Plunging temperatures this winter are doing in Texas what scorching weather did in California this summer. That’s mainly proving natural gas is absolutely indispensable to America’s energy needs, and most probably will be for decades to come. In California last summer, prices for electricity spiked and blackouts loomed as the state’s solar-heavy power grid was unable to handle the demand surge. In this Texas’ winter, the combination of unprepared infrastructure, a nuclear plant shutdown, frozen wind power facilities and massive demand for natural gas heating triggered basically the same thing.
Single digit temperatures, record snowfall, millions of utility customers without service, nearly one-third of the state’s power generating capacity shut down and spiking electricity prices: That’s the damage so far from the Great Texas Power Crisis of 2021, which continues wreak havoc across the Lone Star State.
This week, the incoming Biden administration filled out much of its prospective energy and environment team with pragmatists,signaling a focus on incremental measures rather than the dramatic and disruptive.
In investing, economics always wins over politics. That’s worth remembering at a time when energy midstream and pipeline companies are unloved by investors, and many advisors and media personalities forecast sector doomsday.
Despite the worst market conditions for US midstream companies in at least a generation, stability and sustainability were the themes of Kinder’s Q3 results and guidance this week.
What do super major oil company Chevron Corp (NYSE: CVX) and leading US rooftop solar installer Sunrun Inc (NSDQ: RUN) have in common? They’re on the leading edge of a building wave of energy mergers and acquisitions.
We follow up last month’s Q&A with comments based on what we’ve seen in energy companies’ Q4 results and guidance for 2021, since the previous issue of EIA earlier this month. Save the date for our next members-only web chat on February 25 starting at 2 pm for more on individual companies and other questions.
As we’ve pointed out, most companies were quite proactive last year adjusting to the impact of the pandemic on energy demand. And with benchmark North American oil prices pushing toward $60 a barrel this month, it’s a fair bet management teams’ confidence has increased that current dividend levels can hold.
Energy Transfer LP (NYSE: ET) is buying fellow High Yield Energy List member Enable Midstream Partners (NYSE: ENBL) in an all-stock deal valued at $7.2 billion, including assumed debt. The purchase includes the general partner interest held jointly by Centerpoint Energy (NYSE: CNP) and OG&E Energy (NYSE: OGE), both companies’ combined nearly 80 percent limited partner interest and the remaining publicly traded shares.
As the world’s premier oil services company, Schlumberger Ltd’s (NYSE: SLB) earnings often provide valuable clues about the near and long-term direction of the energy business. What stands out from the company’s Q4 numbers and guidance?
Sometimes, the best news is no news. That’s the case so far with the latest round of dividend declarations, with zero Energy and Income Advisor coverage universe companies announcing payout cuts.
Elliott and Roger on Feb. 25, 2021
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