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
Belcher: Election Year LNG ‘Pause’ Will Have Huge Negative Impacts
2024-03-01 - The Biden administration’s decision to pause permitting of LNG projects has damaged the U.S.’ reputation in ways impossible to calculate.
US Eases Tailpipe Rules, Slows EV Transition Through 2030
2024-03-20 - The Biden administration is unveiling final rules on March 20 that make it easier for automakers to continue selling gas-powered models and slows the projected transition to electric vehicles through 2030.
Exclusive: ‘Reality Has Hit,’ NatGas Not Just a Bridge Fuel, Landrieu Says
2024-04-11 - The Biden administration's LNG pause is "disappointing" and natural gas is a "solution to energy woes," co-chairs for Natural Allies for a Clean Energy Future Senator Mary Landrieu and Congressman Kendrick Meek told Hart Energy's Jordan Blum at CERAWeek by S&P Global.