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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: diegosan who wrote (62308)	8/2/2019 6:06:52 PM
From: Spekulatius	Respond to of 78670

Diegosan - before you try to understand the numbers, try to understand the assets. Large pipes (trunks) like the Transco or huge NGL Processing plants are different than gathering pipes and processing systems and demand a different valuation. Assets with a longer life (large pipes, terminals, NGL cryo plants) who can work for 30 or more years fetch a higher multiple than a pipe connecting a gas well that can run out in 5 year or so. Midstream is like a crossover of real estate investing (location matters, build matters) and utility investing. if you understand either one or better both, you can figure out midstream really quick.