The Stack bustles as the industry finds some positive, Permian-like qualities to the Midcontinent’s best play. Attractive costs and infrastructure also boost the region’s other unconventional prospects.
When Kinder Morgan Inc. first left the MLP space, it was an anomaly. Now that ONEOK Inc. and Targa Resources Corp. have both also bought in their MLPs, there is validity to the question of whether the MLP model is still relevant.
The money is there for midstream expansion projects, but there are multiple lending and credit issues to consider.
The Midstream Business annual rankings of the sector’s largest natural gas processors and NGL processors for calendar year 2016 were a study in contrasts. In both cases familiar names continued to top the charts.
Energy Transfer Partners’ Rover Pipeline is a prime example of extreme demand escalation. Capex on the project is forecast to reach $4.2 billion.
But looking beyond the maze of trading patterns, the Raymond James analysts see better times ahead—and opportunities to be seized in the wake of the market’s recent mispricing of midstream stocks.