North America Midstream and Refining: Where lives the torque

Research evidence excerpt

North America Midstream and Refining: Where lives the torque

Equity Research

14 May 2026

North America Midstream and Refining

Where lives the torque

Against an increasingly constructive backdrop for US crude

production, we examine the growth outlook for Permian inlet

volumes across our NGL incumbents. We like TRGP for direct North America Midstream and Refining NEUTRAL

Unchangedexposure and unmatched execution and think ET remains

undervalued given fundamental tailwinds on multiple fronts. North America Midstream and Refining

Theresa Chen, CFA

+1 212 526 7195

The emergent call on US crude production, catalyzed by the ongoing Middle East conflict, theresa.chen@barclays.com

has undoubtedly strengthened the growth outlook across our midstream coverage, and BCI, US

especially for our NGL-levered operators (EPD, ET, KNTK, MPLX, PSX, OKE, TRGP).

Although major changes to producer drilling plans remain contingent on greater clarity in

the back end of the curve, expectations for an eventual uptick in US production continue

to gain traction. Barclays US Energy Services analyst David Anderson affirmed this

perspective in a recent note upgrading his industry view to Positive amid the "Best Setup

For Services in 20 Years." For investors seeking to express this incrementally bullish

outlook within midstream, we view ET and TRGP as prime beneficiaries of accelerated

Permian production growth.

For ET, we expect higher inlet volumes to translate to additional growth across the

partnership's Permian NGL and residue gas pipeline assets over time, potentially

underwriting further expansion opportunities. With solid execution on major projects

underway, and fundamental tailwinds also benefitting the often-less-appreciated