Efficiency Analysis of mega cap c-corps midstreams
WFS------Key Conclusions. (1) The big five mega cap c-corps all screen well – OKE stands out, (2) There was more variation among large cap MLPs but (not surprising) EPD stands out. (3) The FANG of midstream (NGL logistics) shines through (mostly), supporting our positive thesis on these names. (4) Larger companies that screened below the median on some or all of the metrics include DCP, SEMG, PAA and NS, perhaps highlighting M&A opportunities (and the potential for cost cutting synergies). (5) Looking at the midstream top 20, OKE, KMI, and TGE stand out as having high margins and low operating costs. (6) The sponsored MLPs screen very well across all metrics likely due to the fact that the number of employees and expenses allocated to sponsored MLPs are probably understated (relative to a standalone operating company).