NorthAmericaEquityResearch20May2019EnergyInfrastructure/MLPsMEICTakeaways:LookingtoGrowtheMidstreamWolfpackwithConstructiveFundamentalsandCapitalDisciplineEnergyMLPsJeremyTonet,CFAAC(1-212)622-4915jeremy.b.tonet@jpmorgan.comBloombergJPMATONETJ.P.MorganSecuritiesLLCCharlieWBarber(1-212)622-3301charlie.w.barber@jpmorgan.comJ.P.MorganSecuritiesLLCRahulKrotthapalli(1-212)622-2408rahul.krotthapalli@jpmorgan.comJ.P.MorganSecuritiesLLCJosephRMartoglio(1-212)622-1741joseph.r.martoglio@jpmchase.comJ.P.MorganSecuritiesLLCVinayChitteti(91-22)6157-3462vinay.chitteti@jpmorgan.comJ.P.MorganIndiaPrivateLimitedSeepage30foranalystcertificationandimportantdisclosures,includingnon-USanalystdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.www.jpmorganmarkets.comThisnoteoutlineskeytakeawaysfromourmeetingswith28managementteamsattheMLP&EnergyInfrastructureConferencelastweekinLasVegas,aninvestordinnerwithEnbridgeandconversationswithnumerousinvestors.Attendanceimprovedandinvestorsentimentappearedupbeat,withnewinstitutionalinvestorsattendingversuslastyear.Managementteamsandinvestorsalikeappearedconstructiveontheindustry’spositivefundamentals,withsteadydomesticproductiongrowthdrivingincreasedlogisticsneeds,especiallyoutofthePermianandintopremiumexportmarkets.Atthesametime,andaswehavediscussedbefore,aheightenedscrutinyoncapitaldisciplineandB/Sstrengthpermeatedpresentationsandconversations.Finally,thetopicsofprivateversuspublicvaluationdisconnect(heightenedwiththeBPLtakeout),sponsoredentityrisk(andgeneralcorporategovernanceconcerns),aswellasoverallregulatoryrisksroundoutsomeofthemoreprominentthemesattheconference.Intheend,wecontinuetoadvocatethosemidstreamerspossessingthe4Fs:(1)fullyintegratedvaluechainsthatcreatebarrierstoentry;(2)franchisepositionsthatattr...
