- Midstream companies were devastated by the events of 2020, although their cash flows held up reasonably well.
- The inherent stability is due to their business model that is based around long-term fee-based contracts that are dependent on volumes and not resource prices.
- The long-term fundamentals of these companies are solid due to growth in emerging markets and efforts to fight climate change.
- The fund appears to have been distributing too much in the past, but hopefully, the lower distribution and the industry rebound can fix that.
- The price is very attractive at the present level, and we still get an 8.90% yield.
For further details see:
FEI: A Solid Midstream Fund Coming Off Of A Bad Year