East Daley Capital Advisors Inc.
East Daley Capital is an energy assets data and 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.
East Daley’s has the largest asset database of U.S. energy infrastructure and patent-pending production allocation model, which provide unprecedented clarity into the U.S. oil and gas midstream sector. This database 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 2019 and beyond.
Editor's note: Updated July 1, 2019.
A global LNG supply gap will begin to open up in the 2030s, according to a McKinsey & Co. analysis but the U.S. might lose its competitive edge if red tape, particularly around pipeline permitting, isn't addressed.
Politics, litigation and regulation all complicate the permitting of pipelines, analysts say.
As public E&Ps hold fast with capital discipline, even exuberant prices might not be enough to substantially bump up production, although private operators remain a wild card, analysts said.
Despite public opposition from some investors, Magellan Midstream Partners shareholders OK’d a $18.8 billion merger with midstream player ONEOK Inc., but analysts and investors still have questions about the deal.
In theory, Equitrans Midstream’s Mountain Valley Pipeline has the potential to open new markets for Marcellus and Utica shale producers but downstream constraints may mean it runs below half of its 2 Bcf/d, at least initially.
Canada’s TC Energy is seen to have sold equity in the premium asset to offset $60 billion in debt, leading to a slide in stock prices.
"We’re going to go through a period here where production is going to be a little bit constrained," Williams' Alan Armstrong said.
Until a slew of LNG export terminals come online, gas production will be high and prices will be low, East Daley says in its annual report.
While East Daley Analytics sees a growth story ahead for midstream, the market seems to lack conviction. Here’s why.
Speaking at Hart Energy’s America’s Natural Gas Conference, East Daley analyst Zach Van Everen predicts gas markets will be oversupplied in the short term but believes exports will eventually drive production for decades.
East Daley Analytics' Zack Van Everen discusses LNG and natural gas expansion potential with King Operating's Jay Young.
East Daley Analytics' new name and brand relaunch will help customers associate the company with the data analysis and advisory services it provides.
Analysts predict that operators could reach pre-pandemic crude oil production outputs by October 2022, with Permian Basin production expected to rise 5.7 MMbbl/d next year.
Analysts said the industry must drill new wells going forward because the number of DUCs available was dropping fast. That drilling increase was likely already coming, at least in the nation’s biggest oil shale basin, the Permian Basin.
The second part of East Daley’s Dirty Little Secrets focuses on financials, and how 24 of the largest midstream companies will manage the generation of capital.