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East Daley’s Fourth Quarter Analysis Reports Upside Earnings’ Deviations Suggesting Opportunity for Midstream Investors in 2019


Despite a mixed market sentiment heading into 4Q2018 earnings’ calls, East Daley forecasts many midstream companies to meet or exceed consensus EBITDA expectations, including Enable Midstream Partners (ENBL), DCP Midstream (DCP), TCP Pipelines (TCP), Tallgrass Energy (TGE) and more.

Centennial, CO – January 23, 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) companies released their Consensus Comparison Report for fourth quarter earnings that highlights East Daley’s views on how company earnings forecasts diverge from market expectations. East Daley’s fourth quarter analysis indicates midstream sector growth to continue in 2019 as 22 of the 27 companies under coverage are expected to meet or exceed EBITDA expectations in Q42018.

“The growth trend we are seeing in Q42018 is expected to continue in 2019,” said Justin Carlson, VP and Managing Director, Research at East Daley Capital.  “The increase in cross-commodity production will have a trickle-down effect resulting in a favorable earnings outlook for many midstream companies.”

The strong quarter is impacting companies like TCP Pipelines (TCP) which is 18% above consensus due to new contracts coming online and the elimination of a contractual revenue sharing agreement, the anticipated growth of Enable Midstream Partners (ENBL) is due to a combination of gathering and processing (G&P) 20% y-o-y cash flow growth, new EGT contracts and increased utilization of Enable Oklahoma Intrastate Transmission (EOIT) and improved gas sales margins. Full details and more information on growth for DCP midstream (DCP) and Tallgrass Energy (TGE) can be found in East Daley’s Consensus Comparison Report. The report is released on a quarterly basis and helps clients identify market opportunities by showing East Daley’s earning expectations versus the street.

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 150+ page report will 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. Additionally, it will include asset-level earnings forecasts, distributable cash flow based on East Daley’s EBITDA forecasts across the 27 companies under coverage.