J.P.Morgan says midstream players looking at favorable environment

Crestwood Equity Partners LP

14/03/2023 06:25

** J.P.Morgan upgrades midstream energy company MPLX LP
 MPLX.N  to "overweight" from "neutral" while downgrading peer
Crestwood Equity Partners  CEQP.N  to "neutral" from
"overweight"
    ** JPM says fundamentals in midstream remain broadly
positive with regards to oil prices supporting production growth
and hydrocarbon export molecules moving
    ** "We favor midstreamers with leverage to oily basins with
tighter infrastructure backdrops as well as those possessing
full value chain integration and leverage to steady demand
and/or contractual protection" - JPM
    ** Says MPLX has been supported by diverse asset footprint
and valuable refinery logistics stability, and thus continues to
show strong operational performance, including asset and cost
optimizations
    ** Meanwhile, says CEQP has weaker execution, less financial
flexibility
    ** We step down on CEQP following back-to-back quarters of
operational weakness and a lighter-than-expected 2023 guide -
JPM
    ** CEQP down 5.46& YTD while MPLX up 4.90%

 (Reporting by Aniruddha Ghosh in Bengaluru)
 ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))