CENTENNIAL, Colo.--(BUSINESS WIRE)--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 firstname.lastname@example.org.
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.