November 11, 2021 – Seeking Alpha
Energy Transfer: The Market Stamps Its Foot And Makes A Scrunchy Face
The case for ET
I have repeatedly made the point that pipeline infrastructure is seemingly impossible to build these days, in theory accentuating the value of already built out pipes. It was the subject of a bullish article on ET about a year ago. An article put out by RBN Energy recently, echoes this theme precisely:
The market needs more midstream but in today's environment it's going to be difficult to get the deals done. Moreover, if you were somehow able to pass the Wall Street gauntlet and get producers to sign up, there are still other challenges awaiting, such as the seemingly insurmountable environmental/regulatory hurdles in hydrocarbon-averse regions like the Northeast. Just how bad could it get? Well, natural gas producers have thus far escaped the worst of Wall Street's ire, which has been largely reserved for crude oil producers. But natural gas isn't immune to it either and producers know it, which is why many are pursuing certifications that their gas is responsibly sourced.
The value of infrastructure is an intangible element, and so far the notion that existing pipes have intrinsic value above and beyond their contributions to revenue remains just a notion. Something can be true and be ignored by the market at the same time, as we all know. And, that's been the case so far and has helped to keep the price down on ET, and the entire cadre of midstream companies.
Read the full article here: https://seekingalpha.com/article/4467969-energy-transfer-the-market-stamps-its-foot-and-makes-a-scrunchy-face