Latest News

Produced Water Volumes Expected to Reach Unprecedented Levels Creating Midstream Infrastructure Opportunities Through 2022


East Daley’s Dirty Little Secrets annual report outlines that $4.1 billion in new infrastructure will be needed to support the 51% water supply growth in the Permian basin alone, providing opportunity for water-focused midstream companies like Crestwood (CEQP), Summit (SMLP), Targa (TRGP), Western Gas (WES) and more.

 

Centennial, CO – February 22, 2019East Daley Capital Advisors, Inc., an energy information and insights provider that is redefining how markets view risk for the midstream and upstream energy sector, released “Dirty Little Secrets – Market Fears Create Historic Opportunity in the Midstream Sector,” late last month. 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 deeper look into new infrastructure opportunities, while long-haul infrastructure CapEx spend is likely to decline, enterprising management teams will use 2019 to position themselves for the next set of growth segments, including water, NGL exports and natural gas exports.

“The growth in produced water volumes will drive the need for significant capital investment to manage water handling and disposal, and if the industry doesn’t respond quickly, it will have serious ramifications on future production,” said Justin Carlson, VP and Managing Director, Research at East Daley Capital. “While the market is well-aware of the coming surge in oil production, it is just now beginning to consider the ramifications of the unprecedented produced water volumes that will come with this growth in oil production.”

Historically, produced water has been handled on an as-needed basis and controlled mostly by producers since disposal wells are presently located near sources of oil and gas production. The 2019 Dirty Little Secrets report digs deeper into the key driving factors behind the increase in volumes as we explore the impact of this major theme and the trickle-down effect to several midstream companies.

Contact East Daley to dive deeper into insights within 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 U.S. crude oil supply projected growth, the record level DUC inventories and efficiencies that will be gained and more.