Thus far in 2020, the equity price performance and elevated yields for midstream and MLPs paint a different picture than what may be drawn from fundamentals. Yields remain high, yet 2Q payouts were steady. Equity prices are well below levels from early January, but forward earnings estimates have only seen modest revisions. Midstream has the potential to generate significant free cash flow, yet it feels underappreciated. Watch our brief summer recap video for an update on the space and a discussion of potential catalysts.
With the collapse in oil prices sending shockwaves through the energy sector in March and April, midstream has stood out for its relative resilience. Watch our three-minute update video for a discussion of some of the key factors driving defensive midstream performance, including more stable cash flows. The relative stability of the midstream business model has allowed many companies to maintain attractive payouts, as the space continues to offer investors healthy income in addition to diversification and real asset exposure.
How will midstream fare in the new decade? Watch our three-minute 2020 Midstream Outlook video for a recap of 2019 and a look ahead to some key trends for this year, including growing energy production and exports, free cash flow generation, and potential catalysts.
With the dog days of summer coming to a close, what should midstream and MLP investors know before we head into the fall? Watch this short video for a recap of 2Q19 results, recent M&A activity, company-level improvements, and potential catalysts for the rest of the year.
In this mid-year video update, we recap midstream’s strong start to 2019 and discuss what may be in store for this summer. Before you head out for vacation, watch this short video (only 3 minutes!) for a recap of 1Q19 results, private equity’s involvement in the space, midstream valuations, and potential performance drivers for the coming months. Related links: BPL: What does Buckeye’s Buyout Mean for MLPs and Midstream? Private Equity Continues to Bet Big on Midstream 1Q19 MLP Distribution Recap: Outlook Improving in Spite of Cuts
Related links: Bye, Bye, Bye (MLPs) Revisited: MLP Consolidation Entering Late Innings MLPs and Midstream: Defense Wins in a Tough Oil Tape