Daves Thoughts of the Week

DeWitt Capital focuses on MLPs that benefit from the increased production and use of natural gas (methane). This weekend over 200 million Americans will experience temperatures over 90 degrees.  This means electrical generatation will have to rise to meet the need for air conditioning.  Natural gas is the one fuel that represents a path forward that is both readily available and reduces carbon emissions versus the other readily available resource, coal.

Exports of natural gas to Mexico is are growing quickly, tripling  over the last three years with expectations of doubling over the next two years.  Liquified natural gas is beginning to ramp up as import facilities have been converted  to export facilities!

Although MLP stocks prices have largely traded in line with oil over the last twenty four months, that correlation is beginning to break down. We have noticed lately that MLP prices are starting to chart their own path. Natural  gas and natural gas liquids (ethane and propane) are seeing a resurgence in both demand and pricing.  DeWitt continually researches the energy infrastructure universe to discover those companies that benefit from these trends. Eventually the market will reward the increasing cash flow generated by these companies while investors enjoy the ample distributions they provide.