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
Spate of New Contracts Boosts TechnipFMC's Subsea Profits
2024-04-30 - TechnipFMC's operational profits are growing as the company heightened its focus on “quality” subsea orders, which earned $2.4 billion for the first quarter.
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.
Exclusive: Silixa’s Distributed Fiber Optics Solutions for E&Ps
2024-03-19 - Todd Chuckry, business development manager for Silixa, highlights the company's DScover and Carina platforms to help oil and gas operators fully understand their fiber optics treatments from start to finish in this Hart Energy Exclusive.
CERAWeek: AI, Energy Industry Meet at Scary but Exciting Crossroads
2024-03-19 - From optimizing assets to enabling interoperability, digital technology works best through collaboration.
Cyber-informed Engineering Can Fortify OT Security
2024-03-12 - Ransomware is still a top threat in cybersecurity even as hacktivist attacks trend up, and the oil and gas sector must address both to maintain operational security.