PYPE News and Press, ETRACS NYSE Pickens Core Midstream Index ETN due August 20 2048 From 10/25/22

Summary OPEC+ agreed to impose deep output cuts of 2 million barrels per day starting in November, expecting to spur a recovery in crude prices, despite calls from the U.S. to increase production to prop up the global economy. The European Union has approved the eighth round of sa...

Summary Energy infrastructure companies continue to make strides with clean energy initiatives – announcing new partnerships, projects, and acquisitions. From renewable fuels to carbon capture to hydrogen, the provisions in the Inflation Reduction Act support clean energy i...

Summary The Organization of the Petroleum Exporting Countries and its allies on 5 October announced plans to reduce oil production quotas by 2 million barrels a day (b/d) starting in November. While the oil market has rallied on the OPEC+ announcement, this retracement is rather m...

Summary RICs cannot own more than 25% MLPs, and as a result, these funds tend to have lower yields than C-Corp funds that are 90-100% MLPs. Investors can gain exposure to MLPs through exchange-traded notes, which are unsecured debt obligations of an issuer. Investors can gain ...

Summary There are two types of MLP funds – those structured as RICs, which own up to 25% MLPs, and those structured as corporations, which tend to be 90-100% MLPs. Similar to direct MLP investment, return of capital distributions from an MLP fund structured as a corporation...

Summary The energy markets have been volatile for most of 2022, continuing a two-year trend that dates to the early days of the coronavirus pandemic. The rising rig count and share buyback and M&A activity in midstream, especially in the Permian Basin, indicate strength in the...

Summary MLPs are pass-through entities that enjoy special tax treatment. As pass-through entities, MLPs avoid the double-taxation associated with investments in C-Corporations. Typically, 70-100% of MLP distributions have been considered a tax-deferred return of capital, which mea...

Summary Recent U.S. legislation alters the trajectory of GHG emissions and expands the opportunity set for midstream issuers. The bill enhances and expands the incentives for a diverse array of investments, enabling decarbonization across the U.S. economy. The strength of IRA ...

Summary Oil prices have seen three straight months of price declines and are down more than 30% from their relative high in June, but energy stocks have been relatively resilient, particularly MLPs. Much of the weakness in oil prices has been driven by demand concerns related to t...

Summary Following the hawkish comments from Jackson Hole, it seems like the dynamic seen for much of 2022 is set to continue. Less sensitivity to interest rates may also work in energy’s favor. Positive changes in recent years to the financial positioning of midstream c...