Sunday, February 5, 2023
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA
Oil Market News Today
Advertisement
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
Oil Market News Today
No Result
View All Result
Home oil & gas

Midstream Oil And Gas Companies Adapt To COVID-19

June 14, 2020
in oil & gas
Midstream Oil And Gas Companies Adapt To COVID-19
Share on FacebookShare on Twitter


Pipeline Fight Texas

Pipes for a proposed new natural gas pipeline are staged near Blanco, Texas Friday, Aug. 2, 2019. … [+] The proposed pipeline is a 430-mile, $2 billion natural gas expressway that pipeline giant Kinder Morgan has mapped from the booming West Texas oil patch to Houston. (AP Photo/Eric Gay)


ASSOCIATED PRESS

Since the March lows, the midstream sector of the oil and gas industry has recovered most of its losses. While the overall sector is still down for the year, the 19.5% year-to-date loss in the Alerian Midstream Energy Select Index (AMEI) is still better than all other major energy sector benchmarks.  

Latest Oil MArket NewsPosts

UK: Oil and Gas Production Efficiency Hits 80% Three Years ahead of Target

Alberta overhauls system to clean up old oil and gas wells, with 90,000

Alberta overhauls system to clean up old oil and gas wells, with 90,000

The latest research note from independent energy infrastructure and master limited partnership (MLP) market intelligence data provider Alerian discusses this year’s roller coaster in the midstream sector. The report notes that from December 31 to the low on March 18, the Alerian MLP Infrastructure Index (AMZI) decreased 67.4%, slightly more than the 66.6% decline in the price of West Texas Intermediate (WTI).

Since March, several factors have helped drive the midstream recovery. The rebound in oil prices, aided by OPEC’s agreement to substantially curb oil output and then to extended those cuts was probably the most significant factor.

But Alerian also identified “constructive company updates before and during 1Q20 earnings season and resilient distributions from larger names” as having likely supported performance. The federal funds rate cut to zero in March was also identified as a potential factor driving investors to seek higher income from the midstream sector.

To position themselves to weather the potentially choppy waters ahead, more than half of the MLPs in the AMZI have cut distributions. This has boosted the coverage ratio of the index constituents from an average of 1.5x in Q4 2019 to 2.6X in Q1 2020.

Coverage for AMZI constituents increased in Q1 2020 as distributions were cut.

AMZI Coverage Q1 2020


Alerian.

Thus far major MLPs like Enterprise Products Partners

EPD
, Energy Transfer LP, Magellan Midstream, and MPLX LP have avoided announcing distribution cuts, but the coverage ratio for all of these names has decreased over the past year.

If the coverage ratios continue to decline, expect to see more distribution cuts, especially for those names where leverage is increasing.

Leverage is ticking up across the midstream sector.

Leverage in midstream names


Alerian

Magellan Midstream and Energy Transfer are among those bucking the trend of increasing leverage, and hence may find themselves better able to withstand the pressure to cut distributions.

As noted previously, many midstream companies will first try to cope with falling revenues by cutting capital expenditures. Alerian writes that “the average percent reduction in 2020 spending from each MLP’s initial guidance to current guidance is -24.1%, while the constituents of the AMEI expect to reduce spending by an additional -22.5% over initial guidance for this year.”

This quarter’s financial results will likely be the worst in memory, but investors seem to…



Read More: Midstream Oil And Gas Companies Adapt To COVID-19

Tags: AdaptalerianCompaniesCOVID19Gasmaster limited partnershipmidstreamMLPoilpipelines

Related Posts

UK: Oil and Gas Production Efficiency Hits 80% Three Years ahead of Target
oil & gas

UK: Oil and Gas Production Efficiency Hits 80% Three Years ahead of Target

by Oil Market
July 31, 2020
0

Production efficiency on the UK Continental Shelf (UKCS) has improved for the seventh consecutive year and for 2019 reached...

Read more
Alberta overhauls system to clean up old oil and gas wells, with 90,000
oil & gas

Alberta overhauls system to clean up old oil and gas wells, with 90,000

by Oil Market
July 30, 2020
0

The Alberta government is revamping how it regulates oil and gas producers in an attempt to start addressing the...

Read more
Alberta overhauls system to clean up old oil and gas wells, with 90,000
oil & gas

Alberta overhauls system to clean up old oil and gas wells, with 90,000

by Oil Market
July 30, 2020
0

The Alberta government is revamping how it regulates oil and gas producers in an attempt to start addressing the...

Read more
UK Government ‘looking at’ oil and gas sector deal, Michael Gove says –
oil & gas

UK Government ‘looking at’ oil and gas sector deal, Michael Gove says –

by Oil Market
July 29, 2020
0

Michael Gove has reiterated the UK Government’s consideration of a north-east oil and gas sector deal and confirmed he...

Read more
Environmental law group seeks to stop Alberta inquiry into oil and gas
oil & gas

Environmental law group seeks to stop Alberta inquiry into oil and gas

by Oil Market
July 28, 2020
0

EDMONTON -- An environmental law group wants a court to suspend the Alberta government's inquiry into oil and gas...

Read more
Colorado scales back proposed fee hike on oil, gas industry after estimates
oil & gas

Colorado scales back proposed fee hike on oil, gas industry after estimates

by Oil Market
July 28, 2020
0

The Colorado Oil and Gas Conservation Commission is scaling back a proposed mill levy increase on oil and gas...

Read more
Next Post
Europe reopens many borders but not to Americans, Asians – Casper, WY Oil

Europe reopens many borders but not to Americans, Asians - Casper, WY Oil

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Today Oil Markets

Natural Gas Price Forecast – Natural Gas Markets Find Massive Support

Natural Gas Price Forecast – Natural Gas Markets Find Massive Support

3 years ago
Chesapeake Energy, a Fracking Pioneer, Is Reeling

Chesapeake Energy, a Fracking Pioneer, Is Reeling

3 years ago
Norway oil firms plan major new offshore field development

Norway oil firms plan major new offshore field development

3 years ago

Russian mining firm accused of using global heating to avoid blame for oil

3 years ago
OPEC+ News Is Holding Oil Prices Back | OilPrice.com

OPEC+ News Is Holding Oil Prices Back | OilPrice.com

3 years ago
Cannabis oil must be made easily available on NHS to help children with

Cannabis oil must be made easily available on NHS to help children with

3 years ago

Oil Market

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Construction of Dangote oil refinery Africa’s largest nears completion

Construction of Dangote oil refinery Africa’s largest nears completion

July 31, 2020

Russia Oil Market

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

July 29, 2020
Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

July 28, 2020

Europe Oil Market

Oil rises further from 3-week lows, but headwinds loom amid pandemic

Oil rises further from 3-week lows, but headwinds loom amid pandemic

July 31, 2020
Shell posts $18billion loss in second quarter – News for the Oil and Gas

Shell posts $18billion loss in second quarter – News for the Oil and Gas

July 30, 2020
Path to net zero: European oil majors outpace US companies on climate goals

Path to net zero: European oil majors outpace US companies on climate goals

July 29, 2020
Oil price holds near four-month high amid bearish signals – News for the

Oil price holds near four-month high amid bearish signals – News for the

July 28, 2020
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 MarketFor Oil.com

No Result
View All Result
  • Home
  • Market
    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas

© 2020 MarketFor Oil.com