North America Midstream & Energy Infrastructure: Midstream Snapshot: Seeing Shadows

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North America Midstream & Energy Infrastructure: Midstream Snapshot: Seeing Shadows

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24 Jul 2026 07:15:56 ET │ 15 pages

North America Midstream & Energy Infrastructure

Midstream Snapshot: Seeing Shadows

CITI'S TAKE

And just like that, Brent broke back above $100/bbl and concerns around

2Q26 potentially representing the 2026 peak for Midstream appear

further in the rearview. While there's no shortage of uncertainty and we

still don't expect management teams to underwrite these commodity Spiro DounisAC

prices into guidance, ongoing volatility could continue to present +1-212-816-6926

opportunities to outperform. Geopolitical conflict aside, outlooks remain spiro.dounis@citi.com

constructive across our coverage. Growth backlogs are robust and the

Douglas IrwinAC return of curtailed Permian volumes (though the exact magnitude remains

unclear) could present upside to volume outlooks throughout 2H26 and +1-212-816-9525

douglas.irwin@citi.com into 2027. KMI kicked off earnings on a positive note, which could be a

good signal for the rest of the space. Specifically, KMI posted a 2Q beat Charles Bryant

along with expectations of trending at least 5% above budget. The backlog +1-212-816-3284

declined, but we view this as temporary with plenty of shadow-backlog charles.bryant@citi.com

opportunities approaching the finish line (more on this below).

What were people asking? 1) What stocks do we like this quarter? We see a few

particularly constructive setups. First, ET likely benefits from a variety of tailwinds.

We'll also be looking for potential updates around NGL recontracting and the

broader project backlog, both of which would likely be well received. Second, we

believe the bar for WMB is low following recent underperformance. Any positive