Small- And Mid-Cap Midstream Review

Apr. 26, 2021 6:43 AM ETAM, CEQP, DCP, ET, ENLC, ETRN, NBLX, TRGP, WES56 Comments
Aaron Goldberg profile picture
Aaron Goldberg


  • Small- and mid-capitalization midstream names are undervalued and unloved.
  • Years of long-term debt growth have come to an end and free cash flow is set to double in 2021.
  • The market hasn’t given any credence to retained cash flow.
  • If these names simply distributed all their free cash flow, their share price would grow by 71%.
  • For long-term investors, now is the time to pick up equity at bargain basement prices.

Oil pipeline in industrial district with factories at dusk
Photo by spooh/E+ via Getty Images

Although many equity names in the market are trading at bubble valuations, you can still find plenty of value in the small- to mid-cap midstream space. Many undervalued and unloved names are trading at bargain basement prices. Analyzing

This article was written by

Aaron Goldberg profile picture
I have over 30 years of personal investing experience. My articles cover mostly small to mid sized midstream companies and larger topics like the energy transition and macro questions, like when will we hit peak shale? I consider myself a value investor and recommend companies that produce high returns over a 3-8 year time horizon. As value returns to other sectors, I will broaden my articles to include other names.

Disclosure: I am/we are long ENLC, TRGP. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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