- DCP Midstream's NGL and natural gas volumes have held up remarkably well over the past year.
- The lack of new drilling in the US has allowed DCP to shrink their capex budget which in turn allows higher free cash flow and greater debt reduction.
- The energy sector backdrop is extremely favorable for energy companies. Low production levels and higher demand have allowed energy prices to soar creating a goldilocks environment for beleaguered energy companies.
- DCP has equity volumes exposed to the higher prices, which will create higher earnings.
For further details see:
DCP Midstream - Room To Run