- Midstream stocks underperformed the broad market for a fourth straight week. Midstream's bounce off the bottom early in the quarter appears to have left positioning largely settled into year-end.
- High quality, demand-pull pipeline and export infrastructure should outperform upstream-oriented names in a sector where money flows into midstream sector funds is challenged, but generalists might find value and opportunity among a few of the higher-quality, scale midstream players.
- Elevated financial leverage, weak corporate governance, excess capacity across most basins, and continued fund flow moves away from energy stocks remain headwinds to midstream performance in 2021.
For further details see:
Another Lost Week, Year For Midstream