When you examine the assets, contracts and other details of a midstream company using a fine-toothed comb, you can gain a fuller, more useful understanding of the firm’s value and growth prospects. With such a thorough analysis, one thing that becomes clear is that vertically integrated midstreamers—those with interconnected processing, pipeline, fractionation and storage assets—tend to do better than those whose facilities are scattered and disjointed. Why? Because by controlling the midstream value chain—all the way from wellhead to end-user—they flow product through multiple assets, filling capacity and gaining revenue each step along the way. Today we continue our review of highlights from a new East Daley Capital report that examines the inner workings of more than 20 U.S. midstream companies.
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