America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors..

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Oneok Does A Deal Nobody Needs

Oneok Inc (OKE) surprised sell-side analysts with their Mother’s Day acquisition announcement of Magellan Midstream, LP (MMP) at a 22% premium. Anticipated synergies of $200MM aren’t that big for the $18.8BN transaction value. Management expects that to reach $400MM+ but nobody can ever tell after the fact whether it happened or not. And given the […]

4% Inflation Is Our Least Bad Option

Last week the WSJ warned that We May Be Getting Used To High Inflation. Only 9% of respondents in a recent survey think inflation is our most important problem. Government leadership (presumably the absence thereof) and “the economy in general” were both bigger concerns. Americans are learning to live with higher inflation. The University of […]

Oil And Pipelines Less In Sync

The relationship between crude oil and pipelines exhibits the qualities of a copula distribution. This was suggested to us last week by a highly numerate financial advisor, commenting on the tendency of the midstream energy infrastructure sector to have its biggest falls when oil is also collapsing. It is an unfortunate historical truth that a […]

Why Keep Money At A Bank?

I looked through First Horizon Bank’s (FHN) 10K last week. They were in the news because Toronto Dominion (TD) canceled their merger agreement due to uncertainty about when they might receive regulatory approval. FHN’s stock slumped to below $10. The merger price, agreed in February of last year, was $25. FHN CEO Bryan Jordan told […]

The Inflation Reintroduction Act

The Inflation Reduction Act (IRA) may be the least appropriately named legislation in recent memory. That doesn’t detract from its impactfulness. Ever since its passage last summer, energy companies have been exploring ways to benefit from the uncapped tax credits and other subsidies available. The IRA provided an improved tax credit of $180 per tonne […]