East Daley’s Fourth Quarter Analysis Reports Upside Earnings’ Deviations Suggesting Opportunity for Midstream Investors in 2019
January 23, 2019
Despite a mixed market sentiment heading into 4Q2018 earnings’ calls,
East Daley forecasts many midstream companies to meet or exceed
consensus EBITDA expectations, including Enable Midstream Partners
(ENBL), DCP Midstream (DCP), TCP Pipelines (TCP), Tallgrass Energy (TGE)
and more.
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 Consensus
Comparison Report for fourth quarter earnings that highlights
East Daley’s views on how company earnings forecasts diverge from market
expectations. East Daley’s fourth quarter analysis indicates midstream
sector growth to continue in 2019 as 22 of the 27 companies under
coverage are expected to meet or exceed EBITDA expectations in Q42018.
“The growth trend we are seeing in Q42018 is expected to continue in
2019,” said Justin Carlson, VP and Managing Director, Research at East
Daley Capital. “The increase in cross-commodity production will have a
trickle-down effect resulting in a favorable earnings outlook for many
midstream companies.”
The strong quarter is impacting companies like TCP Pipelines (TCP) which
is 18% above consensus due to new contracts coming online and the
elimination of a contractual revenue sharing agreement, the anticipated
growth of Enable Midstream Partners (ENBL) is due to a combination of
gathering and processing (G&P) 20% y-o-y cash flow growth, new EGT
contracts and increased utilization of Enable Oklahoma Intrastate
Transmission (EOIT) and improved gas sales margins. Full details and
more information on growth for DCP Midstream (DCP) and Tallgrass Energy
(TGE) can be found in East Daley’s Consensus
Comparison Report. The report is released on a quarterly basis
and helps clients identify market opportunities by showing East Daley’s
earning expectations versus the street.
Contact
East Daley to dive deeper into future trends with East
Daley’s Dirty Little Secrets Report, the definitive guide to
uncovering investment opportunities and assessing risk in the U.S.
midstream oil and gas sector. The 150+ page report will provide a crude,
NGL and natural gas outlook as well as an in-depth analysis on several
key themes including how produced water could fuel infrastructure, U.S.
crude oil supply projected growth, the record level DUC inventories and
efficiencies that will be gained and more. Additionally, it will include
asset-level earnings forecasts, distributable cash flow based on East
Daley’s EBITDA forecasts across the 27 companies under coverage.
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