PXE - Midstream's 2020 Resolutions: Less Spending With A View Toward Free Cash Flow
With growth capital spending likely having peaked, midstream is flipping the page from rapid growth towards a mode of cash-flow harvesting and more measured growth. The benefit of lower spending and the cash flows coming from recently completed projects is greater free cash flow. Investors could benefit from this dynamic in the shape of additional returns of capital and stronger balance sheets. Today, we will examine declining growth capital budgets for midstream companies and discuss the benefits of potential free cash flow generation.
Midstream is reining in capital spending.
During the last decade, energy infrastructure