Midstream assets, specifically pipelines and processing centers, play a crucial role in America's energy future. The industry is growing rapidly and may play a crucial role in the future of your portfolio. There are many companies to keep an eye on, and it's an industry worth watching. Here's a recap of this week's highlights and lowlights.
New kid on the block
EQT Midstream Partners
EQT Midstream's growth will depend in part on its ability to secure customers in the Marcellus. Its parent company accounted for 65% of its volumes in the first quarter, but nepotism will only get you so far. Luckily for EQM, dry gas production in the Northeast is expected to more or less double over the next 20 years.
The company sold 12.5 million common units priced at $21, raising just over $262 million. Shares rose 14% in their first day of trading.
1 out of 3 ain't bad
The southern leg of the Keystone XL will carry crude from Cushing, Okla., to Texas refineries on the Gulf Coast. This section's capacity is 830,000 barrels per day. It will cost $2.3 billion to build and construction is slated to begin this summer, provided TransCanada obtains the other two permits.
Midstream is where it's at, folks. The energy industry will spend an estimated $130 billion to $210 billion expanding natural gas infrastructure over the next 20 years. After all, the more oil and gas that flows through those pipelines and processing centers, the more cash there is to flow into your pockets. Stay on top of all the midstream action by adding the companies above to My Watchlist.