DCP - Midstream Sector Undergoes Shift: Do You Own The Right Companies?
The outlook for the midstream industry looks bright. Nearly everywhere, oil and gas volume increases are improving pipeline throughput - almost too much. For the majority of the North American basins, takeaway capacity is now tight. That means higher operating leverage and a continued need for infrastructure investment - both factors that should be clear positives for the industry. However, the entire sector continues to trade at a discount to recent historical averages despite a stellar stock market. What's the deal?
By any measure, midstreams are cheaper today than they have been over the past