For the first time in a while, the midstream sector is not anticipating a wave of new projects coming online, East Daley Analytics said in its annual Dirty Little Secrets report that explores midstream’s role in the future of energy.
Ajay Bakshani, capital markets analyst for East Daley and a co-author of the report, said the sector was primed to generate about $90 billion in cash over the next four years, based on research on the 25 companies the firm actively follows. The question for the East Daley team became: with fewer projects, how will that money be used?
“There’s going to be selective new infrastructure that’s needed, especially for gas and NGLs, and in the Permian and ArkLaTex,” Bakshani said. “And while we acknowledge that the energy transition, and especially carbon, is going to be a huge opportunity, there’s really a timing mismatch where large-scale projects are likely not going to be available during this 2021-2025 time frame, where we expect companies to generate over $90 billion in free cash flow. And this is free cash flow after already planned growth projects, planned distribution growth, as well as repurchases.”
An article based on this video interview will appear in the January issue of Oil and Gas Investor magazine.
The complete Dirty Little Secrets report, including coverage of midstream companies, will be available in January. For more information on the report, contact East Daley here.
Jump to a topic:
- Report’s findings (0:54)
- Energy transition (4:22)
- Associated gas production (5:52)
- Tier 2 basins (7:33)
- Mountain Valley Pipeline (10:05)
- Net-zero projects (10:52)
- Hydrogen (13:45)
Recommended Reading
Oil Advocate Kathleen Sgamma Withdraws Nomination to Lead US Land Bureau
2025-04-10 - Oil industry lobbyist Kathleen Sgamma has withdrawn herself from consideration to lead the U.S. Bureau of Land Management.
CEOs: Sub-$60 WTI ‘a Mess’ but Tariffs ‘Had to Happen’
2025-04-09 - Some E&P leaders told Hart Energy the newly low oil prices aren’t good for business, while others said they will be fine in the long run.
Oil Jumps 4% After Trump Pauses Tariffs on Many Countries, Raises China Levy
2025-04-09 - Oil prices bounced back after U.S. President Donald Trump said he would further increase tariffs on China but pause the tariffs he announced last week for most other countries.
Oxy Secures Class VI Permits for Stratos DAC Project
2025-04-07 - Occidental Petroleum has secured permits from the Environmental Protection Agency to store CO2 at its Stratos DAC facility. Located in Texas, Stratos is designed to capture and store up to 500,000 metric tons of CO2 annually, Oxy says.
Chevron Ordered to Pay $744MM for Damages on Louisiana’s Wetlands
2025-04-07 - A jury found oil company Texaco, which is owned by Chevron, violated Louisiana’s coastal resources regulations by dredging canals, drilling wells and dumping wastewater into the marsh.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.