East Daley Capital Advisors, an energy information and insights provider, recently released “Dirty Little Secrets–Market Fears Create Historic Opportunity in the Midstream Sector.”
The 200+-page report details the opportunities and the risks across 27 companies in the midstream sector by subdividing their cash flow at an asset-level, providing key insights and EBITDA forecasts for 2019 and beyond. The 2019 report includes a deeper look into new infrastructure opportunities, while long-haul infrastructure CapEx spend is likely to decline, enterprising management teams will use 2019 to position themselves for the next set of growth segments, including water, NGL exports and natural gas exports.
“The growth in produced water volumes will drive the need for significant capital investment to manage water handling and disposal, and if the industry doesn’t respond quickly, it will have serious ramifications on future production,” said Justin Carlson, vice-president and managing director, research at East Daley Capital. “While the market is well-aware of the coming surge in oil production, it is just now beginning to consider the ramifications of the unprecedented produced water volumes that will come with this growth in oil production.”
Historically, produced water has been handled on an as-needed basis and controlled mostly by producers since disposal wells are presently located near sources of oil and gas production. The 2019 Dirty Little Secrets report digs deeper into the key driving factors behind the increase in volumes as we explore the impact of this major theme and the trickle-down effect to several midstream companies.