Typically, we have to wait for spring to get in the mode for renewed faith, but as the new year begins there is already reason for optimism for midstream companies and investors.

It’s hard to read the tea leaves when it comes to energy markets. On the one hand, many midstream companies experienced production and earnings growth throughout 2018. On the other hand, the overall market sentiment for commodities like crude oil, natural gas and NGL was bearish as 2018 ended. However, the fundamentals for the midstream remain strong.

Indeed, East Daley Capital’s “2019 Midstream Guidance Outlook” is taking a bullish stance on the sector. “Production growth is likely the biggest factor to influence midstream performance in 2019,” the report said while noting that domestic liquids production rose by 13% and domestic natural gas production rose by 15% in 2018 compared to 2017 figures.

To read the full story