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.
Will We Use More Hydrogen?
Investors often ask what are the prospects for hydrogen as an energy source. In spite of Jeff Sommer’s conclusion that the market doesn’t think much about the future (see Priced For A Pragmatic Energy Transition) we think about it all the time. Hydrogen is appealing because when it burns it combines with oxygen to release […]
Priced For A Pragmatic Energy Transition
The other day a NYTimes columnist contrasted the relative outperformance of oil stocks with plunging solar and wind. He concluded that the stock market is oblivious to the threat of climate change whereas the UN and other scientists believe we must reduce Greenhouse Gas (GHG) emissions to zero by 2050. The writer, Jeff Sommer, briefly […]
Pipeline Earnings Make Travel A Pleasure
Targa Resources provided one of several bright spots among pipeline earnings last week with a 50% increase in their dividend planned for next year. Their cashflows are increasing strongly. JPMorgan projects a Distributable Cash Flow (DCF) yield of 14% for this year, rising to 16% in 2024 and almost 18% in 2025. The new $3 […]
Book Review – Elon Musk by Walter Isaacson
“I want to go make that happen” was twenty-one-year-old Elon Musk’s thought in 1992 on California mandating a 10% market share by 2003 for Electric Vehicles (EVs). Or rejecting a job building videogames, which he loved, because “I wanted to have more impact.” As a young man he wanted to colonize Mars to ensure human […]
Suppose The Deficit Matters
For our entire careers the US budget deficit has hung over markets like the sword of Damocles. It was a political issue in 1992 when Bill Clinton beat George Bush, a victory enabled by Ross Perot siphoning off Republican voters with his warnings of fiscal catastrophe. Under Clinton we briefly ran a budget surplus, part […]