East Daley: Opportunities Abound for Midstream Investors in 2018

New report indicates that impending 2018 midstream financial guidance
announcements could deviate significantly from market expectations,
creating uncertainty and surprises related to midstream assets.

CENTENNIAL, Colo.–(BUSINESS WIRE)–East
Daley Capital Advisors, Inc., an energy assets research and data
firm redefining how markets view risk in midstream and exploration and
production (E&P) companies, released a new report identifying key
factors that are poised to give a much-needed boost to the U.S. oil and
gas midstream sector in 2018. The newly released report, “2018 Guidance
Outlook: Opportunities Abound for Midstream Investors,” shows how East
Daley’s 2018 overall adjusted-EBITDA forecasts skew positive versus
current market consensus, indicating midstream sentiment may be too
pessimistic. The new report identifies three key themes that will
dominate the midstream sector in 2018.

“The midstream sector is at an inflection point as market sentiment has
deviated from market fundamentals,” said Justin Carlson, VP and Managing
Director, Research at East Daley Capital. “Even though many midstream
companies have taken a beating in 2017, East Daley’s data and models
show 2018 could be very positive for many well-positioned companies.”

The report says three themes will exist in 2018 that will impact the
midstream sector. First, the market is being overly pessimistic on
midstream companies as East Daley’s adjusted-EBITDA forecasts are skewed
positive versus consensus estimates. Second, rising oil and gas
production in 2018, despite lagging in 2017, will provide an earnings
boost to midstream companies in most major U.S. basins. And third, some
midstream companies, however, will be impacted negatively by large
amounts of long-haul natural gas pipeline capacity contracts that will
either be terminated or renewed at a lower-rate, putting downward
pressure on earnings in some cases.

“It’s a really great time to assess opportunities in the U.S. midstream
sector. It only makes sense that more investors will take a hard look at
this distressed space,” said Carlson. “We are already seeing increased
interest in this sector and we only expect that to continue into 2018.
Not all midstream companies are equal, however, our analysis indicates
there are many midstream companies with healthy assets that will
generate cash-flow growth in 2018.”

Key findings from the 2018 Guidance Outlook:

• East Daley’s analysis indicates that impending 2018 midstream
  financial guidance announcements could deviate significantly from
  market expectations
• East Daley’s 2018 overall adjusted-EBITDA forecasts skew positive vs.
  current market consensus, indicating midstream sentiment may be too
  pessimistic
• Pessimistic midstream sentiment, higher production growth, and natural
  gas contract risk are three major themes that will drive the midstream
  sector in 2018

To access a complimentary copy of East Daley’s 2018 Guidance Outlook go
to http://eastdaley.com/2018-midstream-guidance/
or email [email protected].

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 with deeper, more accurate data to inform
their investment 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 discounted 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
[email protected]