East Daley Analytics – Dissecting the Energy Value Chain
Energy Insights and News

East Daley Capital Launches New Solution to Channel Check Midstream Energy Companies

Comments: 0

Latest News

East Daley Capital Launches New Solution to Channel Check Midstream Energy Companies

Capital Markets Solution Provides Asset-Level Data and Insights on Opportunities and Risks

Centennial, CO, June 16, 2020 – East Daley Capital Advisors, Inc., the premier midstream energy data and insights company, launched its Capital Markets solution comprised of industry-leading financial models and reports that are now paired with its asset-level, data-driven Company Dashboards, Board Reports, Company Blueprints, and Roadmaps that channel check companies in the midstream energy market. Channel checking the midstream sector through East Daley’s Capital Markets solution allows for the most accurate and updated forecasts and helps flag trends as they occur ahead of a company’s quarterly earnings announcements.

The volatility in oil prices paired with the impacts from the COVID-19 pandemic, created a significant amount of uncertainty for energy market demand, supply, and price forecasts. In addition, the timing of bringing production back online is an unknown factor that typically drives short-term volumes and earnings and long-term growth.

The energy market typically trades based on oil prices and company guidance, but both guidance and oil prices have a lot of uncertainty. However, midstream company earnings trend with U.S. hydrocarbon production. This means without more real time data and models that allow sensitivity analysis, investors can be left in the dark in their pricing of midstream equity risk or how to evaluate future cash flows in the midstream sector.

“The midstream sector is much more difficult to evaluate than other more conventional market sectors, and therefore requires an unconventional approach to analyzing equities,” said Justin Carlson, Co-Founder and Chief Strategy Officer at East Daley. “Energy assets will perform differently depending on commodity type, basin location and counterparty exposure. East Daley has already identified the most optimal data sources to properly channel check the midstream market and arms investors with the most accurate insights on an individual company’s opportunity and risk.”

These sources include:

  • Asset-level financial analysis driven by robust in-house commodity expertise.
  • Real-time G&P flow data leveraging natural gas pipeline meter points across North America.
  • An asset database of 1,100+ midstream assets that can be segmented by basin, commodity, and asset type to pinpoint risks and opportunities.
  • Proprietary in-house modeling and data enhancement that identifies counterparty risk, real time rig allocation, individual G&P systems, and sensitivity analysis.

But the biggest wild card centers on associated gas in oily US shale plays, which has flooded the market in recent years only to have volumes plunge as global crude demand and prices tumbled. It’s not clear how long crude prices will stay at levels that discourage associated gas growth, but it is certain that the burning need for MVP’s 2 Bcf/d and ACP’s 1.5 Bcf/d of capacity could hinge on the speed of that recovery (NGW Jun.1’20).

East Daley connects all of these data points together to provide a holistic view on midstream companies. The Capital Markets solution is not available anywhere else in the market and provides an unbiased, third party perspective including regular updates and insights down to the asset-level on company performance.

“It’s a tough environment for supply and demand forecasts and there is uncertainty and exposure in the market,” added Rob Wilson, Executive Director, Capital Markets at East Daley. “We anticipate that the mispricing issue will be more severe in the wake of pandemic-related impacts which is why having access to enhanced data, models and insights is critical to making the most informed and accurate decisions with investment strategies.”

To learn more about this topic, register for East Daley’s webinar “Channel Checking the Midstream” on June 17, 2020 at 12:00 p.m. EDT.

“At some point, you’re not so much concerned about profit as you are about avoided costs, which is why sometimes these things just hang on,” he said.

About the AuthorEast Daley Capital