Midstream Energy Outlook

Upstream companies’ capital spending restraint has increased commodity prices while curbing midstream volumes. Midstream growth won’t improve materially. Industry consolidation will continue.

  • E&P capex discipline will keep higher volume expectations at bay in the near-term, hindering organic growth
  • Improved natural gas and liquids prices reduce volumetric risks
  • 2022 midstream growth capex will continue declining, limiting future EBITDA growth
  • M&A activity should pick up, focusing on operational synergies
  • Share buybacks and modest distribution increases are likely with improved free cash flow
  • Speakers keyboard_arrow_down
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    Steve Wood Managing Director, Corporate Finance Moody's Investors Service Bio
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    Sajjad Alam Vice President - Senior Analyst, Corporate Finance Moody's Investors Service Bio
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    Arvinder Saluja Vice President - Senior Analyst, Corporate Finance Moody's Investors Service Bio
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