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- MARCH 9, 2020

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The changing course of midstream energy: After years of volatility and poor performance, what can midstream energy offer investors today?

by Mard Naman

Midstream energy investments, whether public securities or private markets allocations, have long been sought after by infrastructure investors, but the sector has changed in recent years. Once a reliable go-to investment for stable cashflows and growth, the sector hit a rough patch starting in 2014, when global oil prices tanked. With balance sheet and financing challenges between 2014 and 2018 and ongoing volatility in 2019, can midstream energy again become a sweet spot for investors?

As the name indicates, the midstream sector contains the middle of the oil and gas supply chain — the gathering, transport, storage and processing functions, including assets such as pipelines, rail cars and processing plants. This is compared to the upstream exploration sector — comprised of the drilling and production assets at well heads — and the downstream distribution and sale processes, including refineries and local utilities.

While not immune, midstream energy is general

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