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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..


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More on the Changing MLP Investor

Last week’s blog post, The Changing MLP Investor, received more interest than usual.  There’s no shortage of research explaining why MLPs are cheap, but it seems few stop to consider the mindset of those who decline to act on this opportunity. Sometimes it’s more helpful to understand the non-buyers. Following the collapse two years ago […]

The Changing MLP Investor

Why aren’t MLPs performing better given the fundamentals? On valuation, they should be compelling. Using EV/EBITDA (Enterprise Value /Earnings Before Interest, Taxes, Depreciation and Amortization), they are virtually on top of utilities, a point not reached either in 2008 or 2016. Typically, MLPs are valued at a higher multiple. Although like utilities, they depreciate their […]

Same Assets, Different Payout

We regularly get questions from investors about why the dividend yield on MLPs is often higher than for energy infrastructure C-corps that are in the same business. In recent years several MLPs have transferred their assets into their C-corp parent. Examples are Kinder Morgan (KMI), Targa Resources (TRGP) and Oneok (OKE). The merger of an […]

MLP Investors Learn About Logistics

We hear so often how energy infrastructure is all about pipelines and storage assets with fee-based contracts that when another part of the business pops up it can cause quite a stir. So it was that Plains All American (PAGP), one of the biggest crude oil pipeline operators in the U.S., provided an unwelcome example […]

Shale Drillers Find Efficiency Isn't Rewarded

Master Limited Partnerships (MLPs) have been reporting earnings over the past couple of weeks. For the most part they have come in as expected, with few surprises in either direction. Crestwood (CEQP) and Tallgrass (TEGP) both reported system volumes slightly higher than expected; generally though, they were unremarkable, which is the sort of boring stability […]