East Daley Capital Releases “Dirty Little Secrets 2018”
This new analytical report indicates that the U.S. oil and gas
midstream sector is on the verge of a banner year in 2018
Dirty Little Secrets – The Naked Truth: Uncovering
Opportunities in the Midstream Sector, is the definitive guide to
uncovering investment opportunities in the U.S. midstream oil and gas
sector. The 165-page report provides the most comprehensive review of
upside and downside risk of 28 prominent midstream companies for 2018
and beyond.
CENTENNIAL, Colo.–(BUSINESS WIRE)–#bakken—East
Daley Capital Advisors, Inc., an energy assets research firm
redefining how markets view risk in midstream energy companies,
announced that “Dirty Little Secrets – The Naked Truth: Uncovering
Opportunities in the Midstream Sector,” is now available for
purchase. The report details the risk for 28 companies in the midstream
sector by subdividing their cash flow at an asset-level providing key
insights and EBITDA forecasts for 2018 and beyond.
“We expect 2018 to be a major rebound year for many companies in the
U.S. midstream sector,” said Justin Carlson, VP and Managing Director,
Research at East Daley Capital. “2017 was a brutal year for equity
valuation in the energy industry which at times seemed to be
indiscriminately beaten up. Our data and analysis show the midstream
sector growing by 15% in cash flow 2018. With domestic U.S. oil and gas
production expected to increase in 2018, and crude prices rebounding,
it’s a great time for investors to look at the midstream sector for new
opportunities.”
However, deciphering between operational and capital structure
challenges will be a key distinction to assessing those opportunities in
2018. Not all investment opportunities are equal and Dirty Little
Secrets quantifies exposure to commodity markets by asset and
provides the basic tools for understanding a company’s most important
risk components. New to Dirty Little Secrets 2018: Distributable
cash flow (DCF), coverage and leverage based on EDC’s EBITDA forecasts
and summary data files for all the companies that show EBITDA per asset,
segment and commodity.
Key findings in the report include:
-
$7.2 billion (15%) in cash-flow growth from midstream companies in
2018 will be transformational for an industry beaten down in 2017. -
17 of 28 companies covered in this report are expected to outperform
market consensus, highlighting East Daley’s positive outlook for
midstream growth. -
Coverage and leverage are key metrics but they can mask insight into
future company performance that is only uncovered from detailed
asset-level analysis, such as the case with BWP and ETP. -
Gas and oil production is expected to surge across the country,
boosting oil output by 1.3 MMB/d and gas extraction by 5.6 Bcf/d
YoY…bolstering earnings across the sector. -
Supply growth has been underappreciated in basins like the Bakken,
Powder River and Marcellus. Growth in those basins is contrary to
market sentiment for rate and volume risk. -
The infrastructure of tomorrow could be in the ground today with old
infrastructure finding new life in the Permian, Bakken and DJ. -
Tax cuts have raised return on equity for natural gas pipelines, oil,
and NGL lines, increasing the risk of significant revenue cuts via
rate cases or rate freezes.
Featured midstream companies: AM, BPL, BWP, CEQP, CNXM, DCP, EEP,
ENBL, ENLK, EPD, EQM, ETP, GEL, KMI, KML, MMP, MPLX, OKE, PAA, RMP,
SEMG, SEP, SXE, TCP, TEP, TRGP, WES and WPZ.
To request the Dirty Little Secrets report, visit http://eastdaley.com/request-dirty-little-secrets/
or email insight@eastdaley.com.
Dirty Little Secrets is used by investors, institutional banks,
fund managers, private equity, midstream companies and E&Ps to
understand how changing energy market dynamics will impact the midstream
sector in 2018 and beyond. This report is made possible by East Daley’s
dedicated team of midstream analysts, leveraging the largest database of
U.S. energy infrastructure that delivers unprecedented clarity into the
vast network of midstream assets.
East Daley’s largest asset database of U.S. energy infrastructure and
patent-pending production allocation model, combined with in-depth
analysis, brings greater transparency to the midstream energy financial
market by providing investors and market participants with deeper, more
accurate data to inform their investment and strategy decisions.
About East Daley Capital Advisors, Inc.
East Daley Capital is an energy assets research firm that is redefining
how markets view risk for midstream and exploration and production (E&P)
companies. In addition to using top-level financial data to predict 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 and E&P companies operate and
generate cash flow. East Daley uses publicly available fundamental data
and intersects that data with a company’s reported financials to
asset-level adjusted-EBITDA and distributable cash flow (DCF). The
result allows for more informed portfolio decisions. Founded in 2014,
the company is based in Centennial, Colorado. For more information visit http://www.eastdaley.com.
Contacts
East Daley Capital
John Lange, 303-499-5940
Vice-President,
Managing Director of Sales and Marketing
jlange@eastdaley.com
