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..
British Shale Revolution Crushed: America’s Unique Ownership of Oil and Gas
A Cuadrilla is the matador’s supporting cast. Before the bullfighter takes on his next victim, the bull is tormented and weakened by a gang (a “Cuadrilla”) of toreadors and picadors. Of course, the bull always loses, because it’s a spectacle not a sport. Cuadrilla is therefore an oddly antagonistic name for a UK company using […]
Bond Investors Agree With the Fed…For Now
The Federal Reserve has brought transparency to their decisions. The famous “blue dots” which show visually each FOMC voting member’s forecast for rates provides insight into their thinking, even if it doesn’t attach names to each dot. We’ve come a long way from Alan Greenspan’s Senate testimony, “Since becoming a central banker, I have learned […]
Another MLP Jumps Ship
Last week Antero Midstream (AM) became the latest MLP to simplify their structure. This is further evidence of the declining opportunity set for MLP-dedicated funds, and cause for investors to seek exposure to energy infrastructure that goes beyond MLPs to include corporations (see The Uncertain Future of MLP-Dedicated Funds). Like many MLPs before them, Antero […]
Rising Rates Reflect Strong Pipeline Fundamentals
Will rising interest rates hurt pipeline company stocks? Ten year treasury yields are at 3.25%, a seven year high. The bond market is commanding the attention of equity investors once more. The high yields on MLPs have long attracted income-seeking investors. A common valuation metric is to compare the sector’s yield with the ten year […]
Can Anyone Catch America in Plastics?
Ethane prices recently hit a four year high. Although this garnered far less attention than the crude oil rally, increasing supplies of ethane is an unappreciated element of the Shale Revolution. “Dry” natural gas consists of methane, most commonly supplied to residential gas stoves but also increasingly used by power plants to produce electricity. “Wet” […]