Midstream & Transport Monitor - October 30, 2015

Neither the MLP structure nor the midstream sector itself are broken, a trio of finance experts told a packed house at Hart Energy’s inaugural Midstream Texas conference. Being stuck in a down cycle might make it appear that way, though. “I think some MLPs are broken but I don’t think the MLP space is broken,” said Peter Augustini, partner with Energy Spectrum Capital. “Some of the MLPs were wandering into the area where private equity was more appropriate.” The experts were responding to a question that challenged their relatively bullish outlooks for the sector, given upstream’s commodity price-induced doldrums. They emphasized that the MLP structure and the midstream energy sector were not one and the same, despite conditions that have brought the two together.