East Daley: Strong U.S. Oil and Natural Gas Production and Global Demand Underpin a Solid Midstream Outlook Heading into 2019

Despite lackluster market sentiment for U.S. midstream companies,
energy fundamental tailwinds will propel the sector to new heights in
2019 for companies like TC Pipelines (TCP), Tallgrass Energy (TGE),
Enable (ENBL), Pembina (PBA), Enbridge (ENB) and others.

CENTENNIAL, Colo.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/bakken?src=hash” target=”_blank”gt;#bakkenlt;/agt;–East
Daley Capital Advisors, Inc., an energy information and insights
provider that is redefining how markets view risk for midstream and
exploration and production (E&P) companies, released their 2019
Midstream Guidance Outlook Report. This is an important period for
the midstream sector, as guidance provides a first look at next year’s
earnings which can vary widely from market expectations. The Outlook
reviews the high-level expectations for the coming year as well as the
key trends and headwinds that East Daley will monitor heading into next
year. East Daley’s 2019 Outlook shows a positive midstream outlook for a
majority of companies under coverage when compared to consensus,
including TC Pipelines (TCP), Tallgrass Energy (TGE), Enable (ENBL),
Pembina (PBA), Enbridge (ENB) and others.

“The case for continued strong U.S. crude and natural gas production
growth is supported by global demand for natural gas liquids, which will
continue to have a positive impact on many midstream companies,” said
Justin Carlson, VP and Managing Director, Research at East Daley
Capital. “Even with recent 30% drop in liquids prices, East Daley
analysis shows that increased production is likely to continue into the
foreseeable future as developing countries modernize and grow.”

The analysis also indicates that company and basin-specific risks are
still present, and investors should be mindful of company-specific
activity. One example is that several natural gas producers in the
northeast, Haynesville and Rockies producing regions may be forced to
announce revised and lowered production growth rates which would have a
negative impact to some midstream companies due to an oversupply in
natural gas. The Outlook also reviews long-haul natural gas pipeline
re-contracting risks, which is a key market theme to monitor for the
coming years.

East Daley’s Midstream Guidance Outlook Report is released on an annual
basis and helps provide clarity on near-term risks, updates and the
health of the companies that East Daley covers. This report will be
expanded upon in East Daley’s Annual Report, Dirty
Little Secrets, which will be released in January 2019.

Contact
East Daley for more information on the 2019 Midstream
Guidance Outlook Report.

About East Daley Capital Advisors, Inc.

East Daley Capital is an energy information and insights provider that
is redefining how markets view risk for midstream and exploration and
production (E&P) companies. In addition to using top-level financial
data to predict a company’s performance, East Daley delivers asset and
commodity analysis that provides comprehensive, fact-based intelligence.
Supported by a team of unbiased, experienced financial and commodity
analysts, East Daley provides its clients unparalleled insight into how
midstream and E&P companies operate and generate cash flow, in addition
to commodity forecasting. East Daley uses publicly available fundamental
data and intersects that data with a company’s reported financials to
asset-level adjusted-EBITDA and distributable cash flow (DCF). The
result allows for more informed investment decisions. Founded in 2014,
the company is based in Centennial, Colorado. For more information visit http://www.eastdaley.com.

Contacts

East Daley Capital
Lisa Schellenberg
Director of
Marketing
lschellenberg@eastdaley.com
O:
720-372-2962
5161 East Arapahoe Road, Suite 411
Centennial, CO
80122