EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES AND INFLATION HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors..
The Best Odds Aren’t In Las Vegas
Following last week’s 6.2% inflation print, eurodollar futures fully priced in 0.75% of tightening by the end of next year. The approximate rate path envisages tapering by the summer, and rate hikes commencing around the same time. Beyond December ‘23 the curve is so flat that in effect the market expects the tightening cycle to […]
Electrification Will Drive Natural Gas Demand Higher
Democrat policies have so far been more positive than many expected for the energy sector. Those regions and countries that have aggressively pursued renewables have demonstrated the challenges that arise when power is too reliant on unreliable, weather-dependent sources. Crossing a 20% share from solar panels and windmills seems to be the threshold at which […]
It Takes Energy To Keep Up With Inflation
Pipeline earnings last week provided further support for the bull market in energy. Cheniere is +67% so far this year. The strong global market for Liquified Natural Gas (LNG) caused them to increase their 2021 EBITDA guidance to a midpoint of $4.8BN, up $0.1BN. They also provided 2022 guidance of $5.8-6.3BN. The company has signed […]
Energy Demand Drives Earnings Higher
The global energy crisis is turning out to be the catalyst driving the sector higher. Years of under-investment in new oil and gas output are finally colliding with relentless demand growth. Energy investors are enjoying growing free cash flow because of reduced capex. The credit for this shareholder-friendly behavior should be shared with climate extremists […]
How Will Fed Chair Powell Respond To The Market?
A significant interest rate move has taken place in recent days that has received scant coverage from mainstream financial media. The market has priced in a more aggressive pace of Fed tightening over the next couple of years, while simultaneously moderating the outlook beyond that. This flattening of the yield curve has been reflected in […]