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.
Pipelines Shed Their Oil Sensitivity
Brent crude currently trades for around $4 per barrel less than a year ago. Back then Goldman Sachs published another highly convincing research report predicting higher oil driven by increasing demand and chronic underinvestment in new supply. Since then Jeff Currie has left the firm, hopefully not because of his not yet vindicated commodity super […]
Report From Wells Fargo Conference
SL Advisors partner Henry Hoffman spent a couple of days last week at the Wells Fargo Midstream and Utilities Symposium. He had the opportunity to meet with many of our portfolio companies and drew some useful insights. Below are Henry’s notes from the event. Chatter at the Conference: Throughout the one-on-one meetings, hallway conversations, and […]
Why Pipeline Construction Is Hard
Mountain Valley Pipeline (MVP) will soon move 2 Billion Cubic Feet per Day (BCF) of natural gas from West Virginia to southern Virginia. It will allow increased takeaway capacity from the Marcellus and Utica shale plays in Appalachia. By connecting to Transco (owned by Williams Companies) it will allow for natgas to be transported south, […]
Bond Rally Boosts Pipelines
Bonds had a great month in November. The Bloomberg Agg was +4.5%. Ten year yields dropped 50 bps. Indications that the Fed will pause again were extrapolated into easing expectations as soon as next quarter. Lower yields help the relative valuation of equities, although Factset earnings forecasts are no longer trending upwards. Consequently, the rally […]
Another Climate Conference
COP28, the annual UN climate conference, starts tomorrow in Dubai in the United Arab Emirates (UAE). It’s easy to criticize the world’s efforts at reducing global Greenhouse Gases (GHGs). They over-emphasize intermittent solar and wind instead of going all in on nuclear and should replace coal with natural gas. China gets a free pass to […]