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.
C.W. Resources and CWR retained TenOaks Energy Advisors for the sale of certain operated properties in the Overton Field of East Texas.
Wagner Oil Co. retained RedOaks Energy Advisors as the exclusive adviser in connection with the sale of the Charco Package comprised of certain South Texas and East Texas properties.
Here’s a snapshot of recent energy deals including BP’s $1.1 billion acquisition of U.S. offshore wind assets plus Northern Oil and Gas’ entry into the Permian Basin.