Foot
Once again a liberal activist judge has succumbed to a far-left climate extremist group. On Tuesday DC Circuit Chief Judge Srinivasan, along with Circuit Judges Childs and Garcia sent parts of a previously granted permit from the Federal Energy Regulatory Commission (FERC) back for review. NextDecade’s (NEXT) Rio Grande LNG export terminal was one of […]
Carry Traders Get Carried Out
It looks like a big margin call started in Japan. The Japanese Yen has become a funding currency in recent years, a source of cheap financing with the proceeds reinvested in better returning assets – such as US$ listed AI stocks. Debtors benefit when the currency in which they’ve borrowed depreciates. The Yen offered low […]
Is Natural Gas Turning?
US natural gas is the cheapest in the world. December TTF futures on the European benchmark are $13 per Million BTUs (MMBTUs). The Asian JKM benchmark is $12.50. The US Henry Hub December futures are at $3.15. Fracking has become ever more efficient, allowing production to continue even at prices that seem ruinous. Range Resources […]
Cash Returns Drive Performance
One casualty of the shale revolution was the MLP financing model. The General Partner (GP) would typically direct its MLP to finance assets that were “dropped down” from the GP. MLP capex and M&A more than tripled from 2010 to 2015. Cash returns too often came up short of those promised, and investors lost confidence […]