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..
Why Are Real Yields Rising?
The members of the Federal Open Market Committee (FOMC) could be forgiven for feelings of quiet satisfaction. They’ve raised short term rates higher than most observers expected, and odds of the consequent recession have been receding. The increase in the unemployment rate to 3.8% on Friday leaves it still well below full employment. Yet inflation […]
The Growing LNG Trade
Nearly three years ago, French utility company Engie pulled out of negotiations with NextDecade (NEXT) to buy Liquefied Natural Gas (LNG). Concerns about leaks during the production of natural gas (methane) were the reason. Methane is a GreenHouse Gas (GHG) that is many times more potent than CO2 over a decade or so at trapping heat in […]
Growth Is Gassy Not Oily
We’ve been critical of Magellan Midstream’s (MMP) proposed sale to Oneok (OKE) for months (see Oneok Does A Deal Nobody Needs), mostly because it forces MMP unitholders to pay taxes now that didn’t need paying and for some may never be paid. But we do agree with MMP CEO Aaron Milford that the growth opportunities […]
The Sunshine State Runs On Natural Gas
If you google “Florida solar” or “Florida natural gas”, both searches return around 150 million results. NextEra Energy, which owns Florida Power and Light (FPL), the utility that covers much of the state, is targeting zero emissions by 2045. Their 2022 ESG report says FPL expects to quadruple its solar generation capacity by 2031. They […]
Fewer MLPs And American Exceptionalism
The diminishing number of MLPs has started to draw attention from sell-side analysts. Morgan Stanley’s Robert Kad wrote in his Midstream Weekly that consolidation was likely to, “impact active manager mandates that have been dedicated to the sector.” The shrinking pool of MLPs and its impact on MLP-dedicated funds has been a developing problem for […]