RTLR - Tailwinds And Supportive Policy Reassure Midstream Outlook

• Led by G&Ps and natural gas pipeline operators, midstream names delivered strong 2Q21 results that largely beat expectations and led to improving outlooks in 2021 and 2022.
• Strong free cash flows drove higher buyback activity for a combined $302 million spent on repurchases in 2Q21. Buybacks are likely to remain a potential tailwind given continued excess cash flow generation in 2H21.
• On the ESG front, the outlook is shaping more and more favorably as midstream names continue to evaluate and set forth clean energy initiatives, while efforts around carbon capture and hydrogen could potentially accelerate amid recent legislative developments that fare well for midstream and energy broadly.

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