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. 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.
Pipe Dreams Parts 1 & 2 is a special report from East Daley that analyzes the firm transportation contracts of many of the largest U.S. E&P and midstream companies. Using their current and future production and transportation 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.
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.