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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..
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 […]
Uncle Sam Helps You Short AMLP
The Alerian MLP ETF (AMLP), with its tax-burdened structure (see AMLP’s Tax Bondage), is by design unable to come close to the return on its benchmark, the Alerian MLP Infrastructure Index (AMZI). Because AMLP doesn’t qualify for treatment as a Regulated Investment Company (RIC), it’s subject to corporate income taxes just like any other corporation. […]
FERC Boosts MLPs
The Federal Energy Regulatory Commission (FERC) became MLP investors’ new BFF last week. Only four months ago, FERC’s revised policy on allowing imputed tax expense in setting tariffs caused a memorable intra-day 10% drop and contributed to dismal 1Q performance (see FERC Ruling Pushes Pipelines Out of MLPs). Ever since, MLP investors have regarded FERC […]