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..
Buffett’s Hedge Fund Bet
We alluded to this in May’s newsletter. About to lose a $1MM bet with Warren Buffett over whether hedge funds could beat stocks over ten years, hedge fund investor Ted Seides has brazenly shunned obscurity and instead offered an amusing public justification. It can be summarized thus: although I lost money I wasn’t wrong. I’ll […]
Oil Futures Say Shale's Here to Stay
A couple of months ago (see Why Shale Upends Conventional Thinking) I promised to spread constructive thoughts about Master Limited Partnerships (MLPs) across the ensuing weeks and months rather than use them all up on the first drop in prices. Two months and several percent later such parsimony was well advised. If your preference is […]
U.S. Oil Output Continues to Grow
We’re in earnings season again, and last week we listened to US Silica’s (SLCA) conference call on Wednesday morning. Weakness in MLP prices due to softer crude oil is incongruous with the positive outlook communicated by SLCA’s CEO Bryan Shinn. Volumes and pricing were both up 15% quarter-on-quarter, with sand volumes in their Oil and […]
MLPs and Tax Reform
We’ve had a number of questions over the past 24 hours about the impact of the White House tax proposal on Master Limited Partnerships. Therefore, we’re posting our thoughts now rather than in our normal Sunday morning missive. There’s not a great deal of specifics so far, but we’ve put together a table illustrating how […]
MLP Investors Not Yet Convinced
Investors in Master Limited Partnerships (MLPs) have long become accustomed to daily fluctuations in crude oil affecting sentiment for the sector. The slide describing midstream infrastructure as a toll model with limited commodity sensitivity has been dropped from client presentations. It’s no longer credible. The Shale Revolution has shifted the industry from one of stable […]