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.
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 […]
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 […]