The midstream sector is in a very different position than it has experienced in the last few years. From targeting megaprojects in 2016-2020, the large midstream companies that drive the business are now focused on managing cash flow.

Part 2 of East Daley Capital’s Dirty Little Secrets report focuses on the financial aspects of the midstream outlook for 2022.

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Video: Midstream Outlook: More Cash, Fewer Projects

Download: Oil and Gas Investor, January 2022, “Midstream Outlook: Fewer Projects, More Cash”

“From 2021 through 2025, we’re now forecasting about $81 billion of free cash flow after distributions that can then be used for debt reduction, share buybacks, acquisitions, energy transition and whatnot,” said Ajay Bakshani, senior capital markets analyst for East Daley Capital.

Now, however, there are not as many projects.

“There’s not a new megaproject that’s going to be built, or multiple megaprojects that are going to be needed every year or so,” he said. “It’s really figuring out what companies can do with that capital and what position it puts them in.”

Jump to a topic

  • Report overview (0:38)
  • More free cash flow (1:45)
  • Megaprojects to come? (3:29)
  • Northeast constraints (4:34)
  • High gas prices (5:50)
  • Making projections (7:17)
  • Base business risk scenario (8:42)
  • Consolidation (11:03)
  • Price forecast (12:10)
  • Tier 2 basins (13:53)

More information on the report can be found here.

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