Midstream Earnings: Strong Quarterly Results with Promising Outlook

Companies have dedicated themselves to free cash flow and capital discipline, and investors approve.

The midstream sector enjoyed a strong second quarter and positive outlooks are numerous. (Source: Hart Energy; andrea crisante, Oaklizm/Shutterstock.com)

The midstream sector enjoyed a strong second quarter and positive outlooks are numerous. (Source: Hart Energy; andrea crisante, Oaklizm/Shutterstock.com)

The midstream sector enjoyed a strong second quarter and positive outlooks are numerous, reported Alerian, which likes MLPs.

“As midstream earnings season comes to a close, solid results across the board—characterized by robust free cash flow generation, disciplined capital spending and a continued focus on financial flexibility—add confidence to the reliability of midstream income,” Alerian’s Mauricio Samaniego wrote in an Aug. 10 report. “The outlook remains steady and largely constructive in the short-term, with some midstream management teams citing expectations for the energy environment to strengthen further in 2H21 and into 2022.”

The longer-term outlook is shaping up favorably, Samaniego continued, as more midstream companies incorporate clean-energy strategies or move forward on existing energy transition investments.

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Joseph Markman

Joseph Markman, senior editor for Hart Energy, covers markets and provides data analysis for all Hart Energy editorial products.