Although the near-term outlook for midstream MLPs includes a number of risks that could lead to further downside for the group, we remain bullish on the longer-term growth prospects for US oil and gas production.
The next one to two years could be challenging for throughput volumes on midstream infrastructure, as exploration and production companies jockey for market share and competitive forces squeeze out the excesses of recent years.
But over the long term, reductions in non-OPEC drilling activity and reduced capital expenditures in international markets create an opportunity for short-cycle shale plays to fill the gap and win market share.
For now, investors should focus on the highest-quality names, especially those with reliable cash flow, low costs of capital and extensive asset bases that will create huge competitive advantages over the long term.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Nov. 26, 2019
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.