ET - Midstream/MLPs: Well-Positioned For Inflation

• While the Delta variant has stalled the global reopening, expectations for rising inflation remain intact.
• Contract service agreements with inflation protection allow midstream names to pass through the effects of inflation, which could potentially lead to higher incremental EBITDA as cost reductions and asset optimization remain a focus.
• Midstream offers exposure to real assets, which tend to outperform during inflationary periods, while also providing attractive yields in a market where inflation is sending real asset yields into negative territory.

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