Simon Lack | TalkMarkets | Page 31
Managing Partner, SL Advisors, LLC
Contributor's Links: SL Advisors, LLC
Following 23 years with JPMorgan, in 2009 Simon Lack founded SL Advisors, LLC, an SEC Registered Investment Adviser. SL Advisors manages investments in energy infrastructure, including the Catalyst MLP & Infrastructure Fund (MLXIX), the American Energy Independence Fund (USAI), and separately ...more

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The Tumult In MLPs
As MLP investors are painfully aware, the stock market has been registering new all-time highs seemingly every week. Hedge fund selling was certainly cited in some quarters, but there are a lot of hedge funds and they’re always buying and selling.
Why Don’t MLPs Do Buybacks?
Ten days ago Enterprise Products (EPD) announced that they may in the future initiate a buyback of units, perhaps in 2019. But it highlights an interesting fact about MLPs, which is that they rarely do buybacks.
Downside Risks For MLPs
The Shale Revolution is a powerful recent example of why America’s system of capitalism is so enduring. We’re not just leaders in shale oil and gas, the U.S. is pretty much the only game in town.
A Futurist’s Vision Of Energy
The future of U.S. energy infrastructure will be impacted both by the increasing use of renewables for electricity generation as well as the growth in EVs and could represent an existential threat to segments of the U.S. oil industry.
Energy Sector Gathers Momentum
Although MLPs and crude oil have generally been moving together this year, in recent weeks MLPs have lagged the bounce in oil. So the natural question is, what is the catalyst that will cause investors to act on these valuation advantages?
Crude And MLPs March Higher Together
For the first half of the year, crude oil prices moved irregularly lower before bottoming in June, since when they’ve moved smartly higher. Clearly, for the U.S. energy sector, its best days are still ahead.
The Oil And Water Business
It’s seldom appreciated outside the energy industry, but drilling for oil, natural gas and natural gas liquids (NGLs) involves handling far more water than hydrocarbons. This is creating some growing challenges and investing opportunities.
A Simpler MLP Can Be Better
The road to American Energy Independence, driven by the Shale Revolution, is being navigated by regular corporations and GPs rather than MLPs.
More On The Changing MLP Investor
The Shale Revolution led MLPs to substantially increase their annual capital needs and some lost access to equity financing. The result was that acquisitions, new projects and expansions led to increased use of cash, leaving less for distributions.
The Changing MLP Investor
Why aren’t MLPs performing better given the fundamentals? On valuation, they should be compelling. Using EV/EBITDA, they are virtually on top of utilities, a point not reached either in 2008 or 2016.
Same Assets, Different Payout
Since paying dividends is a very tax-inefficient way for corporations to return value to shareholders, high pay-out ratios would be exceptionally inefficient. The recent trend is for companies to return profits via buying back their stock.
Shale Drillers Find Efficiency Isn’t Rewarded
MLP investors may feel that their patience is being tested, as the sector gyrates with crude oil while persistently refusing to appreciate as its high yields imply it should.
The Age Of Oil
Revisiting the roots of America's quest for energy independence.
What Kinder Morgan Tells Us About MLPs
Kinder Morgan reported earnings last week, including a long expected dividend hike and a pleasantly surprising stock buyback. In many ways the stock performance and corporate finance moves of KMI reflect the MLP sector as a whole.
Oil Forecasters Have To Work Harder
Those in the oil industry who take a long view increasingly worry about insufficient new supply. It’s hardly today’s problem, with crude oil back to the mid $40s as OPEC’s production cuts are offset by increased shale output.
In The Sweet Spot Of Economics And Public Policy
Only a few years ago Cheniere Energy (LNG) was investing in facilities to import Liquefied Natural Gas , anticipating that the U.S. would need to rely on foreign suppliers such as Australia and Qatar. The Shale Revolution changed all that.
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