Investments

The Shale Revolution created enormous opportunities for U.S. midstream companies. But opportunities are only that. It’s what individual midstreamers did with those opportunities through the 2010s — the decisions each made on where to invest and what to invest in — that will help determine how well they will do over the next decade and beyond. And the best way to assess the wisdom of these investments is to examine them one by one, and consider their locations, their exposure to risk and their potential for growth. Today, we discuss highlights from the newly released company-by-company portion of East Daley Capital’s “Dirty Little Secrets” report.

Yesterday the folks at RBC Capital Markets issued an excellent research piece titled “Cross-Sector Implications of North America Energy Supply Chain Evolution.”  It is a look at the shale revolution from the perspective of a supply chain – the linkages between interconnected businesses involved in the development, extraction and production of liquid and gas hydrocarbon energy.  The 31 page report makes some great points about the fundamentals of today’s hydrocarbon markets and recommends stocks that are expected to benefit from these developments.  I thought it would be useful to summarize the high points of their investment thesis here.  You’ll need to contact RBC if you want to see the report and its investment strategies.