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Market Fears Create Historic Opportunity for Investors in the Midstream Energy Sector


New analysis from East Daley will be key for investors to accurately identify opportunities and quantify risk as the sector is forecast to grow another $10 billion (20%) in EBITDA over the next four years driven by companies like Energy Transfer (ET), Enterprise (EPD), Williams (WMB) and more.

Centennial, CO – January 16, 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 will release the 150+ page 2019 Dirty Little Secrets annual report next week, which forecasts future growth and identifies key risks for the midstream sector.  Even though many midstream companies are poised for a strong 2019, other companies will struggle to manage legacy asset declines.  Dirty Little Secrets provides insight into the opportunities and risks facing the midstream sector showcasing that even though challenges exist for some midstream companies, East Daley views the sector favorably for oil and gas production and cash flow growth.

“The resiliency and improved efficiencies of the U.S. oil and gas sector has been remarkable the past several years, and even more so now given the current price environment,” said Justin Carlson, VP and Managing Director, Research at East Daley Capital.  “Despite low oil prices, we are forecasting domestic crude supply to increase by 1.0 MMbbl/d in 2019, a growth rate similar to 2014.  Even though crude prices are 50% lower than in 2014, this is a strong indicator that this sector can continue to generate positive cash flow even when prices are weak.”

East Daley’s Dirty Little Secrets report is released on an annual basis and for the third year has been the definitive guide to uncovering investment opportunities and assessing risk in the U.S. midstream oil and gas sector – the executive summary is available now. 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.