Kevin Gallagher, CFA, Midstream Specialist Provides Sector Update

By BP Capital Investment Team - February 17, 2021

BP Capital Fund Advisors Midstream Specialist Kevin Gallagher, CFA discussed recent developments in the sector along with the case for further upside potential in 2021.

Key highlights from the sector update include: 

  • We continue to believe there is still solid upside return potential in the group despite the recent run as the equities aren’t even back to the summer highs, when conditions were less favorable than they are now. We also see room for multiple expansion.
  • The recent winter blast underscores just how critical traditional energy and midstream infrastructure are, especially natural gas used for power generation and the pipelines that transport it.
  • A common theme for investors continues to be the search for yield, and the Midstream group still has an outsized equity yield. We view these equity yields as sustainable and supported by increasing levels of Cash Flow.
  • While the new Biden Administration has been topical, investors seem to be getting more comfortable with the new administration and what government can actually achieve. 
  • Takeaways from recent midstream earnings results and management commentary. 
  • Bullish setup for the remainder of 2021.
BP Capital Midstream Update-02-2021

To view the BP Midstream Strategy Presentation, please click on the link below:

Midstream Presentation

 

Contacts: Toby Loftin tloftin@bpcfunds.com 214.405.8278 (m) 

Disclaimer:

The information provided does not constitute investment advice and is not an offering of or a solicitation to buy or sell any security, product, service or fund, including any fund that may be advertised.

All information provided herein is for informational purposes only and should not be relied upon to make an investment decision.

Any charts, tables, and graphs contained in this document are not intended to be used to assist the reader in determining which securities to buy or sell or when to buy or sell securities.  Any projections or other information in this blog post regarding the likelihood of various future outcomes are hypothetical in nature and do not guarantee any particular future results.  Additional information is available upon request.  Unless otherwise noted, the source of information for any charts, graphs, and other materials contained here is BPCFA.

This document may contain forward-looking statements and projections that are based on our current beliefs and assumptions and on information currently available that we believe to be reasonable; however, such statements necessarily involve risks, uncertainties and assumptions, and prospective investors may not put undue reliance on any of these statements.

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