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New East Daley Capital Report Reveals the Biggest Trends Impacting the Midstream Energy Sector in 2020
[February 04, 2020]

New East Daley Capital Report Reveals the Biggest Trends Impacting the Midstream Energy Sector in 2020


East Daley Capital Advisors, Inc., an energy data and insights provider, announced that it has released its fourth annual report on the midstream energy sector - 2020 Dirty Little Secrets - Molecules to Money: Asset-Level ROCE. This in-depth market report brings together commodity fundamentals with asset-level financial impact to identify midstream energy growth opportunities and risk. East Daley's independent market insights provide both data and answers about the NG, NGL and Crude supply/demand fundamentals that drive the asset-level cash flows of a company.

The report features a new section on Midstream Corporate Strategy that includes data and analysis tailored to midstream corporate companies based on relevant topics faced by management teams within the sector.

Midstream energy executives can leverage this actionable intelligence to better inform their investment decisions. Key findings include:

  • The U.S. midstream infrastructure is at the crest of the largest buildout cycle in history, yet the market is underestimating the overall production growth.
  • Midstream companies providing G&P, NGL transportation, and fractionation in associated gas basins like the Permian and Bakken will enjoy EBITDA growth in 2020 that outpaces production growth and market expectations.
  • Investors are overestimating the near-term value of owning Permian long-haul pipelines given the impending overbuild of crude oil pipeline capacity out of the Permian and Cushing that will negatively impact market earnings.
  • Regulatory risks are on the rise for the oil and gas industry as local, state, and federal governments begin implementing policies to minimize adverse effects from drilling. Howver, this risk is overstated as most oil and gas activity takes place in counties that are favorable towards oil and gas development.
  • Vertical integration is an expensive proposition but is also a key to success. Vertically integrated companies tend to be valued at a higher EV/EBITDA rate making this a key differentiator.



"The market is overwhelmed by sentiment and many investors mistrust the industry and don't have the right data to lean on," said Justin Carlson, Chief Strategy Officer and Co-Founder at East Daley Capital. "Our 2020 Dirty Little Secrets report provides access to an unbiased and independent account of the factors that are driving profitability, as well as visibility into the risk factors in both commodity and finance to stay ahead of the market and give power back to investors."

East Daley cuts through the noise of market sentiment using fundamentals to find opportunity in a sector that has faced notable market headwinds despite continued growth in earnings. East Daley goes beyond simply delivering data, and instead takes a deeper look at the NG, NGL and Crude supply/demand fundamentals. This granular approach reveals the bigger picture implications of commodity price movements and delivers actionable intelligence.


To purchase a copy of 2020 Dirty Little Secrets - Molecules to Money: Asset-Level ROCE report, visit http://eastdaley.com/dirty-little-secrets/.

About East Daley Capital Advisors, Inc.

East Daley Capital is an energy data and insights provider that is redefining how markets view risk for midstream and exploration and production (E&P) companies. In addition to using top-level financial data to predict a company's performance, East Daley delivers asset and commodity analysis that provides comprehensive, fact-based intelligence. Supported by a team of unbiased, experienced financial and commodity analysts, East Daley provides its clients unparalleled insight into how midstream and E&P companies operate and generate cash flow, in addition to commodity forecasting. East Daley uses publicly available fundamental data and intersects that data with a company's reported financials to asset-level adjusted-EBITDA and distributable cash flow (DCF). The result allows for more informed investment decisions. Founded in 2014, the company is based in Centennial, Colorado. For more information visit http://www.eastdaley.com.


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