infrastructure PM @ CBRE Investment Management. For personal stuff, find me @dadlifting...not investment advice.
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Joined February 2010
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It is knee jerk anti data center selling, seems silly to sell down CEG, WMB and others while bidding up the actual hyper scalers, but the market does that some times
So they get DJ basin assets and have independence, but growth outlook for dividend is limited beyond next year
It’s ok, better than several worse outcomes that CVX could have pursued to reduce the above market contracts HESM had in Bakken. Could have lowered and extended contract, could have bought in HESM for cheap.
HESM going to take lower fees in exchange for CVX’s interest in HESM, will be independent
Chevron will divest Hess Midstream interests and DJ Basin crude-midstream assets; it estimates a USD 3–4B after-tax special-item loss at closing. via Chevron 8-K sec.gov/Archives/edgar/data/… #AFELeaks
Wells Fargo saying rates are higher than normal and margins higher for these assets, so 8.5x 2027…not sure if they have to build a plant to get to that multiple
Interest rate spikes, data center headline pushback hurting power demand story into elections, general underperformance of all things non tech. The future is bright for midstream, getting anyone to care is the hard part, although last few years of strong performance has been nice
Another headline tonight that WES is close to acquiring KNTK, we are doing deals everybody!
ENB buying Tallgrass crude business for 10-11x ($2.55bn) and over equitizing with C$2.6bn equity offering at 3.5% discount. Definitely strategic assets, but no specifics on what the multiple could be worked down to over time with synergies…
Tough to follow Teague when I’m worried he might not make it through the comments #epd