EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors.
Coal Trade Is Growing
American coal exports are booming. Exports of thermal coal rose 26% last year, to 44 Million Metric Tonnes (MMTs). This is mostly burned to produce electricity. We also exported 46.5 MMTs of metallurgical coal, typically used in industrial processes such as steel manufacture. Shipments of thermal coal to India doubled, to 14.1 MMTs, close to […]
4Q Earnings Wrap
Earnings for 4Q23 are almost complete. Most companies came in at or a few per cent ahead of market expectations. Cheniere (CEI) beat sell-side estimates by 11%, continuing a remarkable run. They are targeting a 1:1 ratio between buybacks and debt reductions and based on their long run desired share count should be retiring 12-13% […]
What Investors Ask Your Blogger
Recently I’ve given presentations to a couple of investment clubs in Naples, FL. Usually I speak about midstream energy infrastructure, but I was also asked to expand on Our Darkening Fiscal Outlook, recently published on our blog, The Q&A is always enjoyable at such events. Below are some common themes that came up. Don’t weak […]
Our Darkening Fiscal Outlook
There are two ways in which our looming fiscal catastrophe draws closer. One is through the passage of time, as entitlements grow with more aging Medicare recipients. The other is through worsening projections from the Congressional Budget Office (CBO). Both are happening. Start with interest expense. In the CBO’s May 2022 ten year Budget and […]
LNG Pause Will Boost Asian Coal Consumption
Criticism of the White house pause on LNG approvals continues. Williams Companies’ CEO Alan Armstrong said it would cause some countries contemplating the construction of new LNG import facilities to hesitate. The clearest result will be increased coal consumption since it’s cheap and widely available across Asia. Shell expects LNG demand to increase by 50% […]