- Midstream companies were devastated by the market's reaction to the pandemic, but the fundamentals are still quite strong.
- The fund's portfolio is fairly well diversified among the various midstream companies but I would have liked more exposure to natural gas.
- The global demand for both crude oil and natural gas is expected to increase over the next 20 years, with gas being the better of the two.
- The distribution appears to be sustainable at the level the fund cut too after prices collapsed.
- The fund has an enormous 18% discount to net asset value so the price certainly looks acceptable.
For further details see:
EMO: A Solid Midstream Fund Trading At A Huge Discount