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..
Washington-DC Based Energy Experts Offer Their Outlook
We had an opportunity to meet with a Washington-DC based independent research firm, specializing in energy policy and geopolitics last week. The following is from our notes on their discussion. On Iran, one principal, a highly decorated ex CIA officer and Iran expert, thought markets continue to underestimate the risk to oil infrastructure and production […]
Why Oil Production May Disappoint
E&P companies routinely drill wells but hold off completing them until a later date. Completion includes creating a cement outer wall for the well to avoid leaks, and firing holes in the exterior in preparation for injection of fracking fluid under pressure. Typically wells can be drilled in sequence, as the drilling equipment is moved […]
Pipelines Slowly Returning Cash
2020 should be the year in which pipeline companies deliver on the promised increase in Free Cash Flow (FCF). The Coming Pipeline Cash Gusher remains the strongest bull case for midstream energy infrastructure. We’ll be updating these projections once companies provide updated 2020 guidance on spending in the next few weeks. A trend towards returning […]
EnLink Aims for Positive Free Cash Flow
It’s a sign of the market’s evolving view of pipeline stocks that EnLink Midstream’s (ENLC) distribution cut was followed by a modest bounce in the stock. A cut had been widely expected, and during the conference call with analysts some questioned whether the 34% reduction was big enough. MLP investors are no longer solely focused […]