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RBN Energy: Dirty Little Secrets – Midstream Is On the Upswing, But Hidden Risks Remain Below the Surface

Accurately assessing the value of—and prospects for—a midstream energy company requires a deep, detailed analysis that considers the firm’s individual processing plants, pipelines, storage and other assets; asset location and the degree to which the assets complement each other; and the underlying contracts that generate revenue. Do less, and you may be getting a pig in a poke. It’s true, things are definitely looking up in the midstream sector, but that hardly makes every midstream company a winner. Today, we review highlights from a new East Daley Capital report that shines a harsh, bright light on the inner workings of more than 20 U.S. midstream companies.

A house for sale can look move-in-ready from the curb, a year-old SUV can look sparkly and spiffy on a dealer’s lot, and a prospective date on match.com … well, you get the idea. Everyone—including the folks that run midstream companies—tries to put their best foot forward, to highlight their most positive attributes, and to de-emphasize the real turn-offs. Nothing and no one is absolutely perfect—we get that—but surely it makes sense, if you’re evaluating a midstream company’s value and prospects, to gain as full an understanding as you can of what’s not put out there on a pedestal for public view. In a newly issued report, Dirty Little Secrets—Lifting the Covers on Midstream Energy Company Risk, our good friends at East Daley Capital have done a lot of that work for you, taking company-by-company analyses far beyond the general overviews that are typically offered by research firms. (More information on the report, which runs more than 100 pages, is available here.)

To read the entire RBN Energy article, click here.