The outlook for the global midstream energy sector has dipped from stable to negative for the first time, according to a new report from Moody's Investors Service.
Moody’s found that while structural attributes lend stability to the sector, the broader energy industry is grappling with simultaneous demand and supply shocks, with negative consequences to throughput volumes and commodity prices that the midstream sector has been unable to fully offset.
Another concern is the deteriorating credit quality of much of the midstream energy sector’s customer base, which consists of oil and gas exploration and production companies.
"The negative outlook for the global midstream sector reflects the rapid pace and magnitude of production declines that have now spilled into midstream operations and will compromise the sector's
