UMI - Why Midstream Investors Should Look Past Oil Volatility

• Despite the significant pullback in oil prices lately and uncertainty posed by the Omicron variant, midstream performance has been largely resilient.
• Multiple factors arguably exacerbated the recent downward move in oil prices, and oil market fundamentals have likely changed less than price action would suggest.
• Even with the recent volatility in oil prices, the outlook for midstream cash flows and volumes remains largely unchanged. Midstream companies are expected to generate significant free cash flow, which will be used for reducing debt and returning cash to shareholders via buybacks and dividends.

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