THE AI REVOLUTION NEEDS ENERGY
US natural gas demand is growing to supply data centers and LNG exports. We believe midstream energy infrastructure offers predictable cash flows to investors.
Reporting On The EIC Investor Conference
Last week SL Advisors partner Henry Hoffman was at the Annual Energy Infrastructure (EIC) CEO and Investor Conference in Ventura, FL. Such events provide an opportunity to meet the executives of the companies we’re invested in. It’s important to avoid being too sold on their prospects – especially now when we have a constructive outlook on the sector. So, Henry brought a jaundiced eye and detailed questions to […]
The Return Of Inflation
Last week’s inflation print supported the value of midstream energy in a portfolio for preservation of purchasing power. We’ve noted this recently (see A Healthy Correction last paragraph). The most recent 3.8% CPI reading is driving longer term inflation expectations higher. Incoming Fed chair Kevin Warsh has his work cut out for him satisfying both […]
Midstream Earnings Reinforce Outlook
1Q earnings have been coming in to heightened expectations following strong equity performance so far this year. Energy Transfer (ET), Targa Resources (TRGP) and Cheniere (CEI) all beat median Street EBITDA forecasts and raised full year guidance. AI-driven demand for natural gas to power data centers remains an important theme. ET has described the volume […]
Oil May Be Higher For Longer
We’ve felt for several weeks that financial markets were too optimistic in expecting a rapid re-opening of the Strait of Hormuz (see Calmer But Not Resolved and A Healthy Correction). Commercial shipping can only resume once the threat of Iranian attacks is resolved, an achievement we felt was beyond the ability of military action short […]
More Pain Over There Than Here
We spent last week traveling in Austria with friends. The impact of the Iran War felt closer – and not just because an Iranian missile could theoretically hit Vienna. This part of the world is highly energy dependent. They rely on imports for just over half of their primary energy, and about the same share […]