Publications

- October 1, 2021: Vol. 14, Number 9

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Tailwinds and supportive policy reassure midstream outlook

by Mauricio Samaniego

This is an excerpt from an article first published at the Alerian website. The full report is available at the following link: https://insights.alerian.com/tailwinds-and-supportive-policy-reassure-midstream-outlook.

Led by G&Ps [gatherers and processors] and natural gas pipeline operators, midstream names delivered strong second quarter 2021 results that largely beat expectations and led to improving outlooks in 2021 and 2022.

Strong free cash flows drove higher buyback activity, for a combined $302 million spent on repurchases in second quarter 2021. Buybacks are likely to remain a potential tailwind, given continued excess cash-flow generation in second half 2021.

On the ESG front, the outlook is shaping more and more favorably as midstream names continue to evaluate and set forth clean-energy initiatives, while efforts around carbon capture and hydrogen could potentially accelerate amid recent legislative developments that will fare well for mids

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