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 214.405.8278 (m) 


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