Archive for the ‘Energy’ Category
Saturday, September 27th, 2008 |
Barron’s published an interesting interview with Jay Rosenberg, manager of the First American Global Infrastructure fund. According to Rosenberg, pipelines and infrastructure related companies are attractive in the current economic environment because they offer stable cash flows. Specifically, Rosenberg says:
…we are generally much more focused on those companies that transport petroleum — both crude refined products — and natural gas. But they do so in a way that is very contractual in nature and where their earnings don’t fluctuate very much based on the volumes that they are shipping. The company that best typifies what I’m talking about would be Enbridge (ENB), in particular because of the contractual nature of its gas load. Another company that we like in is Kinder Morgan …whose institutional shares (KMR) we own. Kinder Morgan has a fantastic portfolio of pipeline assets but also has some of the best unique storage assets in the US…
Related Links:
Barron’s Article (subscription may be required)
Posted in Energy, MLP Investing, Midstream MLPs | No Comments »
Tuesday, December 11th, 2007 |
Financial publication The Economist recently released its annual World in 2008 edition, in which it predicts natural gas to grow a healthy 3.4% in 2008. Further, per the article, the International Energy Agency expects natural gas to become the 2nd largest primary energy source worldwide by the year 2015.
Posted in Energy, Natural Gas | No Comments »
Tuesday, September 25th, 2007 |
Per the Wall Street Journal, NRG, Inc. is planning to submit an application to the Nuclear Regulatory Commission to build 2 new reactors at the South Texas nuclear station. The problem: NRG has never built a nuclear plant before. The move comes as many energy companies scramble to qualify for federal incentives outlined in the Energy Policy Act of 2005.
While many agree nuclear power is much cleaner than more traditional energy sources, the risks of operating these plants can be substantial. Domestic terrorism immediately comes to mind - but an attack on a nuclear facility is very unlikely. However, as we saw at Chernobyl, accidents pose a huge risk and can be extremely devastating - rendering entire areas uninhabitable. When you also consider the fact that the US doesn’t even have a repository today for disposing of radioactive waste from existing reactors, the nuclear option seems less attractive. In my opinion, we need to think long and hard before we jump in head first on this one.
Posted in Energy | No Comments »
