Chris Sighinolfi rejoins The Stock Podcast for a follow-up interview where he talks about the current state of midstream. Tune in to hear Chris talk about investor sentiment, the role of ESG (environmental, social, and governance) mandates in the midstream space, and his perspectives on distribution cuts in the sector.
Energy
Barry Davis is the CEO of EnLink Midstream, LLC (NYSE: ENLC), an integrated midstream company serving the oil and gas industry. ENLC operates gathering, processing, compression, transportation, and fractionation assets. Tune in to hear Barry describe ENLC’s operations and to hear him talk about current investor sentiment in the oil and gas space, the benefits of the c-corp structure for midstream, and his thoughts around the distribution.
NRG Energy’s CFO Kirk Andrews rejoins The Stock Podcast to provide a business update. Tune in to hear Kirk describe NRG’s path to investment grade and what that could mean for the equity value of the company.
NRG is an integrated power producer. The company owns generation assets that primarily sell power at wholesale prices. NRG also operates a large portfolio of retail electricity companies. The integrated nature of NRG’s asset portfolio provides investors with stable cashflows. When power prices are high, the generation business benefits. When power prices are low, the retail business benefits. It’s an impressive mousetrap with high barriers to entry.
Kris Kelley is the founder and managing partner of Legacy Ridge Capital Management, a private investment firm that Kris started in 2018, shortly after he left Janus Henderson Investors. Kris has some strong views when it comes to the money management industry, views I personally agree with and ones I think every investor should hear. Kris is a value-focused, contrarian investor who believes the best way for active managers to serve their investors is through highly concentrated portfolios.
Now, if you were to ask a hundred value investors who had the greatest impact on their investment philosophy and principles, I’m sure you’d hear a lot of the same names – Warren Buffett, Charlie Munger, Ben Graham, Seth Klarman, and Stanley Drukenmiller. These investors have most certainly had an impact on me, but Kris has hands-down had the greatest impact on my investing philosophy….and that’s because Kris was my mentor during my six years at Janus. He’s one of, if not the greatest investors I know personally, he lives and breaths value-investing, and the perspectives he shares in this interview should open everyone’s eyes to a flawed industry.
Vistra Energy’s CEO rejoins The Stock Podcast to provide an update on the VST stock thesis. It’s always a pleasure to have Curt on the program to talk about his company and provide updates on the investment story. VST is one of my personal favorite investment ideas and Curt does a fantastic job of highlighting the key elements of the investment thesis. If you’d like to tune in to the first interview with Curt, click here!
Professor Joshua Landis is the Director of the Center for Middle East Studies at The University of Oklahoma. Prof. Landis joins The Stock Podcast to discuss the recent Saudi oil attack. On Sept. 14, 2019, the world awoke to the news that numerous drones and scud missiles hit Abqaiq, the world’s largest oil processing facility. The attack resulted in 5.7 million barrels of oil production capacity going offline, which equates to about 6% of global oil production. The event was the single largest loss of Saudi oil production in history. Immediately after the attack, Yemen’s Iranian-backed Houthi’s claimed responsibility. However, Prof. Landis is convinced that Iran is ultimately responsible, and the country with the most to gain from an attack on Saudi oil infrastructure.
Mike Rothman is the President and Founder of Cornerstone Analytics, an independent research firm that provides macro energy research. Mike is an industry veteran, having covered the oil market sector since 1984. He started his career at Merrill Lynch, built the energy research platform at ISI, and has attended OPEC meetings since 1986. Mike joins The Stock Podcast to discuss the global oil market, capacity reserves, and supply following the recent attack on the Abqaiq oil processing facility. On Sept. 14, 2019, the world awoke to the news that numerous drones and scud missiles hit Abqaiq, the world’s largest oil processing facility. The attack resulted in 5.7 million barrels of oil production capacity going offline, which equates to about 6% of global oil production. The event was the single largest loss of Saudi oil production in history.
Duke Austin is the CEO & COO of Quanta Services (PWR). Quanta provides E&C contracting services and comprehensive infrastructure solutions for electric and gas utilities, oil and gas companies, and the communications industry. Tune in to hear Duke describe his business, the outlook for US energy infrastructure and 5G build-out, and the financial goals Quanta is targeting.
Mark Harding is the CEO of Pure Cycle Corp (PCYO), a growing water utility in Denver, CO. Mark rejoins The Stock Podcast to talk about the progress his company has made on the first two phases of Sky Ranch, a master plan community his company has been developing over the past decade. Mark also provides his perspectives on the oil and gas industry in the state of Colorado, his thoughts on the valuation of PCYO stock, what he’s been hearing from investors, and some insight into how he’s currently thinking about shareholder returns.
Meg Gentle is the CEO of Tellurian Inc (ticker symbol TELL), a company that is developing a massive LNG export terminal in Louisiana called Driftwood. Meg joins The Stock Podcast to talk about Tellerian Inc.’s asset portfolio, US energy exports, and the LNG industry. If you don’t know what LNG is, you really need to listen to this interview with Meg. LNG is one of the fastest growing exports in the US. Why? Because the cost to produce natural gas in the US keeps falling, and with growing domestic supply, this commodity needs a home. And it’s companies like Tellurian that make it possible to send the natural gas to international markets. At the time this interview was recorded, Tellurian Inc. had a market cap of $1.9B, nearly $60M of debt, and a little more than $130M in cash, bringing the total enterprise value to just shy of $1.8B.
To summarize some of the key points, Tellurian is developing the Driftwood LNG export terminal. But what’s really interesting about Tellurian compared to other LNG companies is that they’re building an integrated system. That means Tellurian won’t just liquify the natural gas, but they’ll own a piece of the production, transportation, and liquefaction.
And by building an integrated LNG business, that essentially gives the Tellurian full control of its future. To put things in context as to why LNG exports are such a big deal, consider that about a decade ago, the US was importing LNG. But something interesting was happening in the oil patch during the early 2000s. Some small, intrepid energy companies were developing a new way to extract oil and gas from something called shale. As the frackers perfected this new method of oil and gas extraction, production costs came down and supply started to grow very rapidly. With the growth in domestic supply, natural gas prices declined precipitously. While it may not make gas producers super happy, the price of natural gas in the US has declined to the extent that the country will soon become one of the largest LNG exporters in the world. For producers, at least there’s a volume story!