NGL demand

There’s no question, the pressures on many U.S. midstream companies have been steadily increasing for some time now, and the past few months have really tested them. Like exploration and production companies, refiners, and others in the energy space, midstreamers have seen their well-considered plans for 2020 upended by demand destruction, commodity-price gyrations, and cutbacks in capex, drilling, and production. While it may be tempting to simply wait out the last few weeks of this crazy, unforgettable year and hope that 2021 will be better, there’s actually at least some good news out there for the midstream sector, and good reason to believe that midstreamers have been positioning themselves to financially weather whatever next year may have in store. Today, we discuss highlights from East Daley Capital’s newly issued 2021 Midstream Guidance Outlook, which focuses on key trends affecting midstream asset owners.

As a most eventful decade for the U.S. energy industry draws to a close and 2020 looms, it’s a perfect time to consider what’s ahead for the midstream sector — and, more important from an investor’s standpoint, for the individual companies within it. The last few years have driven home the point that while all midstreamers are impacted to some degree by what happens on a macro-level, the relative success of each company is tied to the myriad decisions its leaders make over time regarding which basins and hubs to focus on and which assets to build, expand, acquire or divest. Assessing these micro-level assets and the contributions they each make to a company’s bottom line requires particularly deep analysis. Today, we discuss key themes and findings from East Daley Capital’s newly issued 2020 Midstream Guidance Outlook.