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..
Guess Who’s Most Effective at Combating Global Warming
When it comes to limiting CO2 emissions, the results are not always what you’d expect. Debates about climate change often draw zealots on both sides. The common accusatory opener, “Do you believe in global warming?” betrays the binary, almost religious argument between those who think we’re wrecking the planet and those who don’t. Pragmatism is […]
Reliable Yields Are the Best
Before jumping at an attractive yield, investors should pause to consider its consistency. In recent years, traditional MLP investors were victims of one of the greatest betrayals in U.S. financial history. Older, wealthy Americans were drawn to companies that paid out most of their cashflow in distributions. For years, America’s energy came from roughly the […]
Growth & Income? Try Pipelines
The chart below is a sobering one for pipeline investors. Over the past five years, the S&P has returned 13.1% p.a., versus -2.7% for the Alerian MLP Infrastructure Index (AMZIX). An allocation to AMZIX contributed almost a 16% p.a. performance drag, such that $100 invested in the S&P500 in July 2013 would now be worth […]
It’s the Distributions, Stupid!
Jim Carville’s admonition during Bill Clinton’s 1992 run for President was, “It’s the economy, stupid!” In its August 2018 edition, The Utility Forecaster warns readers to approach MLPs “with caution.” Too risky for income investors is their conclusion. MLP buyers have been badly abused, and Chief Investment Strategist Robert Rapier reminds readers of the many […]
Running Pipelines is Easy
“A monkey could make money in this business right now.” Kelcy Warren, Energy Transfer Partners CEO, August 2nd, 2018. Presumably when Energy Transfer Partners (ETP) announces earnings next week they’ll be good. That was the clear message in the attention grabbing combination of ETP with its General Partner (GP), Energy Transfer Equity (ETE). The 1.28 […]