Enterprise Products Partners: Irreplaceable Assets and Long-Term Considerations
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The oil and gas industry can loosely be separated into three spaces; upstream, midstream, and downstream. Historically I’ve been averse to anything associated with oil and gas because of the extreme dependency on extrinsic factors, namely the price of oil. Upstream exploration and production companies find and extract oil and natural gas while downstream companies process hydrocarbons and turn them into useful products like fuel and petrochemicals. Upstream and downstream companies make money in slightly different ways but each tend to be boom and bust because they both earn a commodity-based margin which is heavily influenced by market prices of said commodities. Midstream companies are a different animal, however, and in many cases behave more like a subscription business than a commodity-dependent cyclical.
Enterprise Products Partners: Irreplaceable Assets and Long-Term Considerations
Enterprise Products Partners: Irreplaceable…
Enterprise Products Partners: Irreplaceable Assets and Long-Term Considerations
The oil and gas industry can loosely be separated into three spaces; upstream, midstream, and downstream. Historically I’ve been averse to anything associated with oil and gas because of the extreme dependency on extrinsic factors, namely the price of oil. Upstream exploration and production companies find and extract oil and natural gas while downstream companies process hydrocarbons and turn them into useful products like fuel and petrochemicals. Upstream and downstream companies make money in slightly different ways but each tend to be boom and bust because they both earn a commodity-based margin which is heavily influenced by market prices of said commodities. Midstream companies are a different animal, however, and in many cases behave more like a subscription business than a commodity-dependent cyclical.