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East Daley Capital Annual Report Uncovers 2021 Midstream Opportunities and Risks

2021 Dirty Little Secrets – Fight or Flight: Taking Stock of the Midstream Available Now

Centennial, CO, February 2, 2021

East Daley Capital Advisors, Inc., the midstream expert, today announced the availability of its 2021 Dirty Little Secrets – Fight or Flight: Taking Stock of the Midstream report which identifies the opportunities and risks affecting the midstream sector by bringing together commodity fundamentals with asset-level financial impact. It also includes a detailed breakout of the top 26 midstream companies in the sector.

“Despite the challenges and volatility of 2020, the sector has some genuine opportunities ahead,” said Justin Carlson, Co-Founder and Chief Strategy Officer at East Daley Capital. “Our new report digs deep into the trenches and evaluates factors affecting the midstream industry to separate what’s important from what’s not. Dirty Little Secrets gives readers proprietary intelligence to help them decide when to fight and when to fly.”

Key takeaways from the report include:

  • The collapse in capital spending nets positively for cash flow of over $145 billion for the top 10 North American midstream companies and partnerships in the next four years. Aggregate midstream free cash flow will gain momentum as an expectation rather than an exception.
  • Oil and refined products demand destruction from the pandemic has stifled associated gas growth, leaving the market reliant on gas basin supply increases to meet growing U.S. natural gas demand. East Texas and North Louisiana will benefit from rising U.S. natural gas demand because of the region’s strong well results, geographic location, and ability to build low-cost takeaway.
  • Future energy supplies and the viability of many midstream projects hinge on the Permian Basin, the only major basin from which East Daley expects crude oil production will grow in a $40/bbl – $50 oil price range.
  • Companies will focus on climbing back to their previous peaks rather than growth over the next few years, as stunted production growth will force companies to fight for every barrel and cubic foot of natural gas they send through their pipelines.
  • The Biden presidency presents risks for energy and the midstream sector: more oversight, new climate regulations, slower permitting, and new hurdles for certain pipe projects. However, restricted supply should help rebuild pricing and margins.

To purchase a copy of 2021 Dirty Little Secrets – Fight or Flight: Taking Stock of the Midstream report, visit http://eastdaley.com/2021-dirty-little-secrets.