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.
The Strong Fundamentals Underpinning Pipelines
Recently a long-time investor Jeff Waters suggested that it might be interesting to dig a little deeper into the valuation metrics that make midstream energy infrastructure such an attractive sector. It resulted in a podcast interview, which you can access here. The roughly 2/3rds drop in growth capex since 2018 underpins an improving cash flow […]
Will Energy Price Caps Work?
Few should be surprised that Russia has shut off all natural gas to western Europe, on a timing of their choosing not Germany’s. EU countries and the UK are implementing price controls and residential subsidies in various forms to cushion the blow from electricity prices that have risen as much as 10X over the past […]
How Occidental Invests In Lower Taxes
Occidental Petroleum (OXY) has a checkered history. In 2019 CEO Vicki Hollub snatched Anadarko away from Chevron (CVX), who already had a signed deal in place. CVX CEO Mike Wirth showed financial discipline that’s rare in such cases and declined to get into a bidding war. Instead, they walked away with a $1BN break-up fee. […]
From Top Hats To Tightening
The beginning of my career in finance overlapped with the presence of morning suits on the floor of the London Stock Exchange. Mullens & Co, founded in 1786, held the privileged role of “government broker”, meaning they transacted directly with the UK Treasury and were an important intermediary in financing the UK government. As recently […]
The High-Priced Energy Transition
“Thankfully, energy has been the bright spot in our client portfolios,” said investor Emily Jaffe. We had just sat down to enjoy a most convivial lunch with Emily and her business partner Jeff Waters of OFC Wealth Management. In the photo below we are toasting the performance of the pipeline sector this year. Superstition has […]