Simon Lack | TalkMarkets | Page 3
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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Fewer MLPs And American Exceptionalism
The diminishing number of MLPs has started to draw attention from sell-side analysts. Morgan Stanley’s Robert Kad wrote in his Midstream Weekly that consolidation was likely to, impact active manager mandates that have been dedicated to the sector.
An Uncontroversial MLP Merger
Energy Transfer’s acquisition of Crestwood highlights the shortcomings of the proposed merger of Oneok with Magellan Midstream. Because Energy Transfer and Crestwood are both MLPs, combining the two doesn’t constitute a taxable event for unitholders.
Alerian MLP Fails Its Investors Again
Last week, the Alerian MLP ETF (AMLP) announced a reduced quarterly distribution. Since its 2010 launch through the end of June, AMLP has returned 2.61% versus its benchmark of 5.02%, a big underperformance for a passive ETF. Taxes are a reason why.
Management Stumbles; Getting Less From Our Power Sources
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.
Liquefied Natural Gas Growth Faces Few Headwinds
Exxon Mobil is not typically associated with Liquefied Natural Gas but they are planning to double the volumes they handle by 2030, to 40 million tons pa.
Environmentalists Opposed To Windpower
Climate extremists have a well deserved reputation for a simplistic approach to solving the complex problem of curbing CO2 emissions without impoverishing us all.
Stocks Aren’t Cheap
The Equity Risk Premium is a measure of the relative attractiveness of stocks versus bonds.
Situations We’re Following
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 Permits issued by Federal agencies were on many occasions rescinded by judges.
More Thoughts On Oneok And Magellan
Wall Street analysts are predisposed to be supportive of management’s M&A activities. Hence the response of sell-side analysts to Oneok’s proposed acquisition of Magellan Midstream is one of mild surprise that stops short of overt criticism.
Oil And Pipelines Less In Sync
The relationship between crude oil and pipelines exhibits the qualities of a copula distribution.
Why Keep Money At A Bank?
I looked through First Horizon Bank’s 10K last week. They were in the news because Toronto Dominion canceled their merger agreement due to uncertainty about when they might receive regulatory approval.
The Inflation Reintroduction Act
Inflation has been 1% or more above the Fed’s 2% target for two years. Excessive Covid stimulus was part of the cause. The IRA shows that parsimony still has no place in setting US budget priorities.
Always Cheaper By Sea
It costs one cent to ship a can of beer 3,000 miles, approximately the narrowest distance across the north Atlantic Ocean. That statistic reminds how waterborne trade has always been the cheapest way of moving goods. Moving a sweater costs 2.5 cents.
The World Wants More American Gas
First Citizens Bancshares has agreed to buy most, but not all, of Silicon Valley Bank’s (SVB) carcass from the FDIC. They’re acquiring $72BN of loans at a discount of $16.5BN.
Fed Catches A Few Gullible Bankers
Central bank strategy for many years has been to slowly squeeze the commercial return out of the government bond market. The banking system has responded by steadily lengthening the duration of its assets.
The Pragmatic Energy Transition
If you accept that solar and wind are better for the environment, they are certainly not more efficient. They are much less energy dense which means they require more land.
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