Pipe Dreams: E&P Money Tree

SPECIAL REPORT from East Daley: Producers to Gain Significant Cash Flow As Pipeline Contracts Expire

During the U.S. natural gas boom of 2007-10, an unprecedented amount of capital went into the development of new pipeline construction. Many E&Ps signed up for 10-to-15-year firm transportation contracts on the new pipelines. Since then, there has been a downward swing in natural gas prices, fundamental shifts in regional gas flows, the emergence of the Marcellus/Utica shales and the decline of legacy plays such as the Barnett and Fayetteville.

Due to the new energy landscape, East Daley believes many of those contracts will not be renewed. The expected contract attrition in the U.S. natural gas market creates both challenges and opportunities. For midstream companies, it could mean cash-flow trouble. For producers, it could mean additional cash flow to invest into other areas of the business.

E&P Money Tree is a special report from East Daley that analyzes the firm transportation contracts of ten of the largest U.S. E&P companies. Using their current and future production profiles, analyzing the market spreads and where the companies are allocating their capex, all of their firm transportation contracts were reviewed and risked. This report shows how producers and midstream companies could be impacted as these contracts begin to roll off in the coming years.

This report is now available for purchase.

East Daley Capital is an energy asset research firm

that is redefining how markets view risk for midstream energy companies. In addition to using top-level financial data to forecast a company’s performance, East Daley delivers asset-level analysis that provides comprehensive, fact-based intelligence. Supported by a team of unbiased, experienced research analysts, East Daley provides its clients unparalleled insight into how midstream companies operate and generate cash flow. East Daley uses publicly available fundamental data and intersects that data with a company’s reported financials to break midstream companies down to asset-level cash flows. The result allows for more informed decisions.