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..
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 […]
NuStar Acts Like a Hedge Fund
Last Tuesday, in a kind of return to normalcy, NuStar Energy (NS) funded an acquisition the way Master Limited Partnerships (MLPs) normally do; by issuing equity. NS is an MLP controlled by a publicly traded General Partner (GP) called NuStar GP Holdings (NSH). As we’ve noted in the past, an MLP with a GP looks […]
The Global Trade in Natural Gas
One of the many benefits of the Shale revolution has been a reversal of the U.S. terms of trade with respect to natural gas (see U.S. Natural Gas Exports Taking Off). We’ve long been a net importer and the Sabine Pass LNG (Liquified Natural Gas) facility in Louisiana was originally intended to augment pipeline inflows […]
The Folly of Leveraged ETFs
Recent weakness in crude oil has spilled over into Master Limited Partnerships (MLPs). Some connection between the two is understandable, because part of the bull case for MLPs lies in growing shale output increasing demand for energy infrastructure. Lower oil prices dampen the enthusiasm for the idea that Exploration and Production (E&P) companies will be […]