East Daley: Produced Water Volumes Expected to Reach Unprecedented Levels Creating Midstream Infrastructure Opportunities Through 2022
February 22, 2019
East Daley’s Dirty Little Secrets annual report outlines that $4.1
billion in new infrastructure will be needed to support the 51% water
supply growth in the Permian basin alone, providing opportunity for
water-focused midstream companies like Crestwood (CEQP), Summit (SMLP),
Targa (TRGP), Western Gas (WES) 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 the
midstream and upstream energy sector, released “Dirty Little Secrets
– Market Fears Create Historic Opportunity in the Midstream Sector,”
late last month. The 200+-page report details the opportunities and the
risks across 27 companies in the midstream sector by subdividing their
cash flow at an asset-level, providing key insights and EBITDA forecasts
for 2019 and beyond. The 2019 report includes a deeper look into
new infrastructure opportunities, while long-haul infrastructure CapEx
spend is likely to decline, enterprising management teams will use 2019
to position themselves for the next set of growth segments, including
water, NGL exports and natural gas exports.
“The growth in produced water volumes will drive the need for
significant capital investment to manage water handling and disposal,
and if the industry doesn’t respond quickly, it will have serious
ramifications on future production,” said Justin Carlson, VP and
Managing Director, Research at East Daley Capital. “While the market is
well-aware of the coming surge in oil production, it is just now
beginning to consider the ramifications of the unprecedented produced
water volumes that will come with this growth in oil production.”
Historically, produced water has been handled on an as-needed basis and
controlled mostly by producers since disposal wells are presently
located near sources of oil and gas production. The 2019 Dirty Little
Secrets report digs deeper into the key driving factors behind the
increase in volumes as we explore the impact of this major theme and the
trickle-down effect to several midstream companies.
Contact
East Daley to dive deeper into insights within 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 200+-page report will also provide a
crude, NGL and natural gas outlook as well as an in-depth analysis on
several key themes including U.S. crude oil supply projected growth, the
record level DUC inventories and efficiencies that will be gained and
more.
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