SL Advisors Talks Markets

Midstream earnings are in, and generally met expectations as has been the case for the past several quarters. Williams Companies (WMB) enjoyed record natural gas gathering volumes of 18 Billion Cubic Feet per Day (BCF/D). This drove 2Q23 adjusted EBITDA of $1,611MM, versus analyst expectations of $1,568MM. Liquefied Natural Gas (LNG) exporter Cheniere continued a […]

Midstream earnings have been reported for the most part and generally came in at or close to expectations. Cheniere once again surprised to the upside, with 2Q EBITDA of $1.86BN versus market expectations of $1.62BN. They modestly increased full year guidance, carried out planned maintenance on their Sabine Pass facility on schedule and for the […]

It doesn’t look like a bull market, but July was crude’s best month in more than a year with the Brent benchmark closing up almost $11 per barrel at over $84. After peaking in spring of last year following Russia’s invasion of Ukraine, crude oil has been sliding irregularly lower. Russia has found ways to […]

Criticizing the Fed is a self-indulgence afforded the rest of us unburdened with the need to actually set monetary policy. The FOMC usually provides a target-rich environment. The last couple of years have offered a sumptuous feast of mis-steps.  Start with synchronization of accommodative monetary policy with Biden’s uber-stimulus following his inauguration in early 2021. […]

The market currently assigns barely 50/50 odds of the Oneok-Magellan (OKE-MMP) merger receiving shareholder approval from both companies. When the deal was announced in May approval was judged to be highly likely, but it soon receded as analysts offered only lukewarm approval. We offered our view (see Oneok Does A Deal Nobody Needs) within a […]

Exxon Mobil (XOM) is not typically associated with Liquefied Natural Gas (LNG) but they are planning to double the volumes they handle by 2030, to 40 million tonnes pa. This would be equivalent to around 5.3 Billion Cubic Feet per Day (BCF/D). The US currently exports around 12 BCF/D although that will grow as new […]

Life after Climate Change: Better than you think by Bjorn Lomberg was recently published in the National Review. Lomberg has published several books arguing that climate change isn’t the existential disaster often portrayed in the media. His most recent is False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to […]

Climate extremists have a well deserved reputation for a simplistic approach to solving the complex problem of curbing CO2 emissions without impoverishing us all. However, poorly informed objectives doesn’t mean they have a co-ordinated approach. The growth in solar and wind power is setting environmental extremists against one another.  Take New Jersey, a state whose […]

Last year’s Inflation Reduction Act (IRA) raised the tax credit for CO2 that’s permanently buried underground. Some CO2 is used in Enhanced Oil Recovery (EOR) to help push crude out of mature, low pressure wells. It can then be pumped back into the well for permanent storage. This is Carbon Capture, Use and Sequestration (CCUS). […]

It’s almost two months since Oneok (OKE) announced their proposed acquisition of Magellan Midstream Parners (MMP). Consummation of the transaction has never looked more promising than on the day of the press release. By mid-May, the market was ascribing less than 30% odds of shareholder approval, based on the gap between MMP and the combination […]