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.
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 […]
The Slow Shift in Power
The U.S. produces electricity from diverse sources; burning coal and natural gas each provide just under a third of our needs (natural gas is steadily displacing coal, which is good for those MLPs that transport, process and store natural gas). Nuclear is 19%, with the rest being other renewables of which hydro is the biggest. […]