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.
The change to Battalion Oil reflects the Permian Basin company’s new team, culture and strategy after roughly a year of upheaval including the exit of its founder, Floyd Wilson.
Oil and Gas Investor and Hart Energy proudly announce the “25 Influential Women in Energy” honorees for 2020. These distinguished women and their accomplishments will be celebrated at the third annual Women in Energy luncheon on March 4, 2020, at the Hilton Americas in downtown Houston.
The merger agreement follows remarks made by Era Group CEO Chris Bradshaw in a letter to shareholders last year that the offshore helicopter industry was in “dire need” of consolidation.