AMUB - Midstream/MLP Perspectives On Keystone XL Federal Lands

• As President Biden took office, the reflation trade that had boosted energy broadly gave way to regulatory concerns, as his administration largely delivered on campaign promises that were well telegraphed in the past.
• Given TC Energy was the sole midstream company with ownership interest and the unique aspects of the pipeline, the cancellation of Keystone XL’s presidential permit has no real readthrough for the rest of midstream and MLPs.
• Even if the pause on new drilling leases for federal lands persists, there should be little medium-term impact to the industry, including midstream companies providing pipeline services for production from federal lands.

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