The first quarter of 2019 turned out to be a surprise party of sorts for several MLPs. Plains All American, DCP Midstream, and EnLink Midstream all exceeded first quarter earnings expectations as their plans paid off early. Plains All American is now forecasting full-year earnings to be $100 million higher to about $2.85 billion. Meanwhile, EnLink’s Permian segment grew by 100% year over year in the first quarter.
A recent report from Raymond James says the inflection point for the midstream sector is near. After a big gain of about 12% in January, midstream equities slowed down with the Alerian MLP index now up nearly 16% year to date. Raymond James’ research indicates that public equities are trading at a discount and M&A will increase. Perhaps more important, the analysts think that for more funds to flow into the midstream space and bolster equities there needs to be a further evolution of the midstream financial model, including -- “growth for growth’s sake.”
Speaking of growth, Altus Midstream -- a midstream C-corp formed by Apache and Kayne Anderson last year -- acquired a stake in the Permian highway pipeline. Altus said it exercised and closed its option to acquire a 26.7% equity interest for about $161 million.
Look for coverage in the coming days on HartEnergy.com as we bring you the stories and highlights from Midstream Texas in Midland.
Recommended Reading
Talos Energy Expands Leadership Team After $1.29B QuarterNorth Deal
2024-04-25 - Talos Energy President and CEO Tim Duncan said the company has expanded its leadership team as the company integrates its QuarterNorth Energy acquisition.
Energy Transfer Ups Quarterly Cash Distribution
2024-04-25 - Energy Transfer will increase its dividend by about 3%.
ProPetro Ups Share Repurchases by $100MM
2024-04-25 - ProPetro Holding Corp. is increasing its share repurchase program to a total of $200 million of common shares.
Baker Hughes Hikes Quarterly Dividend
2024-04-25 - Baker Hughes Co. increased its quarterly dividend by 11% year-over-year.
Weatherford M&A Efforts Focused on Integration, Not Scale
2024-04-25 - Services company Weatherford International executives are focused on making deals that, regardless of size or scale, can be integrated into the business, President and CEO Girish Saligram said.