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East Daley’s 2019 Dirty Little Secrets Annual Report Takes a Holistic Approach to Company Analysis by Identifying Where Midstream Growth Opportunities and Risks Exist


East Daley’s just-released, in-depth analysis will provide investors clarity on midstream sector risks utilizing East Daley’s Treadmill Incline Intensity™ (TII) calculation that quantifies legacy asset cash flow decline across 27 midstream companies.

Centennial, CO – January 31, 2019East Daley Capital Advisors, Inc., an energy information and insights provider that is redefining how markets view risk for midstream and exploration and production (E&P) announced that “Dirty Little Secrets – Market Fears Create Historic Opportunity in the Midstream Sector,” is now available. 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 newly developed measure unique to East Daley called the Treadmill Incline Intensity (TII) that figures in risks that eat away at base business cash flows and offset future growth projects including: contract roll-off risks, marketing risks, commodity price declines, tariff rate cases and production.

“Companies with a higher TII face the most risk of generating cash flows shortfalls versus market expectations,” said Justin Carlson, VP and Managing Director, Research at East Daley Capital.  “The higher the TII, the more the risk to future cash flows and thus the more the company should be doing to offset that risk.”

The 2019 report will dig deeper into some of the driving factors behind the declines as we explore the impact of one of the major themes in 2019, demand-constrained growth for natural gas. Oil-driven natural gas supply growth along with surging production in the Northeast is expected to result in a reduced gas price environment that will reduce rigs in Tier III basins.

Contact East Daley to dive deeper into future trends with 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 how produced water could fuel infrastructure, U.S. crude oil supply projected growth, the record level DUC inventories and efficiencies that will be gained and more.