MPLX - Upside In A Down Market: Northeast Gas Dynamics To Advantage Regional Midstream Companies

For investors familiar with the oil and gas sector, it seems logical that a shift in drilling for oil reduces natural gas supply as well. However, getting comfortable with the rest of the logic around demand shifts, balancing wet basin losses with dry basin increases and ultimately delineating impact to midstream companies makes quantifying the impact much harder. When we crunch the numbers through our commodity models and company financial models, the story that plays out is that the drop in oil production creates a shift to an undersupplied gas market that will cause the

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