INVEST IN ENERGY INFRASTRUCTURE. BE PART OF AMERICA’S ENERGY REVOLUTION.

America’s midstream energy infrastructure, the pipelines that move U.S. energy supplies to market is crucial as we strive for American Energy Independence.

Momentum Crash Supports Pipeline Sector

Breaking News — Drone attack disables Saudi crude ouput Although we don’t normally highlight the favorable geopolitics of U.S. midstream energy infrastructure, this news does emphasize that much of the world’s crude oil comes from unstable regions. See WSJ story U.S. Insulated From Possible Supply Shock After Saudi Attack Momentum Crash Supports Pipeline Sector The […]

Climate Promises from Politicans: America Will Do Better

Over 60% of U.S. liquid hydrocarbon production comes via hydraulic fracturing (“fracking”).  This includes 7.75 million Barrels per Day (MMB/D) of crude oil (total 12.4 MMB/D), and three  MMB/D of Natural Gas Liquids (NGLs, including propane and butane) out of five in total. In addition, shale natural gas production  is 68.5 Billion Cubic Feet per […]

MLPs: Five Years On, Cheaper Than Ever

The end of August was the five year anniversary of the peak in MLPs. Had it not been for the distraction caused last week by a more compelling story (see Blackstone and Tallgrass Further Discredit the MLP Model), we would have already noted this milestone. The Alerian MLP index, albeit much changed and diminished since […]

Blackstone and Tallgrass Further Discredit the MLP Model

​To be an SEC-registered asset manager is to submit to extensive rules of behavior, all with the objective of protecting the clients. Where a portfolio manager invests personally alongside her clients, creating a desirable alignment of interests, regulations require that the client’s interests are placed ahead of the manager’s. The asset manager has a fiduciary […]

Private Equity Sees Value in Unloved Pipelines

Last week the Financial Times wrote about the dwindling conviction of believers in the Shale Revolution (see Why US energy investors are experiencing a crisis of faith). Religion is an appropriate metaphor – secular values such as Enterprise Value to EBITDA or forward free cash flow yield have offered scant protection. To invest in energy […]