The rapid growth of oil & gas production in North America from 2009 to 2014 spurred a cycle of historic demand for midstream infrastructure in the form of gathering, transportation, and processing.
However, midstream segment economics are under increased pressure given the current climate of sustained depressed prices and limited exploration activity.
Most of the midstream contracts were negotiated at a time when crude oil prices were at all-time highs and exploration budgets were relatively unlimited.
To maximize value and enhance returns, there are a number of initiatives that companies could quickly implement to optimize their balance sheets and bring their cost structures in line with the reality of the market.
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Compliments of Alix Partners – a member of the EACCNY