The upstream business of integrated energy players is highly exposed to the volatility seen in oil prices. Also, the spike in input price in refining activities is making the outlook gloomy. Yet, these players seem set to conquer such challenges.

SL Advisors partner Henry Hoffman spent a couple of days last week at the Wells Fargo Midstream and Utilities Symposium. He had the opportunity to meet with many of our portfolio companies and drew some useful insights.

The Mountain Valley Pipeline has suffered countless delays because of continued legal challenges from environmental extremists. Permits issued by Federal agencies were on many occasions rescinded by judges.

Earnings for pipeline companies are generally devoid of excitement unless steady growth gets you animated, such is the stability of most business models. But 1Q22 earnings were full of positive surprises.

The energy sector has long been criticized for reinvesting too much capital back into its business, without ensuring that such investments exceed their cost of capital.