Despite an uptick late in the year, mid­stream oil and gas stocks endured a rough 2019 on Wall Street. The sector outperformed the E&P and oilfield service seg­ments but was subdued by a general sense of investor disappointment with energy.

“I think that had a lot to do with the mid­stream sector spending too much money and frustration with that and people wanting them to dial things back,” said Pearce W. Hammond, managing director for midstream and infra­structure equity research at Simmons Energy in Houston.

This year should be better for the sector, Hammond said, because many in the mid­stream have listened and responded. Four com­panies in particular, selected by Hammond and Kyle May, equity research analyst for Capital One Securities, are primed for strong uplifts in part because of their approach to generating free cash flow.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access