East Daley: U.S. Oil and Gas Midstream Sector Positioned for Strong Growth Amidst Growing Uncertainties in a Volatile Oil Market
January 8, 2019
East Daley’s forecasted adjusted-EBITDA numbers are above consensus
for the majority of the 27 midstream companies covered as tailwinds
drive growth despite crude volatility, the downturn in liquids prices,
natural gas oversupply considerations and company-specific treadmills in
2019.
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 in December 2018
forecasting a positive midstream outlook for the 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 Outlook reviews the high-level expectations for 2019 as well
as how headwinds like the downturn in liquids prices, a potential
natural gas oversupply and the speed of company-specific treadmills
could impact the midstream sector moving forward.
“U.S. production growth is driving value performance by shifting global
dynamics like OPEC and Canada supply cuts and the ~1.3 MMB/d global
demand growth realized each year over the last decade; however,
investors should be cognizant of the treadmill their company is running
on and how it will mitigate or offset expansion growth in 2019,” said
Justin Carlson, VP and Managing Director, Research at East Daley
Capital. “East Daley will go into further detail in our Dirty
Little Secrets Annual Report including several
key themes: The North American Supply Glut in Gas, Evolution of the
Crude Constraint, Financial Gravity and Growth and more.”
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 27 companies that East Daley covers. This report will be
expanded upon in East Daley’s definitive guide to understanding the
midstream sector, Dirty
Little Secrets, which will be released later this month.
Contact
East Daley for your complimentary 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
O: 720-372-2962
lschellenberg@eastdaley.com
5161
East Arapahoe Road, Suite 411
Centennial, CO 80122