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.
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. […]
Emerging Markets: Promises Unfulfilled, Time to Upgrade into MLPs
Most MLP investors are attracted by the regular distributions paid out by midstream infrastructure businesses. Some though, are wary of a repeat of the heightened volatility of 2015 even though evidence increasingly supports our analysis from early last year that an improbable confluence of circumstances was responsible (see The 2015 MLP Crash; Why and What’s […]
What Matters More, Price or Volumes?
If you talk to investors about U.S. energy infrastructure, you’re pretty soon going to get to crude oil. A view on one is seemingly predicated on the other. Some investors mutter darkly about assertions in years back that Master Limited Partnerships (MLPs) are a toll-like business model with limited sensitivity to commodities. Although it remains […]
Why Shale Upends Conventional Thinking
Long time subscribers will recall that back in 2015 this blog sought ever more creative and different ways to communicate the same message, which was that MLP prices had fallen far enough and represented compelling value. Bear markets have an unfortunate tendency to last longer than their opponents would like. Although the sector rebounded strongly […]
MLP Investors Digest Supply
My partner Henry Hoffman and I spent Thursday last week at the Capital Link MLP Investing Forum in New York. The mood was cautiously optimistic but certainly wary of another commodity-linked swoon in prices. Meeting one-on-one with company managements is often the best part of such events. We had a very useful discussion with Crestwood’s […]